Taxes in the United States

 

 

It is imperative to understand a lot of things about US taxation and the social security system when relocating and working in Los Angeles. 

All of the employees working in the US are required to get a Social Security Number. This is primarily for their taxation in the United States. However, for expatriates, it is important to verify with their country of origin first if an international social security agreement is possible to avoid double taxation.

Income Tax

Non-immigrants who are planning to work in the US, on the other hand, must secure a Substantial Presence Test of the Internal Revenue Service to get their current tax status.

The federal corporate income tax is at 20.29%. There are particular professions in LA where the tax rate is fairly mandatory. Most of the tax rate changes are felt by those working in industries such as the auto park, health maintenance, and all other vocational and professional jobs.

The general rule of thumb in the US is that anyone with a $1,000 gross of receipts will be decreased with $5.28 to $5.07.

Personal Income Tax Table

Monthly Income

Tax Rate

Income less than $15,000

15.05%

Income between $15,000 to $20,000

6.15%

Income between $20,000 to $30,000

10.83%

Income between $30,000 to $40,000

9.73%

Income between $40,000 to $50,000

8.45%

Income between $50,000 to $60,000

7.39%

Income between $60,000 to $75,000

8.93%

Income between $75,000 to $100,000

10.49%

Income between $100,000 to $150,000

11.72%

Income between $150,000 to $200,000

4.90%

Income greater than $200,000

6.37%