United States of America
A resident alien is taxable on income from all sources, including sources outside the United States.
There are four filing statuses (single, married filing jointly, married filing separately and head of household) with different rates applying to each. The lowest tax rate is 15% climbing to 39.6% for the highest brackets. There are various exemptions from taxable income, including the personal allowance. Investment income is taxed with other gross income, while the maximum tax payable on capital gains is 20%, with a lower rate applicable in certain circumstances.
The tax year ends on 31 December. Any balance of tax due for the year is usually paid by the following 15 April.
The Social Security program is financed by taxes levied under the Federal Insurance Contributions Act, with tax being levied at around 6.2%.
Employers pay tax of 6.2% on part of the employees' salary towards unemployment costs.
Transfer taxes start at 18% and increase to 55%. There are various allowances for Estate and Gift Taxes, including most inter-spouse transfers being exempt.
There are several excise taxes that are borne directly by the consumer.
State and local taxes are also imposed including Corporate Income or Franchise Tax, Individual Income Tax, Estate or Inheritance Tax, Sales and Use Taxes and Property Taxes.
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This page was last reviewed on 03 April 2006. The information may not reflect changes in legislation made after this date.
This is only a guide to your tax position and should not be relied on in place of professional accounting or tax advice. Any calculated figures are illustrative and are based on the data you provided.
