Destinations · United States
United States
The E-3 makes America uniquely accessible to Australians, for careers, not tax savings.
Tax regime
Australia treaty
Flight from Sydney
Timezone
How United States taxes youindicative
The US taxes residents on worldwide income: federal brackets from 10% to 37% (2025), plus state income tax ranging from 0% (Texas, Florida, Washington) to 13.3% (California), the state choice moves your rate more than most planning does. Long-term capital gains and qualified dividends get preferential federal rates of 0/15/20%, plus the 3.8% net investment income tax at higher incomes. A comprehensive Australia treaty provides a tie-breaker and credits, and superannuation's US treatment is a notorious grey area. Once you hold a green card, US worldwide taxation follows you even after leaving, with an exit tax for long-term holders who surrender it.
- Salary
- Federal 10, 37% plus state tax (0, 13.3%) plus FICA (7.65% employee side). A US$150k salary in California pays roughly 30%+ combined; in Texas closer to 24%.
- Capital gains
- Long-term (12+ months) federal rate 0/15/20% plus 3.8% NIIT above ~US$200k income; short-term gains at full ordinary rates. States tax gains as ordinary income, California adds up to 13.3%.
- Dividends & interest
- Qualified dividends at 15% (20% top). Australian franking credits are invisible to the IRS, franked dividends are just taxable income with a credit for the AU WHT.
- Crypto
- Crypto is property: every disposal (including spending and swaps) is a capital gains event, short-term gains at ordinary rates, long-term at 0/15/20%. Broker reporting to the IRS is now systematic.
- Social security
- FICA (6.2% social security capped + 1.45% Medicare uncapped) applies to US employment; a totalisation agreement with Australia prevents double super/social security in most postings.
Australia has a tax treaty with United States
A treaty gives you two things that matter. First, a tie-breaker: if both countries claim you as a resident, the treaty cascade (permanent home → vital interests → habitual abode → nationality) decides who wins. You can’t simply be fully taxed twice on the same income. Second, reduced withholding on Australian-source income you keep: unfranked dividends at 15% and interest at 10% instead of the default non-treaty rates.
Walk your own facts through the cascade with the Treaty Tie-Breaker tool.
Visa pathways
Every pathway carries a tax-residency consequence, the row most visa guides leave out. A visa gets you in; it doesn’t decide who taxes you.
E-3 visa (Australians only)
skilledindicativeThe Australian-exclusive treaty visa: a degree plus a "specialty occupation" job offer. 10,500 annual quota that has never once filled. Renewable indefinitely in 2-year increments; spouse gets open work rights.
- Skilled occupation required
- Employer sponsor required
- Family can come
Timeline: ~2 months from application to arrival
Tax residency: Meeting its conditions makes you tax resident there, usually what you want, because a genuine new tax home is your strongest fact against Australia.
The single biggest practical advantage Australians have in global mobility: H-1B outcomes without the lottery, often approved at a consulate in weeks. No dual-intent though, chasing a green card on an E-3 needs careful sequencing.
E-2 treaty investor visa
businessindicativeFor Australians investing "substantial" capital (commonly US$100k+) in a US business they direct. Renewable indefinitely while the business runs.
- Investment $150,000+
- Family can come
Timeline: ~4 months from application to arrival
Tax residency: Meeting its conditions makes you tax resident there, usually what you want, because a genuine new tax home is your strongest fact against Australia.
Australia qualifies under the treaty, so both E-3 (employees) and E-2 (owners) are on the table. The business must be real and non-marginal; spouse gets work authorisation.
L-1 intracompany transfer
workindicativeTransfer within a multinational after 12 months employed abroad; managers/executives get a green-card fast lane (EB-1C).
- Employer sponsor required
- Family can come
Timeline: ~4 months from application to arrival
Tax residency: Meeting its conditions makes you tax resident there, usually what you want, because a genuine new tax home is your strongest fact against Australia.
Dual-intent, so green card pursuit is safe. The classic route for Australians in big-company roles.
Employment green card (EB-2/EB-3)
skilledindicativePermanent residence via employer sponsorship (PERM labour certification); Australia's queue is current, unlike India/China.
- Skilled occupation required
- Employer sponsor required
- Family can come
Timeline: ~18 months from application to arrival
Tax residency: Meeting its conditions makes you tax resident there, usually what you want, because a genuine new tax home is your strongest fact against Australia.
A green card is a tax status, not just an immigration one: worldwide US taxation continues wherever you live, and surrendering after 8 years can trigger the expatriation exit tax.
EB-5 investor green card
goldenindicativeUS$800k into a targeted-employment-area project creating 10 jobs; permanent residence for the family.
- Investment $1,200,000+
- Family can come
Timeline: ~30 months from application to arrival
Tax residency: Meeting its conditions makes you tax resident there, usually what you want, because a genuine new tax home is your strongest fact against Australia.
Slow, capital at genuine risk, and project selection is everything. The direct route for wealth without a US employer.
What Los Angeles costsindicative
Typical expat defaults in AUD, the same figures the Break-Even Calculator pre-fills for United States. Treat them as comparison-grade, not budget-grade.
| Rent, family home in Los Angeles (per month) | est. $7,500indicative |
| Rent, 1, 2br couple/single (per month) | est. $4,500indicative |
| International school (per child, per year) | Free / not applicableindicative |
| Private health, family (per year) | est. $20,000indicative |
| Private health, single (per year) | est. $7,000indicative |
| One-off relocation (movers, flights, deposits) | est. $30,000indicative |
| Return flight home (per person) | est. $2,000indicative |
| Day-to-day cost index vs Sydney (ex-rent) | 115%indicative |
Honest downsides
- This is a move for career and earnings, not tax, combined federal + state + FICA in a coastal city will roughly match or exceed your Australian rate.
- Healthcare is tied to employment and ruinously expensive without it; a family plan's premiums and deductibles can exceed A$25k/year of exposure.
- The IRS relationship is sticky: green card holders are taxed on worldwide income for life until formal surrender, and FBAR/FATCA reporting on Australian accounts carries brutal penalties for innocent omissions.
- Your superannuation is a US tax problem: no treaty article clearly protects it, and treatment (foreign grantor trust? employee trust?) is unsettled, specialist advice is non-optional.
- Gun violence, litigation culture and the cost of failure (no safety net) are real quality-of-life deductions Americans price in and Australians don't.
What most people miss about United States
- The substantial presence test can make you a US tax resident before your visa story matures, day counts across three years matter, and residency starts mid-year with worldwide scope.
- Australian franked dividends lose their franking credits entirely; the IRS taxes the dividend and credits only actual AU withholding, typically nothing on fully franked shares.
- Australian managed funds and ETFs are usually PFICs in US hands: punitive tax and reporting that can destroy returns, restructure the portfolio before you become a US person, not after.
- Selling your Australian home while a US resident can trigger US capital gains tax on it, the US main-residence exclusion is capped at US$250k/500k and your Australian exemption means nothing to the IRS.
Run your numbers for United States
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