Knowing how income tax is collected in the United States is a topic that draws the attention of many Brazilians who wish to immigrate to the USA, both because of the high tax burden in Brazil and the desire to live in a country that is economically stable and offers more chances for personal growth and prosperity.

In general, the tax burden in the United States is considered lower than in Brazil. While Brazil has a tax burden that exceeds 33% of GDP, in the United States this figure is around 24%. 

Consumption tax tends to be much higher in Brazil, where the states charge ICMS (Value-Added Tax on Sales and Services) rates that exceed 20%, while in the US there is even exemption from this type of consumption tax in many states.

In addition, the American tax system is more simplified and transparent, with fewer direct taxes and duties on consumption (as is the case with the ICMS in Brazil).

Tax Bracket

An important aspect to note is that taxation in the USA is based on a "tax bracket" concept, that is, an income bracket in which each citizen is assigned a maximum tax rate according to his/her annual income. 

The tax rates vary according to the income bracket, and are progressive, i.e. the higher the income, the higher the tax rate. But it also works the other way around, i.e. the lower the income, the lower the tax rate to be paid. 

In this way the system is fairer, and citizens with lower salaries are less burdened and can have a good standard of living and consumption, because the collection of Sales Tax (the consumption tax) is low in the United States.

Maximum 37% Federal Income Tax 

To give you an idea, according to the IRS website, a single citizen earning up to $11,000 per year pays a maximum federal income tax rate of 12%. A single citizen who is in the top income bracket (above $578,125) pays a maximum federal income tax rate of 37%.

State Taxes

However, it is important to remember that in the US, in addition to the federal income tax, each state has its own tax burden and tax rates, which can vary considerably. For example, the state of New York charges an income tax rate ranging from 4% to 10.90%, while the state of Texas does not charge state income tax.

In summary, although the tax burden in the United States is lower than in Brazil, it is important to remember that each country has a different tax system and its own particularities. 

Before you decide to migrate, it is crucial that you research and understand how the American tax system works, as well as your tax obligations and responsibilities.

Emigrate to the USA: the best way to escape from the Lion!

Paying less taxes and living a more prosperous life in a culturally stable country is the dream of many Brazilians, and this is why the Brazilian community grows every year in the United States.

Your profession can be your passport to the USA

Did you know that investing in the United States is not the only way to get a green card?

If you are a degree-holding 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 in the EB-2 category.

This category of green card takes into account your expertise as a professional and your field of work, without requiring you to have a previous offer of employment in the USA.

Your Family in the USA

And 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.

Get Your American Dream off the Paper

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