USA
Wishing to live in the USA ? Find useful info in the expat guide
Free download
OR
View all destinations Change destination
Close

Income tax in the USA

Recommend

Personal taxation in the United States is a very complex matter. Indeed, tax is due at federal, states and sometimes local levels. For instance, if you live in New-York city, you have to pay the federal tax, the tax of the state of New-York and the tax of the city of New-York. The tax burden varies significantly between states: some states do not levy taxes on personal income or corporate profits like in Texas, while others have a fairly heavy taxation like in New York. Conversely, some taxes are exclusively levied at a local level like the Sales and Use tax. As a consequence, there is no VAT per se in the United States.

It is also important to determine your tax status in the country. A tax resident is taxed on his income as any U.S. citizen. You are considered as a tax resident by the U.S. administration if:

  • You hold a green card;

  • You have lived in the United States for more than 183 days;

  • You have lived in the United States for more than 30 days during the last calendar year and at least 183 days during the current year and the previous last two years. 

In general, income tax is deducted at source on the salary and an annual tax return form must be filed at the end of the fical year. 

  Note:

It is highly recommended to get some information about the taxation system in your state! Even if your state does not levy income tax, the federal tax is not avoidable!

  Useful links: 

Income Tax in the United States
en.wikipedia.org

Department of the Treasury
www.treasury.gov

Internal Revenue Service
www.irs.gov

We do our best to provide accurate and up to date information. However, if you have noticed any inaccuracies in this article, please let us know in the comments section below.
Recommend
expat.com Your favourite team
Member since 01 June 2008
Small earth, Mauritius
1 Comment
nomadicworld
nomadicworld
6 years ago

I would add that there are several tax treaties between the US and some countries which bear some tax allowances for citizens of each country.

Reply

See also

This article is about State Sales Tax Holidays. These are weekends when there is no sales tax on specific items.
You will need a working visa to be able to find a job or to follow a training program. If you are a skilled worker, you will need the H1-B visa while for an internship you have to apply for a J-1 visa.

Would you like to live in the USA?

Find useful information in our expatriate guide.

Expatriate health insurance in the USA

Free advice and quotation service to choose an expat health insurance in the USA

Moving to the USA

Find tips from professionals about moving to the USA

Travel insurance in the USA

Enjoy stress-free travel to the USA