Key Tax Rates at a Glance
| Tax Type | Rate | Tier | Notes | Source |
|---|---|---|---|---|
| Income Tax — top rate | 37.0% | High Tax | Top marginal rate | OECD 2026 |
| Income Tax — lowest rate | 10.0% | Entry rate | OECD 2026 | |
| Corporate Tax | 21.0% | Moderate | Standard rate | OECD 2026 |
| VAT | 0.0% | Zero | Standard rate | OECD 2026 |
| Capital Gains Tax | 20.0% | Moderate | Standard rate | OECD 2026 |
| Social Security (employee) | 7.65% | Employee contribution | OECD 2026 | |
| Territorial Taxation | No | Worldwide taxation | OECD 2026 | |
| Digital Nomad Visa | No | Check official government sources | Official |
United States Special Tax Regime
| Criterion | Detail |
|---|---|
| Who qualifies | Qualifying expats, investors and skilled workers. |
| Tax rate under regime | Reduced rate under United States Special Tax Regime. |
| Duration | Varies — consult official government sources. |
| Application process | Apply through United States Tax Authority. |
| Key restriction | Must not have been tax resident in prior years. |
Income Tax Brackets
Income Tax Brackets (Federal 2025)
The US federal income tax is progressive, based on income brackets that adjust annually for inflation. Married couples filing jointly have higher thresholds. Standard deduction: $14,600 (single, 2024). All US citizens and green card holders are subject to these brackets regardless of residence—a unique global feature. State income taxes apply in most states (ranges 0–13%) and must be calculated separately.
Corporate Tax
Corporate Tax
Federal corporate tax is a flat 21% under the Tax Cuts and Jobs Act (2018 onward). Pass-through entities (S-corporations, LLCs taxed as S-corps, partnerships, sole proprietors) are not subject to corporate tax but instead report income on individual tax returns at ordinary rates. Additionally, most states impose corporate income taxes (ranging 0–12%), making combined effective rates higher. Dividend distributions to shareholders are taxed at capital gains rates (0%, 15%, or 20% for qualified dividends).
VAT & Consumption Taxes
Capital Gains & Investment Income
Capital Gains & Investment Income
Long-term capital gains (held over 1 year) are taxed at preferential rates: 0% (low income), 15% (most taxpayers), or 20% (high income). Short-term gains are taxed as ordinary income. Qualified dividends receive the same favorable treatment. Net investment income tax (3.8% Medicare tax) applies to high-earner investment income. The wash-sale rule prevents claiming losses immediately before repurchasing substantially identical securities. Cryptocurrency is treated as property; trading triggers capital gains tax.
Digital Nomad & Expat Visas
United States does not currently offer a dedicated digital nomad visa. Check official government sources
Tax Scenarios — Effective Rates
Estimated all-in tax burden after income tax and employee social security. Assumes standard deductions; does not account for special regimes or itemised relief.
Tax Burden Calculator
Estimated take-home pay in —
Key Insight
United States applies a 37.0% top personal income tax rate, 21.0% corporate tax, and 0.0% VAT — a standard tax structure for the region.
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Frequently Asked Questions
United States Tax Tools
Social Security & Benefits
Social Security & Payroll Taxes
Employees pay FICA taxes: 6.2% Social Security (up to $168,600 wage base in 2024) plus 1.45% Medicare (unlimited). Combined employee rate: 7.65%. Employers match both. The US has totalization agreements with 30+ countries to prevent double taxation of Social Security. Self-employed individuals pay both employer and employee shares (15.3% total). For expats, Social Security credits earned in the US can be combined with foreign work credits toward US retirement benefits.