🇺🇸 United States · Tax System
Corporate tax, VAT/GST, personal income tax, capital gains, and filing obligations.
Quick answer
The U.S. taxes federal income (IRS) plus state and often local taxes; rates vary by state and some have no income tax. U.S. citizens and residents are taxed on worldwide income — the U.S. is unusual in taxing citizens who live abroad. Businesses file federal and state returns.
Federal taxes are administered by the IRS; there is no federal VAT. Corporations pay federal corporate income tax, while sales taxes and many other taxes are set at the state and local level.
- The federal corporate income tax rate is a flat 21%; states may levy additional corporate taxes.
- There is no federal VAT/GST; sales tax is set and collected at the state and local level.
- Federal filing and payment, including obtaining the EIN, are handled through the IRS.
Official authorities
- Internal Revenue Service (IRS)
Federal tax authority — filings, EIN and federal tax obligations.
Frequently asked questions
Does the U.S. tax worldwide income?
Yes — U.S. citizens and tax residents are taxed on worldwide income, though foreign tax credits and the foreign earned income exclusion can reduce double taxation.
Do all states have income tax?
No — several states such as Texas and Florida have no personal income tax, but you may still owe federal tax and other state taxes.
How is tax residency determined?
Tax residency is based on citizenship, green-card status or the substantial-presence test; non-residents are generally taxed only on U.S.-source income.
Official-information aggregation, not legal advice. Always verify on the authority's own site.
Government portals
- The White House — Official residence and office of the US President — executive orders, policy briefings, press releases
- U.S. Department of State — US passport and visa services, travel warnings, embassy information worldwide
- Internal Revenue Service (IRS) — Federal tax filing, refund status, ITIN/EIN applications, and Free File program
- USCIS — Green card, H-1B and work visas, naturalization, immigration benefits, and case status