Rental Income Tax (Effective) in United States compared to North America
United States: Rental income taxes (%).
The tax levied on the average annual income on a rental apartment/property in the country.
- Gross rental income is /US$1,500/month
- The property is personally directly owned jointly by husband and wife
- Both owners are foreigners and non-residents
- They have no other local income
- There is no mortgage, i.e., no loan is taken for the purchase
In arriving at the pre-tax profit figure, we calculate, and deduct:
- Depreciation / capital allowances if available. We assume a value for the apartment based on our valuation research, and depreciate on this basis.
We deduct any other costs which a landlord normally pays - management charges, buildings insurance, realtor agency fees, etc. We either choose a standard percentage deduction (if available) or typical actually incurred costs. If real estate tax is normally payable by the landlord, we deduct that.
Our rental income tax figures are provided by accountants (see list of contributors). For more details see the Data FAQ.
Source: Global Property Guide Research, Contributing Accounting Firms
USA has excellent house price statistics. The Federal Housing Finance Agency (FHFA) produces quarterly and monthly house price indices for all 51 states. Standard and Poor's also provides a monthly home price index, composite of 10 cities. Quarterly median prices, affordability index, house sales and construction activities are from the National Association of Realtors (NAR). Rent statistics are from the US Census Bureau.
Excellent economics statistics are from the Bureau of Economic Analysis and Bureau of Labor Statistics.