The USA is a country with fifty tax systems: federal tax up to 37 percent plus zero to 13 percent by state. Salaries are high, healthcare and housing in the metropolises dearer than anywhere in Europe, and tax liability follows the green card, not the address.
The short answer
Highest salaries, highest costs for healthcare and housing. Good for tax in Florida, Texas and Nevada without state tax, laborious everywhere because of worldwide tax liability.
milinia’s take
- Federal tax 10 to 37 percent, state tax zero in Florida, Texas, Nevada, Washington, up to 13.3 percent in California.
- Long-term capital gains above one year: 0, 15 or 20 percent by income, plus a 3.8 percent surcharge from $200,000.
- Green card holders and citizens tax worldwide income, even after returning; exit tax on giving it up.
- Health insurance: $500 to $1,500 a month per adult without an employer, deductibles up to $8,000.
Living and costs
15 percent above Germany on average, in New York, San Francisco and Boston 50 to 80 percent above, in Texas, Ohio or Arizona below. A one-bedroom flat in Manhattan costs €2,900, in Austin €1,400, in Miami €2,000, in Phoenix €1,200. Groceries dearer, restaurants 20 percent dearer with tips, petrol and electricity cheaper, a car essential outside a few cities. Specialist salaries 50 to 100 percent above Germany, holiday 10 to 15 days.
Taxes
Federal tax in seven brackets from 10 to 37 percent from around $610,000, standard deduction around $15,000 per person. Plus the state’s tax: zero in Florida, Texas, Nevada, Washington, Wyoming, South Dakota, Tennessee, Alaska; up to 13.3 percent in California, 10.9 in New York, plus city tax in New York City. Social contributions 7.65 percent for social security and Medicare. Capital gains: short term at the tariff, long term from one year 0, 15 or 20 percent, qualified dividends the same. No wealth tax, estate tax only from around $14 million. Tax liability follows citizenship and the green card: whoever has them taxes worldwide income, even after returning to Germany, with credit.
Property
Manhattan €12,000 per square metre, San Francisco €9,000, Miami €5,500, Austin €3,500, Phoenix €3,000, the Midwest under €2,000. Closing costs for buyers 2 to 5 percent (title insurance, closing costs); the agent’s 5 to 6 percent has traditionally been paid by the seller, negotiable since 2024. Property tax annually 0.5 to 2.5 percent of value by state, highest in Texas and New Jersey. Mortgage rates in 2026 around 6 percent for 30 years fixed. Rental yields 4 to 7 percent, highest in Florida and Texas, without tenant protection. Owners may deduct mortgage interest up to $750,000 of loan.
Gold, portfolio, bank
Investment gold without sales tax in most states, gains taxed as collectibles at up to 28 percent. US brokers are the cheapest in the world, free of fees for residents. German brokers almost always terminate US residents. An account needs a Social Security Number or ITIN and an address.
What emigrants underestimate
Health insurance: without an employer a family policy costs $1,500 to $2,500 a month with deductibles of several thousand dollars, and pensioners only enter Medicare at 65 after ten years of contributions. The tax return is mandatory for everyone, even with an employee salary, and foreign accounts above $10,000 must be reported (FBAR). Whoever gives up the green card pays exit tax above two million dollars of wealth.
Try it yourself
Travel Budget CalculatorCountry, days, people, style: your daily budget and travel fund, with buffer and cash share.Income Tax CalculatorEnter taxable income, read off tax, marginal rate and average rate, with joint assessment.Frequently asked questions
Do I need a tax return in the USA?
Yes, annually by 15 April, even as an employee. The federal return plus the state’s. Software or a tax adviser is common.
Is my German pension taxed in the USA?
Statutory pensions are taxed in the state of residence under the treaty, so in the USA, where social pensions stay partly tax-free. Germany exempts them.
Is Florida really tax-free?
At state level yes: no income tax, no capital gains tax. Federal tax remains, and property tax and hurricane home insurance are high.
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