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Tax in the United States

Your personal tax guide for the United States of America

Going to or leaving the United States of America

Local tax information for the USA.
Local information Details

Tax authority

The Internal Revenue Service (IRS)

Website

www.irs.gov

Tax year

1 January to 31 December

Tax return due date

15 April (for US residents residing overseas on 15 April there is a 2 month automatic extension to 15 June)

Are tax return extensions possible?

Yes. However, an extension to file a return is not an extension to pay tax. To prevent interest and penalties from being charged on unpaid tax, any tax due should be paid by 15 April.

Is joint filing possible?

Yes, depending on personal circumstances, married taxpayers may file jointly or elect to file as 'married filing separate'.

Local tax information for the USA.
Local information

Tax authority

Details

The Internal Revenue Service (IRS)

Local information

Website

Details

www.irs.gov

Local information

Tax year

Details

1 January to 31 December

Local information

Tax return due date

Details

15 April (for US residents residing overseas on 15 April there is a 2 month automatic extension to 15 June)

Local information

Are tax return extensions possible?

Details

Yes. However, an extension to file a return is not an extension to pay tax. To prevent interest and penalties from being charged on unpaid tax, any tax due should be paid by 15 April.

Local information

Is joint filing possible?

Details

Yes, depending on personal circumstances, married taxpayers may file jointly or elect to file as 'married filing separate'.

2023 income tax rates

2023 income tax rates, married filing separately
Married filing jointly. Taxable income band USD National income tax rates

0 to 11,000

10%

11,001 to 44,775

12%

44,776 to 95,375

22%

95,376 to 182,100

24%

182,101 to 231,250

32%

231,251 to 346,875

35%

346,876 +

37%

2023 income tax rates, married filing separately
Married filing jointly. Taxable income band USD

0 to 11,000

National income tax rates

10%

Married filing jointly. Taxable income band USD

11,001 to 44,775

National income tax rates

12%

Married filing jointly. Taxable income band USD

44,776 to 95,375

National income tax rates

22%

Married filing jointly. Taxable income band USD

95,376 to 182,100

National income tax rates

24%

Married filing jointly. Taxable income band USD

182,101 to 231,250

National income tax rates

32%

Married filing jointly. Taxable income band USD

231,251 to 346,875

National income tax rates

35%

Married filing jointly. Taxable income band USD

346,876 +

National income tax rates

37%

2023 income tax rates, married filing jointly
Married filing jointly. Taxable income band USD National income tax rates
0 to 22,000 10%
22,000 to 89,450 12%
89,451 to 190,750 22%
190,751 to 364,200 24%
364,201 to 462,500 32%
462,501 to 693,750 35%
693,751 + 37%
2023 income tax rates, married filing jointly
Married filing jointly. Taxable income band USD 0 to 22,000
National income tax rates 10%
Married filing jointly. Taxable income band USD 22,000 to 89,450
National income tax rates 12%
Married filing jointly. Taxable income band USD 89,451 to 190,750
National income tax rates 22%
Married filing jointly. Taxable income band USD 190,751 to 364,200
National income tax rates 24%
Married filing jointly. Taxable income band USD 364,201 to 462,500
National income tax rates 32%
Married filing jointly. Taxable income band USD 462,501 to 693,750
National income tax rates 35%
Married filing jointly. Taxable income band USD 693,751 +
National income tax rates 37%
2023 income tax rates, single person
Single person. Taxable income band USD National income tax rates

0 to 11,000

10%

11,001 to 44,725

12%

44,726 to 95,375

22%

95,376 to 182,100

24%

182,101 to 231,250

32%

231,251 to 578,125

35%

578,126 +

37%

2023 income tax rates, single person
Single person. Taxable income band USD

0 to 11,000

National income tax rates

10%

Single person. Taxable income band USD

11,001 to 44,725

National income tax rates

12%

Single person. Taxable income band USD

44,726 to 95,375

National income tax rates

22%

Single person. Taxable income band USD

95,376 to 182,100

National income tax rates

24%

Single person. Taxable income band USD

182,101 to 231,250

National income tax rates

32%

Single person. Taxable income band USD

231,251 to 578,125

National income tax rates

35%

Single person. Taxable income band USD

578,126 +

National income tax rates

37%

2023 income tax rates, head of household
Head of household. Taxable income band USD National income tax rates

0 to 15,700

10%

15,701 to 59,850

12%

59,851 to 95,350

22%

95,351 to 182,100

24%

182,101 to 231,250

32%

231,251 to 578,100

35%

578,101 +

37%

2023 income tax rates, head of household
Head of household. Taxable income band USD

0 to 15,700

National income tax rates

10%

Head of household. Taxable income band USD

15,701 to 59,850

National income tax rates

12%

Head of household. Taxable income band USD

59,851 to 95,350

National income tax rates

22%

Head of household. Taxable income band USD

95,351 to 182,100

National income tax rates

24%

Head of household. Taxable income band USD

182,101 to 231,250

National income tax rates

32%

Head of household. Taxable income band USD

231,251 to 578,100

National income tax rates

35%

Head of household. Taxable income band USD

578,101 +

National income tax rates

37%

The applicable US tax rates depend on whether an individual is married or not and, if married, whether an individual elects to file a joint return with his or her spouse. Certain individuals also qualify to file as heads of households.
Unmarried non-resident aliens are taxed under the rates for single individuals. Married non-residents whose spouses are also non-residents are generally taxed under the rates for married persons filing separately.

In addition, higher income taxpayers with income over USD250,000 for married filing jointly and USD200,000 for single filing are subject to a 3.8% tax on their “net investment income”. The definition of “net investment income” is broad and essentially includes all income other than income from a trade or business. Compensation from personal services is generally excluded from this tax.

The US also imposes alternative minimum tax (AMT) at a rate of 26% or 28% on alternative minimum taxable income. The tax rate of 26% applies to taxpayers with alternative minimum taxable income up to USD220,700 (USD110,350 for married filing separately) and at a tax rate of 28% for alternative minimum taxable income exceeding USD220,700 (USD110,350 for married filing separately). Long-term capital gains and qualified dividends are generally taxed at lower rates of 15% or 20%.

The primary purpose of AMT is to prevent individuals with substantial income from using preferential tax deductions (such as accelerated depreciation), exclusions (such as certain tax-exempt income) and credits to substantially reduce or to eliminate their tax liability. It is an alternative tax because, after an individual computes both the regular tax and AMT liabilities, the greater of the two amounts constitutes the final liability.

Some states, cities and municipalities also levy income tax. City or municipal income tax rates are generally 1% or lower. However, the top 2023 rate for residents of New York City is 3.876%. State income tax rates generally range from 0% to 12%. Therefore, an individual’s total income tax liability depends on the state and the municipality where the individual resides or works.

Expat tax guides

Read tax guides for expats provided by EY.

Additional information

The Tax Navigator section is provided by EY in accordance with their Terms and Conditions (PDF). EY accepts no responsibility for the accuracy of this information. By using this information, you are accepting the terms under which EY is making the content available to you based on the legislation and practices of the country concerned as of 15/09/21 by EY and published in its Worldwide Personal Tax Guide, 2020-21.

Tax legislation and administrative practices may change, and this content is a summary of potential issues to consider. This content is provided for guidance purposes only; it is not meant for direct implementation of transactions or reliance upon when considering entering into transactions. It should not be used as a substitute for professional tax, legal, financial, accounting, consulting, regulatory or other professional advice and you should seek professional advice before taking any action. It is your responsibility to ensure you make all relevant disclosures to the relevant tax authorities and that you are compliant with local tax legislation. EY accepts no responsibility for any loss arising from any action taken or not taken by anyone using this material.

HSBC accepts no responsibility for the accuracy of this information.

This information does not constitute advice and no liability is accepted to recipients acting independently on its contents. The views expressed are subject to change.

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