United States
| Category | Rank | Score |
|---|---|---|
| Overall Rank | 21 | 62.38 |
| Corporate Taxes | 20 | 57.32 |
| Individual Taxes | 26 | 52.74 |
| Consumption Taxes | 5 | 92.3 |
| Property Taxes | 28 | 47.22 |
| Crossborder Taxes | 32 | 60.27 |
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