USA Law and Practice Contributed by: Diana Zeydel, Marc Selden, Benjamin Babcock and Brian Smith, Greenberg Traurig, LLP
Greenberg Traurig, LLP 333 SE 2nd Ave #4400 Miami FL 33131 USA Tel: +1 305 579 0500 Email: ZeydelD@gtlaw.com Web: www.gtlaw.com/en
1. Tax 1.1 Tax Regimes Federal Taxes
State-Level Taxes State tax regimes vary. Most states (and some cities) impose a separate, individual income tax, although several – including Florida and Texas – do not. Certain states impose separate estate and inheritance taxes, with Connecticut being the only state to impose a sep - arate gift tax. State and local property and sales taxes are common and may represent significant additional tax burdens for private clients. 1.2 Exemptions For 2026, the lifetime exemption is USD15 million per individual (both for gift and estate taxes, computed in the aggregate, and for GST tax), indexed for inflation annually. Non-resident, non-citizen individuals receive an estate tax exemption of USD60,000 and no gift tax exemption, unless modified by an applicable tax trea - ty. The top rate for all federal wealth transfer taxes is 40%. Married individuals may use portability to “trans - fer” any unused estate and gift tax exemption (but not GST exemption) to a surviving spouse at death. Individuals are afforded the ability to give up to USD19,000 per person to an unlimited number of indi - vidual recipients without utilising any of the lifetime gift tax exemption. Payments made directly to medi - cal providers and to educational institutions for tuition are outside the gift tax regime and do not result in the imposition of gift tax or use of an individual’s lifetime gift tax exemption. Charitable gifts made to qualifying US charitable organisations are subject to a 100% charitable deduction for gift and estate tax purposes.
The US has a comprehensive federal tax system that affects individuals, trusts, estates, companies and charitable organisations. The federal taxes relevant to private clients are the US income tax, estate tax, gift tax and generation-skipping transfer (GST) tax. US citizens and individuals who are deemed resi - dents (domiciliaries) for US tax purposes generally remain subject to federal wealth transfer taxes on their worldwide assets, regardless of where they physically reside or where their assets are located. US citizens and tax residents are typically taxed on their world - wide income. The highest federal individual income tax rate is currently 37%, while long-term capital gains are generally taxed at a maximum rate of 20%. There is an additional 3.8% tax on certain assets generating passive income, known as the net investment income tax. Non-resident, non-citizen individuals are generally subject to US income tax only on their US-source income, subject to an applicable statutory withhold - ing regime and any applicable tax treaty provisions. The US does not provide a remittance basis of taxa - tion. Non-resident, non-citizen individuals are gener - ally subject to US gift tax on transfers of US tangible personal property and real property, and are subject to US estate tax on all US situs assets, whether tangible or intangible.
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