Going to or leaving the United States of America
Local information | Details |
---|---|
Tax authority |
The Internal Revenue Service (IRS) |
Website |
|
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 information |
Tax authority |
---|---|
Details |
The Internal Revenue Service (IRS) |
Local information |
Website |
Details | |
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
Married filing jointly. Taxable income band USD | National income tax rates |
---|---|
0 to 10,275 |
10% |
10,276 to 41,775 |
12% |
41,776 to 89,075 |
22% |
89,076 to 170,050 |
24% |
170,051 to 215,950 |
32% |
215,951 to 323,925 |
35% |
323,926 + |
37% |
Married filing jointly. Taxable income band USD |
0 to 10,275 |
---|---|
National income tax rates |
10% |
Married filing jointly. Taxable income band USD |
10,276 to 41,775 |
National income tax rates |
12% |
Married filing jointly. Taxable income band USD |
41,776 to 89,075 |
National income tax rates |
22% |
Married filing jointly. Taxable income band USD |
89,076 to 170,050 |
National income tax rates |
24% |
Married filing jointly. Taxable income band USD |
170,051 to 215,950 |
National income tax rates |
32% |
Married filing jointly. Taxable income band USD |
215,951 to 323,925 |
National income tax rates |
35% |
Married filing jointly. Taxable income band USD |
323,926 + |
National income tax rates |
37% |
Married filing jointly. Taxable income band USD | National income tax rates |
---|---|
0 – 10,275 | 10% |
10,276 – 41,775 | 12% |
41,776 – 89,075 | 22% |
89,076 – 170,050 | 24% |
170,051 – 215,950 | 32% |
215,951 – 323,925 | 35% |
323,926 + | 37% |
Married filing jointly. Taxable income band USD | 0 – 10,275 |
---|---|
National income tax rates | 10% |
Married filing jointly. Taxable income band USD | 10,276 – 41,775 |
National income tax rates | 12% |
Married filing jointly. Taxable income band USD | 41,776 – 89,075 |
National income tax rates | 22% |
Married filing jointly. Taxable income band USD | 89,076 – 170,050 |
National income tax rates | 24% |
Married filing jointly. Taxable income band USD | 170,051 – 215,950 |
National income tax rates | 32% |
Married filing jointly. Taxable income band USD | 215,951 – 323,925 |
National income tax rates | 35% |
Married filing jointly. Taxable income band USD | 323,926 + |
National income tax rates | 37% |
Single person. Taxable income band USD | National income tax rates |
---|---|
0 to 10,275 |
10% |
10,276 to 41,775 |
12% |
41,776 to 89,075 |
22% |
89,076 to 170,050 |
24% |
170,051 to 215,950 |
32% |
215,951 to 539,900 |
35% |
539,901 + |
37% |
Single person. Taxable income band USD |
0 to 10,275 |
---|---|
National income tax rates |
10% |
Single person. Taxable income band USD |
10,276 to 41,775 |
National income tax rates |
12% |
Single person. Taxable income band USD |
41,776 to 89,075 |
National income tax rates |
22% |
Single person. Taxable income band USD |
89,076 to 170,050 |
National income tax rates |
24% |
Single person. Taxable income band USD |
170,051 to 215,950 |
National income tax rates |
32% |
Single person. Taxable income band USD |
215,951 to 539,900 |
National income tax rates |
35% |
Single person. Taxable income band USD |
539,901 + |
National income tax rates |
37% |
Head of household. Taxable income band USD | National income tax rates |
---|---|
0 to 14,650 |
10% |
14,651 to 55,900 |
12% |
55,901 to 89,050 |
22% |
89,051 to 170,050 |
24% |
170,051 to 215,950 |
32% |
215,951 to 539,900 |
35% |
539,901 + |
37% |
Head of household. Taxable income band USD |
0 to 14,650 |
---|---|
National income tax rates |
10% |
Head of household. Taxable income band USD |
14,651 to 55,900 |
National income tax rates |
12% |
Head of household. Taxable income band USD |
55,901 to 89,050 |
National income tax rates |
22% |
Head of household. Taxable income band USD |
89,051 to 170,050 |
National income tax rates |
24% |
Head of household. Taxable income band USD |
170,051 to 215,950 |
National income tax rates |
32% |
Head of household. Taxable income band USD |
215,951 to 539,900 |
National income tax rates |
35% |
Head of household. Taxable income band USD |
539,901 + |
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.
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 USD206,100 (USD103,050 for married filing separately) and at a tax rate of 28% for alternative minimum taxable income exceeding USD206,100 (USD103,050 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 2022 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
How can I open an offshore bank account?
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.
You might also be interested in
What is an offshore bank account?
Opening an offshore account, can be an effective way to save, invest and manage money while abroad.
Financial action plan
Steps to build a better financial future abroad.
Your guide to moving abroad
Read our 10-step guide to moving abroad to make sure you've got everything covered.