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The United States tax system is one of the biggest sources of confusion for immigrants arriving in the country. Unlike Brazil, where most taxes are centralized at the federal government, the US adopts a three-tiered independent taxation model: federal, state, and municipal. Each level charges its own taxes, has its own rules, and funds different services, making tax planning an essential skill for any resident.
Understanding how this structure works is the first step to avoiding surprises when filing taxes and making smarter financial decisions, such as choosing which state to live in. In 2026, federal tax rates range from 10% to 37%, nine states do not charge income tax, and the rules on worldwide income taxation require special attention from those who have earnings outside the US.
This guide clearly explains each of the three levels of taxation, with updated data for 2026, so you can navigate the American tax system with confidence.
Federal Taxes and the IRS
The federal level is administered by the Internal Revenue Service (IRS), equivalent to Brazil’s Receita Federal. The main federal tax is the Federal Income Tax, which follows a progressive model with seven tax brackets in 2026: 10%, 12%, 22%, 24%, 32%, 35%, and 37%. The top rate of 37% applies to taxable income above $640,600 for single filers and $768,600 for married couples filing jointly.
The standard deduction for 2026 is $16,100 for single filers, $32,200 for married couples filing jointly, and $24,150 for heads of household. This deduction reduces the amount of income on which tax is calculated, and most taxpayers choose it instead of itemizing individual deductions.
In addition to income tax, every salaried worker pays FICA (Federal Insurance Contributions Act) contributions, withheld directly from their paycheck. In 2026, the rate is 6.2% for Social Security (retirement) on earnings up to $184,500, plus 1.45% for Medicare (healthcare program for seniors), totaling 7.65%. The employer pays the same amount, and earnings above $200,000 are subject to an additional 0.9% Medicare surtax.
State Taxes in the US
Each of the 50 states has autonomy to set its own tax rules, resulting in significant differences in tax burden between regions. The state you choose to live in directly impacts how much you pay in taxes. In 2026, nine states do not charge state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
Living in a state without income tax may seem advantageous at first glance, but it’s important to consider the total tax burden. Texas, for example, offsets the absence of income tax with some of the highest property tax rates in the country, with an effective rate of approximately 1.36%. Florida does not charge income tax, but applies a state sales tax of 6%, which can be increased by municipal rates. Washington does not tax wages, but charges a 7% tax on long-term capital gains above $262,000.
The Sales Tax is another common state tax, charged as an additional percentage on products and services at the time of purchase. Unlike Brazil, where taxes are already included in the sticker price, in the US the sales tax is added at the register, which surprises many Brazilians on their first purchases. Rates vary by state, county, and city, and can exceed 10% in some locations.
Local Taxes and Property Tax
The most decentralized level of taxation occurs in cities, counties, and school districts, which can institute their own taxes to fund community services. The most relevant is the Property Tax, similar to Brazil’s IPTU. It is calculated based on the assessed value of the property and represents the main source of funding for local public schools in the United States.
Funds collected from local taxes pay for elementary and secondary schools, fire departments, local police, sanitation, libraries, and maintenance of public parks. Therefore, regions with better-rated schools tend to have higher property taxes, and this relationship is an important factor in deciding where to live, especially for families with school-age children.
Worldwide Income Taxation
An aspect that catches many immigrants by surprise is the rule on worldwide income taxation. US citizens and permanent residents (green card holders) are required to report to the IRS all income earned both inside and outside the United States, including salaries, rentals, investments, and capital gains in any country in the world.
To avoid double taxation, there are tax treaties between the US and several countries, as well as mechanisms such as the Foreign Tax Credit, which allows you to offset taxes paid abroad. Anyone with financial accounts outside the US with an aggregate value exceeding $10,000 at any time during the year is also required to file the FBAR (Foreign Bank Account Report) with FinCEN, under penalty of significant fines.
Deadlines and Annual Obligations
The federal income tax return in the US must be filed by April 15 of the year following the tax year. The requirement to file depends on factors such as marital status, age, and annual income, but in general, most residents who work and receive a salary must file annually. It is possible to request an automatic six-month extension for filing, but taxes owed are still due in April.
Hiring an American accountant (CPA) is one of the most important decisions for those becoming residents in the US. A qualified professional ensures tax compliance, identifies deductions applicable to your situation, and assists with tax planning, especially for those with income or assets in other countries. Software such as TurboTax and H&R Block are also popular options for simpler returns.
Victoria Harper
Editor-in-Chief
Leading journalism and editorial content at Visto n’ Visa, Victoria helps make immigration topics clear, trustworthy, and easy to understand. Her focus is on delivering useful, human, and relevant content for people exploring new paths abroad.
