Relocation intelligence

🇺🇸 Moving to United States: tax, residency and cost of living

Citizenship-based worldwide taxation

Thinking of moving to United States? Here is the tax, residency, property and quality-of-life picture in plain numbers, with sources.

Key facts

Top income tax
37%
Corporate tax
21%
Capital gains
20%
Wealth tax
No
Inheritance tax
Yes
Cost of living index
71.7
Safety
5/10
Internet quality
8/10
Visa-free destinations
186
Foreigners can own property
Yes
Residency in
0 months
Citizenship in
0 years

Taxes

The US taxes citizens worldwide even after emigration. The federal top rate is 37% (2025); combined with state tax it can reach about 54% in California. FATCA requires foreign banks to report US account holders.

Residency and visas

For departing US citizens: renouncing citizenship costs $2,350 in consular fees and requires full tax compliance. The exit tax applies to those with net worth above $2 million or average annual net income tax above $201,000 (2025 indexed threshold).

Property ownership

Foreigners can generally own real estate in the US. Some states restrict foreign ownership of agricultural land (e.g. Texas, Florida). FIRPTA withholds tax from foreign sellers of US real property.

Cost of living and quality of life

The US has high living costs in coastal cities but lower costs inland. Life expectancy is 77.5 years (WHO 2023). Healthcare is private and expensive without insurance; safety scores vary greatly by city.

Passport and mobility

The US passport provides visa-free access to 186 countries (Henley 2025). However, US citizens who emigrate retain their passport and US tax obligations until they formally renounce citizenship.

Residency and visas

  • EB-5 Immigrant Investor Program · €800,000 · Residency in 2 years
  • H-1B Specialty Occupation Visa · Residency in 6 years
  • O-1 Extraordinary Ability Visa · Residency in 3 years

Why people move to United States

  • Worldwide tax liability after emigration

    US citizens remain liable for tax on worldwide income after departure. Formal renunciation of citizenship is the only full solution but triggers exit tax for wealthy individuals.

  • High combined tax burden in certain states

    In states like California and New York the combined marginal rate (federal + state + FICA) can exceed 50%. This drives high earners toward tax-friendly states or abroad.

  • FATCA obligations complicate banking abroad

    FATCA requires foreign financial institutions to report US person accounts to the IRS. Many foreign banks refuse US citizens as clients, complicating financial planning after emigration.

See how United States scores for your situation

Get your personal Freedom Score and a full relocation comparison based on your income, family and goals.

Calculate my score

Sources

Other destinations

AndorraUnited Arab EmiratesAfghanistanAntigua & BarbudaAnguillaAlbaniaArmeniaAngolaArgentinaAmerican SamoaAustriaAustralia