v256.0 · tax residency · US · verified 2026-04
United States tax residency
Rules that determine when you become tax-resident in United States, the headline rates, and any HNW or expat special regime that softens the standard system.
Threshold
183 days/year
Taxation basis
CITIZENSHIP-BASED — uniquely taxes US citizens worldwide regardless of residence
Top marginal rate
37% federal + state (CA 13.3%, NY 10.9%, FL/TX/WA/NV/SD/AK/WY 0%); typical all-in 37-50%
Capital gains
0/15/20% long-term federal + NIIT 3.8% + state; 37% short-term federal
Special regime: FEIE (Foreign Earned Income Exclusion) — $126,500 (2024); $130,000 (2025)
Citizenship-based taxation means US citizens + green-card holders ALWAYS file regardless of residence. FEIE excludes ~$126K-130K of foreign EARNED income if living abroad >330 days/12 months OR bona-fide foreign resident. FTC (Foreign Tax Credit) on remaining. FATCA + FBAR reporting mandatory. Substantial-presence test for non-US: >31 days current year + (current days + ⅓ prior year + ⅙ 2-yr-prior) ≥ 183.
Rate landscape
| Dividends tax | Qualified: 0/15/20% federal; ordinary: 37% federal + state |
| Exit tax | YES — comprehensive Expatriation Tax (IRC §877A) on covered expatriates |
| Tax treaty network | 60+ jurisdictions |
| CRS (automatic info exchange) | NON-PARTICIPANT (uses FATCA instead — bilateral) |
Recent regime changes (2023-2026)
No major personal-tax reform 2024-26 — TCJA provisions (Trump 2017 tax cuts) sunset Dec 31 2025; rates revert to pre-2018 absent Congressional action. Top rate would revert to 39.6%, brackets compressed. CTA (Corporate Transparency Act) BOI reporting active 2024. Wealth tax proposals (Warren, Sanders) federal-level remain unenacted.
Strengths
- Deepest capital markets, world-reserve currency, USD-denominated assets
- Wide range of tax-advantaged vehicles (401k, IRA, HSA, 529, etc.)
- FEIE $126K-130K exclusion competitive for expat workers
- State-tax planning (FL/TX/WA/NV) eliminates significant rate band
Drawbacks
- CITIZENSHIP-BASED TAXATION unique — US citizens cannot escape filing without renouncing
- Renunciation triggers §877A exit tax for "covered expatriates" (net worth >$2M or 5-yr avg tax >$201K 2024)
- FATCA reporting + FBAR compliance burden severe
- Estate + gift tax 40% above $13.6M individual / $27.2M couple exemption (drops to ~$7M Jan 2026 if TCJA sunsets)
- State rates stack significantly in CA/NY/NJ
Top cities for tax-residency seekers
New York San Francisco Los Angeles Chicago Miami Austin Seattle Houston Boston
Source: official United States tax authority page · Last verified 2026-04
See also: full United States country profile · full tax-residency atlas