United States
Top Income Tax
37%
Marginal rate
Corporate Tax
21%
Standard rate
VAT / Sales Tax
0%
Standard rate
Capital Gains
20%
Standard rate
Overview
The US has a complex multi-layered tax system with federal, state, and local taxes. However, states like Florida, Texas, and Nevada offer zero state income tax. Uniquely, the US taxes citizens on worldwide income regardless of residency. The startup ecosystem is the world's largest.
Income Tax Brackets
| Income Range (USD) | Tax Rate |
|---|---|
| 0 - 11,600 | 10% |
| 11,600 - 47,150 | 12% |
| 47,150 - 100,525 | 22% |
| 100,525 - 191,950 | 24% |
| 191,950 - 243,725 | 32% |
| 243,725 - 609,350 | 35% |
| 609,350+ | 37% |
Federal rates only. State taxes add 0-13.3% (California highest). No state tax in FL, TX, NV, WA, WY, SD, AK, NH, TN.
Corporate Tax
Standard Rate
21%
21% federal flat rate. State taxes add 0-11.5%. Some states have no corporate tax.
VAT / Sales Tax
Standard Rate
0%
No federal VAT. Sales tax varies by state (0-10.25%). Many states have no sales tax.
Capital Gains Tax
Standard Rate
20%
Long-Term Rate
20%
0%, 15%, or 20% federal depending on income. Plus 3.8% NIIT for high earners. State taxes may apply.
Social Security Contributions
Employee
7.65%
Employer
7.65%
Self-Employed
15.3%
FICA: 6.2% Social Security (capped) + 1.45% Medicare (uncapped). Self-employed pay both halves.
Special Tax Regimes
Qualified Small Business Stock (QSBS)
Up to 100% exclusion of capital gains (up to $10M) on qualifying small business stock held 5+ years.
Eligibility: C-corp with gross assets under $50M. Must hold stock for 5+ years.
Foreign Earned Income Exclusion (FEIE)
Exclude up to $126,500 (2024) of foreign earned income if living abroad.
Eligibility: US citizen/resident living abroad 330+ days per year or bona fide resident of foreign country.
Pros & Cons
Pros
- World's largest market
- No-tax states available
- QSBS exclusion for startups
- Strong IP protection
- Deep capital markets
Cons
- Worldwide taxation for citizens
- Complex multi-state tax system
- No digital nomad visa
- High healthcare costs
- Self-employment tax 15.3%
Living Indicators
Cost of Living Index
Above average
Quality of Life Index
Good
Best For
Data Sources
Tax rate data for United States is compiled from the following authoritative sources:
- OECD Tax Database
- Tax Foundation International Tax Competitiveness Index
- World Bank Business Enabling Environment
- United States government tax authority publications
- PwC Worldwide Tax Summaries
Last verified: 2024-01
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.