Property buying guide for USA
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Taxes

Taxes in USA

Taxes in the USA are among the highest in the world. Prior to purchasing real estate, buyers should seek advice from a tax expert who can recommend the best way to register property and minimize tax burden.

Transaction and registration taxes

recording fee is charged for the registration of property at 0.2–0.5% of the property value.

Ownership taxes

Property tax is paid to the district court every year. It is 1% of the estimated property value on average but the total sum varies from state to state. In California, it costs $2,839 per year and $6,579 in New Jersey, the highest in the States. Louisiana has the lowest at $243.

Rate,
%
Average sum,
USD
Arizona 0.72 1,356
Hawaii 0.26 1,324
California 0.74 2,839
New Jersey 1.89 6,579
New Your 1.23 3,755
Texas 1.81 2,275
Florida 0.97 1,773

Capital gains, estate and gift taxes

Capital gains tax is 20% on the sale of property. The seller also pays a real estate transfer tax (RETT) of 1% of the transaction value for properties not exceeding $500,000 and 1.425% for those over $500,000.

Estate and gift taxes depend on the degree of relation and vary from 18% to 40%. Property transferred between spouses who are US citizens or from a foreign citizen to their US spouse is exempt. However, the tax is payable if a US citizen passes or donates property to their spouse, who is not a US citizen.

Income and corporate taxes

Income tax ranges from 10% to 39.6%. The tax rates vary depending on the taxpayer’s marital situation, family income, dependents and married couples filing separate tax returns.

Corporate tax is 15–35%.

Taxable income, USD Tax calculation
Under 9,225 10%
9,226–37,450 $922.50
+ 15% of amount exceeding $9,225
37,451–90,750 $5,146.25
+ 25% of amount exceeding $37,450
90,751–189,300 $18,481.25
+ 28% of amount exceeding $90,750
189,301–411,500 $46,075.25
+ 33% of amount exceeding $189,300
411,501–413,200 $119,401.25
+ 35% of amount exceeding $411,500
Over 413,200 $119,996.25
+ 39.6% of amount exceeding $413,200
Taxable income, USD Tax calculation
Under 18,450 10%
18,451–74,900 $1,845
+ 15% of amount exceeding $18,450
74,901–151,200 $10,312.50
+ 25% of amount exceeding $74,900
151,201–230,450 $29,387.50
+ 28% of amount exceeding $151,200
230,451–411,500 $51,577.50
+ 33% of amount exceeding $230,450
411,501–464,850 $111,324
+ 35% of amount exceeding $411,500
Over 464,850 $129,966.50
+ 39,6% of amount exceeding $464,850

Disclaimer: the information in the above article is for reference and may be subject to change over time. Persons interested in exact calculations should contact a certified tax specialist in this country before purchasing property.

Property buying guide for USA
Article 6 of 6
Tranio’s managers offer advice on buying real estate in the USA
Kseniya Kolesnikova
Kseniya Kolesnikova
Real Estate Expert Tranio in the USA
+44 17 4822 0039
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