Law Over Borders Comparative Legal Guide 2025

INTRODUCTION

The United States imposes taxes and has legislatures and courts at the national, state and local levels. While there are a large number of taxes to consider, the taxes with which this chapter is predominantly concerned are income taxes (which are paid by individuals, estates, trusts, business and other entities, etc. at the federal, state and local levels) and transfer taxes (i.e., estate, gift and generation-skipping transfer (GST) taxes, which are paid by individuals, trusts and estates at the federal and state levels). Rates of taxation can vary dramatically (as will be illustrated in the separate sections below), depending upon whether one lives in (or is an estate, trust or entity located in) a state or city that imposes the relevant taxes. The laws of estates, trusts and property are largely (though not exclusively) imposed at the state level. The federal legislature is in session and passes new laws every year. Some state legislatures are in