United States

United States's Rankings
CategoryRankScore
Overall Rank2162.38
Corporate Taxes2057.32
Individual Taxes2652.74
Consumption Taxes592.3
Property Taxes2847.22
Crossborder Taxes3260.27

The United States ranks 21st overall on the 2021 International Tax Competitiveness Index, the same as in 2020.


Strengths

  • The U.S. provides full expensing for business investments in machinery.
  • The U.S. allows for Last-In-First-Out treatment of the cost of inventory.
  • Corporations can deduct property taxes when calculating taxable income.

Weaknesses

  • U.S. states' sales taxes apply on average only to a third of the potential tax base.
  • The U.S. has a partial territorial system and does not exempt foreign capital gains income-it ranks as one of the most onerous international tax systems of any OECD nation.
  • The real property tax burden is among the highest in the OECD.

Learn more about the tax system in United States

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