Tax residency in United States of America
How to become a tax resident — and how hard it is to leave.
How does one become a tax resident of the United States of America?
Tax residency in the United States of America is typically established after 183 days. The country operates under a worldwide tax system.
Common questions
- What is the top personal income tax rate in the United States of America?
- The top personal income tax rate in the United States of America is 37%.
- Does the United States of America have an exit tax?
- Yes, the United States of America has an exit tax.
- What type of tax system does the United States of America use?
- The United States of America uses a worldwide tax system.
How to become a tax resident
Typically after 183+ days of presence in a year — or any of:
- U.S. citizenship (U.S. citizens are U.S. tax residents regardless of where they live)
- Green Card Test – admitted as or becoming a lawful permanent resident (LPR) at any time during the calendar year and not having that status revoked or formally abandoned
- Substantial Presence Test – at least 31 days in the U.S. during the current year AND 183 days over the current year and previous two years, counting all days in the current year, 1/3 of days in the first preceding year, and 1/6 of days in the second preceding year
There is no US golden visa, digital-nomad visa, or direct citizenship-by-investment program, so a wealthy remote worker generally must qualify through standard work or investor categories (such as temporary worker or treaty-investor visas) to live in the US.
How to break residency
hard to leaveEnding U.S. tax residency is difficult because U.S. citizens are taxed on worldwide income regardless of residence, and green card holders remain tax residents until their LPR status is formally revoked or abandoned; even non‑immigrants must actively stay below the substantial presence thresholds or use limited exceptions or treaty tie‑breaker rules to avoid residency.
“You are a resident of the United States for tax purposes if you meet either the green card test or the substantial presence test for the calendar year (January 1 – December 31). If you are not a U.S. citizen, you are considered a nonresident of the United States for U.S. tax purposes unless you meet one of two tests.[5] If you are not a U.S. citizen, you are considered a U.S. resident, if you meet one of two tests for the calendar year (January 1 – December 31). 1. You are admitted to the United States as, or change your status to, a lawful permanent resident under the immigration laws (the Green Card Test), or 2. You meet the Substantial Presence Test (which is a numerical formula which measures days of presence in the United States).[2] You will be considered a United States resident for tax purposes if you meet the substantial presence test for the calendar year.[7]” — Internal Revenue Service (IRS)
Estimate — confirm against the linked sources. See methodology.