About United States of America's Tax System
United States of America, located in North America, offers a worldwide tax system. Under a worldwide tax system, residents are taxed on their global income regardless of where it's earned. However, various tax treaties and exemptions may apply to foreign-sourced income.
With a corporate tax rate of 21% and a top personal income tax rate of 37%,United States of America offers a moderate tax environmentin our World Tax Index with an overall score of 68/100.
Tax Information
21%
Federal corporate tax rate is 21%. State taxes are additional.
37%
WorldwideTop federal marginal rate is 37%. State income taxes are additional. Key Details of the U.S. Tax System: Individuals: U.S. citizens and Green Card holders (resident aliens) are taxed on global income. Relief Measures: To avoid double taxation, individuals can use the Foreign Earned Income Exclusion (FEIE) and Foreign Tax Credits (FTC). Non-Residents: Non-resident aliens are only taxed on U.S.-source income. Corporations: Following the 2017 Tax Cuts and Jobs Act (TCJA), corporations generally do not owe U.S. tax on foreign-source dividends, moving toward a territorial system, though they may face taxes on certain types of foreign income (e.g., GILTI - Global Intangible Low-Taxed Income). Territories: Individuals residing in U.S. territories (e.g., Puerto Rico) may be exempt from U.S. tax on income from that territory.
Economic & Investment Climate
Measures how often a country's tax regulations have changed over the last decade. Higher score means more predictable tax environment.
Indicates how independent the country's tax system is from global pressures. Higher score means more control over own tax policies.
A measure of the country's overall economic health and predictability, based on GDP growth, inflation, and sovereign credit ratings.
Reflects the safety and security of investments in the country, considering factors like legal protections for investors and political risk.
Based on perceived levels of public sector corruption. Higher score indicates a cleaner, more transparent business environment.
Rates the value of special programs offered, such as tax-free periods for new residents or designated economic zones. Higher score means more attractive incentives.
Investment & Residency Programs
United States of America offers residency programs for foreign investors looking to establish a presence in the country.
Minimum Investment
$800,000
Investment Type
Business Investment (in a new commercial enterprise that creates 10 jobs)
Minimum Stay
Must maintain residency (not absent for more than 1 year).
Special Conditions
Known as the EB-5 Immigrant Investor Program.
Citizenship Pathways
United States of America offers citizenship through ancestry or bloodline connections.
Rule
Jus Sanguinis (Right of Blood)
Conditions
A child born outside the U.S. is a citizen at birth if at least one parent is a U.S. citizen AND that parent met specific U.S. residency requirements *before* the child's birth.
United States of America's policy on birthright citizenship.
Rule
Jus Soli (Right of Soil)
Conditions
Any person born in the territory of the United States (including most territories like Puerto Rico, Guam) is automatically a citizen, regardless of the parents' nationality or legal status (as per the 14th Amendment).
Get personalized advice on relocating to United States of America from our expert consultants.
Book Free ConsultationCompare Destinations
