39.50° N · 98.50° W
United States Tax Guide
North AmericaLast verified June 2026Worldwide system
- Top income tax
- 37%
- Capital gains
- 0-20%
- Corporate
- 21%
- VAT / GST
- 0%
- Residency test
- 183 days
Progressive 10-37% federal (TCJA seven-bracket structure made permanent by the One Big Beautiful Bill Act, signed 4 July 2025); state taxes 0-13.3% additional
In short
- The US offers the deepest capital markets, highest salaries and largest startup ecosystem in the world.
- No newcomer tax regime: the standard rates above apply to new residents.
- Watch out: Residency is hard to obtain, healthcare is expensive without employer cover, and citizens and green-card holders are taxed on worldwide income wherever they live.
Verified June 2026 · 3 sources
Recent changes
No changes logged since the last full verification.
Full change logBest for
- Zero capital gains
No CGT on investment, property, or crypto disposals (subject to "investor" classification).
- No wealth tax
No annual tax on net worth or assets.
- Special regime available
Foreign Earned Income Exclusion (FEIE) — Up to $132,900 of foreign earned income excluded from tax (2026)
Personal Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimes+
Personal Income Tax
Residency, rates, foreign income, capital gains, wealth and inheritance, special regimesTax Residency
Income Tax Rates
Foreign Income Treatment
Investment Income
Preferential rates for long-term capital gains (0/15/20% based on income); 3.8% NIIT may apply above MAGI thresholds
Wealth & Inheritance
Special Regimes
Practical Notes
OBBBA (4 July 2025) made the TCJA individual rates, doubled standard deduction (2026: $16,100 single / $32,200 MFJ), and Section 199A QBI deduction permanent — avoiding the planned 2026 reversion to pre-2018 brackets. SALT cap raised to ~$40,400 for 2026 (was $10k), increasing ~1%/year through 2029 before reverting to $10k in 2030. Citizenship-based taxation remains unique among major countries — US persons abroad still file regardless of residence.
Business & Corporate Tax
Corporate rate, withholding, VAT, substance, Pillar Two and treaties+
Business & Corporate Tax
Corporate rate, withholding, VAT, substance, Pillar Two and treatiesCorporate Income Tax
Withholding Taxes
VAT / GST
Compliance & Substance
Notable Regimes
- GILTI regime for foreign income
- FDII deduction
- BEAT minimum tax
OECD Pillar Two (15% global minimum tax)
No Pillar Two implementation legislated. The GILTI regime (Section 951A) is a separate US-specific minimum-tax mechanism on US-parent foreign income; the current administration has signalled no plans to enact GloBE rules.
See full implementation trackerTax Treaty Network
The US is the originator of the FATCA regime — it does not itself have an IGA. US treaty network is selective compared to the UK's and is gated by limitation-on-benefits provisions. Treaty with Hungary terminated 2024.
See full treaty matrixBeyond tax
Living in United States
The US offers the deepest capital markets, highest salaries and largest startup ecosystem in the world.
- Expat hub
- New York
- Monthly budget
- ~$7,000
- Climate
- Temperate, 13°C
- Time zone
- UTC-5
- Tax45
- Cost of living$$$$$
- Safety55
- Healthcare78
- English100
- Internet280 Mbps
- Warm climate40
- Residency access15
- Scores 0-100, higher is better. Editorial composite ratings; see method.
Ways to get residency
- H-1B / L-1 / O-1 work visasEmployer sponsorship, lottery (H-1B) or extraordinary-ability evidence (O-1)
- EB-5 Immigrant InvestorUS$800,000 in a targeted employment area or US$1,050,000 elsewhere, creating 10 jobs
Watch out: Residency is hard to obtain, healthcare is expensive without employer cover, and citizens and green-card holders are taxed on worldwide income wherever they live.
See how United States ranks for remote workers, retirees and familiesData Sources
Last verified: June 2026. Always check official sources before making a decision.
FAQ
What is the personal income tax rate in United States?
+
United States has a top personal income tax rate of 37%. The tax structure is: Progressive 10-37% federal (TCJA seven-bracket structure made permanent by the One Big Beautiful Bill Act, signed 4 July 2025); state taxes 0-13.3% additional. See the detailed breakdown above and verify with official sources.
Do I need to pay tax on foreign income in United States?
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United States uses a worldwide system for foreign income. US citizens and resident aliens taxed on worldwide income; Foreign Earned Income Exclusion is $132,900 for 2026
What are the residency requirements for United States?
+
Tax residency in United States generally requires 183 days of physical presence. Green card test or substantial presence test (31 days current year + 183 days over 3-year rolling period). Always verify current rules with official sources.
Is there a wealth tax in United States?
+
No, United States does not have a wealth tax. No federal wealth tax; some state property taxes
What is the corporate tax rate in United States?
+
The corporate tax rate in United States is 21%. 21% federal + state taxes (average ~26% combined)
US citizen moving to United States? Read this first.
United States's top personal rate of 37% means the Foreign Tax Credit (FTC) usually wins over FEIE for US citizens.
- •FTC (Form 1116) credits United States tax against US tax dollar-for-dollar. Because United States tax exceeds US tax on the same income, you typically owe zero US tax and accumulate carryforward credits (10-year carry).
- •Self-employment tax is owed in full to the US — no totalization agreement with United States.
- •For earned income near the FEIE cap (~$130k), FEIE is sometimes simpler administratively. Above the cap, FTC strategy almost always wins given United States's rates.
- •United States residency days threshold: 183. Treaty tie-breaker rules (where applicable) help with double-tax avoidance.
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