The US levies several kinds of taxes and fees on residents and visitors at federal, state and local government levels. Taxes are levied on income, payroll, property, sales, capital gains, dividends, imports, estates and gifts, as well as various fees. The US has seven federal income tax brackets. The average tax rate for high-earners (people earning over $1 million) is 33.1 per cent while it is 10.6 per cent for those who earn less than $10,000.

Anyone who earns an income in the US ought to pay income tax (both at the federal and state levels). Those earning over $6,750 per year must file both federal and state taxes before April 15th of each year.

Then there’s the sales tax, which is charged on purchases. The tax system in this country is quite complex. Sales tax is a state tax and varies from state to state as well as within the state. For example, the state of New York levies a sales tax of 7 per cent while it is just 3 per cent in neighbouring New Jersey. However, while Syracuse (a city in the state of NY) has a 7 per cent sales tax, it is 8 per cent in Albany (the capital city of New York State). Different municipalities within a state can increase the sales tax above the state limit.

There are also other rules surrounding sales tax, such as which items are taxed and which are not. For example, in NY gum is taxed, but milk is not. In NJ food is taxed, but clothes are not. Told you it’s complicated!