North & Central America
United States: tax at a glance
It is one of only two countries that taxes its citizens on worldwide income no matter where they live, with federal tax layered on top of state and local tax.
Ways to relocate to United States
The residency and citizenship routes that lead here, weighed against the tax picture above.
The taxes
- Personal income (top)
- 37%The federal rate is progressive, topping out at 37% above ~USD 640k (single, 2026). State income tax comes on top of that, ranging from 0% in TX/FL/WA to ~13.3% in California.
- Corporate income
- 21%
- Capital gains
- Long-term gains top out at 20%, plus a 3.8% net investment income tax, for a combined 23.8%. Short-term gains are taxed as ordinary income.
- VAT / Sales tax, set at the state and local level, ~0–~10%.
- None at the federal level.
- Dividends (WHT)
- 30%
- Interest (WHT)
- 30%, though portfolio interest is often exempt.
- Royalties (WHT)
- 30%
- Social security (employee)
- 7.65%, made up of 6.2% Social Security and 1.45% Medicare.
- Social security (employer)
- 7.65%
- Wealth tax
- None
- Inheritance / estate
- The federal estate tax is 40% above a USD 15M exemption (2026). Some states levy their own on top of that.
- Property tax
- Local property tax runs ~0.3–2.2% of value, depending on the state and county.
- Other
- State income tax applies on top of this, and there is an additional 0.9% Medicare tax on wages over USD 200k.
How the system works
- Tax system
- Citizenship-based
- Foreign income
- Taxed (worldwide)
- Taxes by citizenship
- Yes
- Exit tax
- Yes, leaving has a cost
- CFC rules
- Yes
- CRS
- Not participating
A special regime for new arrivals
There is no special regime here. If anything, it works the other way. Under citizenship-based taxation, US citizens and green card holders must file and pay US tax on worldwide income wherever they live. The foreign earned income exclusion is only USD 132,900 for 2026.
The rates below are indicative headline figures (top marginal, standard, and headline rates), reviewed 2026-07. Brackets, surcharges, and state, provincial or cantonal taxes vary. Treat this as a reference map, not advice.