Guide to United States Taxation

How Taxes Work in America: income taxes, sales tax, estate taxes, capital gains taxation, tax residency, Italy - America Treaty, taxation of individuals and corporations. A summary of the main articles on American taxation published over time on the ExportUSA website

NOTE: Contact us for updated federal income tax rates for individuals in America

A true practical guide on American taxation: The section of the ExportUSA website dedicated to the topic "taxes in America" contains over a hundred pages covering various aspects of the U.S. tax system. Always with a practical approach and using a non-expert-friendly language. On this page, we offer commented links to the most important topics for those interested in understanding how taxes work in the USA. The guide nature of this page is completed with tax rates for corporate and individual income for the 2019 fiscal year and the main deadlines of the American tax calendar.
 

Federal Tax Rates for Individuals in America

Update: United States Federal Income Tax Rates 2026
 

Single Taxpayer Return

• Income from $0 to $10275 = 10%
• Income from $10276 to $41775 = 12%
• Income from $41776 to $89075 = 22%
• Income from $89076 to $170050 = 24%
• Income from $170051 to $215950 = 32%
• Income from $215951 to $539900 = 35%
• Income over $539900 = 37%

Joint Return

• Income from $0 to $20550 = 10%
• Income from $20551 to $83550 = 12%
• Income from $83551 to $178150 = 22%
• Income from $178151 to $340100 = 24%
• Income from $340101 to $431900 = 32%
• Income from $431901 to $647850 = 35%
• Income over $647851 = 37%

Standard Deduction and Calculation of Taxable Income for Individuals in the United States

2026 Update:

In addition to tax rates and income brackets, the IRS has announced other updates regarding the 2026 individual tax return in America:

• The Standard Deduction is now $16100 for single taxpayers and $32200 for joint filers;
• The Gift Exclusion increases by $1000 to $19000 for 2026;
• For American taxpayers living abroad, the Foreign Earned Income Exclusion is now $132900

The federal tax system grants an annual standard deduction to individuals. To calculate the taxable income for individuals for tax purposes, the standard deduction must be subtracted from the gross income as follows:

• Single Taxpayer Return: standard deduction of $12950
• Joint Return: standard deduction of $25900

Example:
In a married couple, the husband has an annual gross income of $70000 while the wife has an annual gross income of $120000. The total annual gross income of the family is therefore $190000 with part of the income taxed at a 24% rate.

Calculation of taxable income for tax purposes:
$190000 - $29900 = $160100
The maximum tax rate on the taxable income drops from 24% to 22%.
 

Corporate Taxation in America

• Corporation: taxed at a flat rate of 21%
• LLC: tax rates for LLCs are the same as those for individuals. 

Main Tax Deadlines in the United States

Update: 2026 Tax Calendar and Deadlines for the United States
 

• Individual tax return: April 15
• Corporate tax return: April 15
• Estate tax return: within 9 months of death
• Sales Tax return: usually every three months [exact day varies by state]
• Estimated Tax return:
  - March 15
  - June 15
  - September 5
  - December 15
   
• Form 1099 submission: by January 31
• Withholding tax return: by March 15
• Employee payroll tax return:
  - April 30
  - July 31
  - October 31
  - January 31
   
• Payment of withholding tax on the sale of real estate held by non-residents [FIRPTA]: within 20 days of the sale of the property.

Main Topics of the ExportUSA American Taxation Guide

• Who needs to file a tax return in America?
  A frequently asked question: understanding when and if you need to pay taxes in America and on which income. The situation changes depending on whether the income is produced in America or Italy and whether the person filing is a U.S. or Italian tax resident.
• Tax Residency in the United States
  This is a continuation of the previous topic: American tax residents must file a return for worldwide income.  
• Federal and State Taxation on Corporate Income
  It's important to remember that the United States has a two-tier tax system: federal and state [and often local as well]  
• Italy - America Treaty to Avoid Double Taxation
  The treaty rewritten from the perspective of an Italian tax resident who has earned income in America: a much easier read. 
• Guide to Sales Tax
  Sales Tax is "the" quintessential form of indirect tax in America.  
• Sales Tax Rates
  Sales Tax is managed at the state level, so each state applies its own sales tax rates.  
• The 2019 American Tax Reform. The so-called Trump Reform 
  The Trump Reform, which went into effect with the 2018 fiscal year, significantly changed the American tax landscape.  
• Taxation of Real Estate Investments
  Investing in the American real estate market is a great investment, and this article explains how taxation works.  
• Estate Taxes
  Unfortunately, there comes a time to pay these taxes too. The Italy - America Treaty for Regulating Estate Taxes is very favorable to Italian tax subjects.  
• Tax Return for the 2019 Fiscal Year
  Rates and practical guidance.  
• Importance of Tax Planning Before Acquiring a Green Card
  Becoming a U.S. tax resident involves a radical change in tax calculation and payment.  
• Property Tax: The U.S. Equivalent of the IMU
  There is also an IMU in the United States.  
• The NEXUS: Income Attribution and Taxation
  In the United States, the concept of Nexus prevails over "permanent establishment"  
• Taxation of Capital Gains
  Tax treatment of capital gains from the sale of real estate, stocks, or other types of assets.  
• Taxes and LLC
  The Trump Reform introduced significant changes in the way LLC income is taxed.  
• Single-Member LLCs
  Since 2015, new compliance rules for this type of company have been established.  
• Dual LLCs
  Another variety of LLC that may offer some tax advantages.  
• Taxation of Foreign Dividends in Italy
  Italian taxation on foreign-sourced dividends received by corporations is very favorable.  
• Taxes on Employee Income
  The taxation of employee income in America is very favorable.  
• Withholding Tax in America
  In American taxation, the functioning of withholding taxes is quite complex.  
• Form 1099 for Expense Reporting and Cost Deductibility. The 1099 is essential for cost deductibility in American companies.
• Taxes on Online Sales
  How are incomes from ecommerce taxed?  
• FATCA Declaration
  A declaration that does not involve tax payment but carries heavy penalties for non-compliance. 

DISCLAIMER

The information contained in this article does not constitute legal advice or professional consultancy of any kind; it is provided solely as general, explanatory information. Please also note that ExportUSA is neither a law firm nor an accounting firm. We strongly advise against making decisions based solely on the content of this page, as the information provided may be outdated or contain inaccuracies. Readers should always seek guidance from qualified professionals before acting on any information presented here.

Contact us for any tax consulting needs regarding the United States