A detailed introduction of three personal taxes in the United States

With the improvement of people's living standards, more and more people plan to immigrate to the United States, so what are the personal taxes in the United States? Next, let's take a look at the detailed introduction of the three types of personal tax in the United States. Welcome to reading.

I. Income tax

After being a taxpayer in the United States, all income earned in the world must be declared and paid in the United States. The highest tax rate is 39.6%, which is similar to China's tax system, that is, progressive tax rate. But for long-term investment, the tax rate is around 15%-20%, which is also a progressive tax rate (China unification is 20%), which is what we often call capital gains tax.

Second, inheritance tax/gift tax.

The concepts of gift tax and inheritance tax come down in one continuous line. Giving something to others when a person is alive is a gift tax, which is equivalent to transferring his own property to his children or heirs. This is the concept of inheritance tax. In the United States, when these two taxes are put together, it is equivalent to a concept called lifetime accumulated free assets quota, which will be adjusted every year. According to the annual inflation level, there is an increasing limit, which is currently 5.45 million US dollars. For example, this American taxpayer may have donated $2 million before his death, with a total tax exemption of $5.45 million. If he passes on his inheritance to his children after his death, he can only deduct $3.45 million. This is the concept of inheritance tax. The American inheritance tax rate is very high, 40%.

Even if you are not a taxpayer resident in the United States, you have assets in the United States, such as real estate and local investments in the United States, and your children still have to pay American estate tax when they inherit these estates. Even more frightening is that this part of the tax exemption is only $60,000! Far below the American's $5.45 million.

Three. Abandonment tax

If you want to get an American green card, you can become an American resident. Once you give up your American citizenship, you may have to pay a waiver tax of up to 20%. When you give up your American citizenship, it will see the global net asset value in your name. This tax has a great impact.

However, not all people who give up their American identity will pay this waiver tax, because the United States has a transitional policy, that is, within 15 years before the date of giving up their identity, if they are American residents for less than 8 years, they will be exempted from paying this waiver tax for more than 8 years. If you are an American citizen, you will not be affected for 8 years, and you will have to pay a waiver tax when you give up.