Lower income taxes in the United States

The high tax burden on income and labor in Brazil is one of the main reasons why so many Brazilian professionals and businessmen migrate to the United States and other countries in the world.

Different tax structures

Tax systems in different countries vary significantly, and there are many differences between the tax structures in Brazil and the United States. Each country has specific laws and regulations that affect the way taxes are collected and used by local, state, and federal governments. Each US state has different tax rates and different taxes.

Income Tax: Brazil versus the USA

In Brazil we have a progressive income tax, with rates that vary from 0% to 27.5% on the gross annual income of individuals, depending on the amount of income.

In addition, Brazil also levies corporate income tax, known as IRPJ (Imposto de Renda da Pessoa Jurídica), which ranges from 15% to 25% on company profits.

10 to 37% in Annual Gross Income

In the United States, the income tax system is also progressive, with tax rates that vary from 10% to 37% on the gross annual income of individuals. Virtually everyone who works and is over 18 needs to file an annual Federal Income Tax return, unlike Brazil, which exempts many cases.

Taxes on business profits

In addition, the United States also has federal taxes on corporate profits, which range from 15% to 35%. However, it is important to note that both individual and corporate income tax rates in the United States are generally lower than those in Brazil.

Consumption Taxes

In Brazil: ICMS up to 25%.

Another significant difference in the tax burden between Brazil and the United States is in consumption taxes. In Brazil, the main consumption tax is the ICMS (Value-Added Tax on Sales and Services), which is a state tax levied on the sale of goods and the provision of services. ICMS rates vary between states and can be as high as 25% in some cases.

Sales Tax: 0 to 10%.

In the United States, consumption tax is known as Sales Tax, and is levied at the state and local level. Sales Tax rates change from state to state and also at the local level, usually ranging from 0% to 10%. 

Property Taxes

Property Tax

In Brazil, the famous property tax (IPTU) is a municipal tax levied on the ownership of urban real estate. The IPTU rates vary according to the market value of the property, its location, and the city in which the property is located. In the United States, the tax levied on property is called Property Tax, which also varies according to the state and municipality where the property is located.

Best States for Taxation in the USA

According to these three categories (Income Tax, Sales Tax and Property Tax) you can choose which are the best states to pay less taxes in the United States according to your reality.

State Income Tax

Some states with zero tax rate

Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming do not charge a State Income Tax. Other states that charge up to 5% for this tax are: Arizona, Colorado, Illinois, Indiana, Louisiana, Michigan, North Carolina, Ohio, Oklahoma, Pennsylvania, and Utah.

Sales Tax (Similar to ICMS in the USA)

Zero tax rate in many states

As for the Sales Tax, Alaska, Delaware, Montana, New Hampshire, and Oregon do not charge this tax, which makes it easier for Americans living in these states to access consumer goods. 

Colorado only charges 2.9%, while Georgia, Hawaii, New York and Wyoming charge 4%. California, on the other hand, a state much desired by tourists for its lifestyle, has the highest Sales Tax in the United States, which reaches 7.25% of a product purchased by the consumer.

Property Tax

Lower Property Tax rates

Finally, the states with the lowest Property Tax are Hawaii (0.29%), Alabama (0.29%), Nevada, (0.48%), Colorado (0.48%), Idaho (0.49%), Arizona (0.51%) and Utah (0.52%).

Sharp difference in relation to IPTU 

These numbers are very different if compared to the IPTU charged by large Brazilian cities such as São Paulo (1% for residences and 1.5% for land) and Rio de Janeiro (1% for residential properties and 3% on land). In addition, in Brazil the costs with bureaucracy and property registration are traditionally higher.

Greater buying power and higher quality of life in the USA

The difference between the rates charged in American taxes for Brazilians is big, and moving to the USA is so attractive for many Brazilians because the same income in real and in dollar are in practice not the same.

Since consumption taxes are much lower in the USA, earning a salary in dollars makes the purchasing power and the quality of life in the United States much better than in Brazil.

Getting a green card is easier than you think

Investing in the United States is not the only way to get a green card. 

Your profession can earn you a green card

If you are a skilled professional, have above average skills in your professional field, or have more than five years of experience, you may be eligible for a green card. 

Your Family in the USA

In this category, if you are approved for a green card, your spouse and children under 21 will also be covered, making your cultural adjustment in the United States much easier and smoother.

Find out if you are eligible

Want to know if you are eligible? Fill out our form and we will contact you!