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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'.

2020 income tax rates

2020 income tax rates, married filing jointly.

Married filing jointly. Taxable income band USD National income tax rates

0 to 19,750

10%

19,751 to 80,250

12%

80,251 to 171,050

22%

171,051 to 326,600

24%

326,601 to 414,700

32%

414,701 to 622,050

35%

622,051 +

37%

2020 income tax rates, married filing jointly.

Married filing jointly. Taxable income band USD

0 to 19,750

National income tax rates

10%

Married filing jointly. Taxable income band USD

19,751 to 80,250

National income tax rates

12%

Married filing jointly. Taxable income band USD

80,251 to 171,050

National income tax rates

22%

Married filing jointly. Taxable income band USD

171,051 to 326,600

National income tax rates

24%

Married filing jointly. Taxable income band USD

326,601 to 414,700

National income tax rates

32%

Married filing jointly. Taxable income band USD

414,701 to 622,050

National income tax rates

35%

Married filing jointly. Taxable income band USD

622,051 +

National income tax rates

37%

2020 income tax rates, single person.

Single person. Taxable income band USD National income tax rates

0 to 9,875

10%

9,876 to 40,125

12%

40,126 to 85,525

22%

85,526 to 163,300

24%

163,301 to 207,350

32%

207,351 to 518,400

35%

518,401 +

37%

2020 income tax rates, single person.

Single person. Taxable income band USD

0 to 9,875

National income tax rates

10%

Single person. Taxable income band USD

9,876 to 40,125

National income tax rates

12%

Single person. Taxable income band USD

40,126 to 85,525

National income tax rates

22%

Single person. Taxable income band USD

85,526 to 163,300

National income tax rates

24%

Single person. Taxable income band USD

163,301 to 207,350

National income tax rates

32%

Single person. Taxable income band USD

207,351 to 518,400

National income tax rates

35%

Single person. Taxable income band USD

518,401 +

National income tax rates

37%

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.

The United States also imposes alternative minimum tax (AMT) at a rate of 26% on alternative minimum taxable income, up to USD197,900, for all filers except USD98,950 for married filing separately and at a rate of 28% on alternative minimum taxable income exceeding USD197,900 for all filers except USD98,950 for married filing separately (long-term capital gains and qualified dividends are generally taxed at lower rates of 15% or 20%.

Some states, cities and municipalities also levy income tax. City or municipal income tax rates are generally 1% or lower. However, the top 2020 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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