# Relocating to Houston



## new_me (Aug 2, 2012)

Hi,

The company I work for might be relocating me from Dubai to Houston and I would like to understand a bit more about living there. I am single, no kids, no family

- what is the income tax that I would need to pay. I understand it is according to salary. What is it for above 100k/ yr and what is for less than 100k

- health insurance: is it usually provided by the employer or that's mine to take care of. And he much would that be. 

- what other taxes I would have to pay

- i am planning to rent an apartment probably very close to center where are offices are. Apart from rent and utilities what other things I would have to pay and I should take in consideration.

I am trying to understand all these as when I have an offer in hand I can have an idea of the expenses. 

Thanks in advance.


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## bellakem (May 20, 2012)

Hi,
I live in Houston. Good thing is there is only federal tax here..no state.. Looking at my paycheck, my tax deducted is roughly 20% of gross pay. There is also FICA which is 5% and social security, mine being 104 dollars monthly. My health care benefit for coverage for me and my husband is 170 dollars per month, which includes dental, medical and vision..so l would guess yours would be about 60% of that. That covers all your taxes..
Hope it helps..


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## spgti (Aug 3, 2012)

new_me said:


> Hi,
> 
> The company I work for might be relocating me from Dubai to Houston and I would like to understand a bit more about living there. I am single, no kids, no family
> 
> ...


I have resided at Houston over 30 years, I hope I could answer your questions.

1. Texas is one of the three states that have no state income tax, we pay only federal tax, therefore you have more disposable money to save or to spend.

2. For what percentage of income tax to pay to federal, you may go to irs.org and you should get enough information there, roughly around 15 to 20%.

3. You may get health insurance through your employer as group insurance, and you may be required to pay couple hundreds per month, it depends on the plan you choose, and the deductible (out of pocket) amount. By joining a group insurance, you will be covered automatically and immediately without exclusion of existing condition.

4. The other tax you may pay would be auto registration fee, which is around $65 per year.

5. Rent for one bedroom/one bath condo/apartment near downtown could be around $800 to $1200 per month plus electricity. Other utilities like water, basic cable TV will be included in general.

6. you are welcome to contact me before or after arrival. Welcome to Houston.


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## Midlifer (Jul 24, 2012)

Houston is fairly cheap. Lots of good restaurants, easy shopping and if you like tons of nightlife. 

Insurance is partially covered by most employers and with Obamacare, pre- existing conditions are also covered. 
Houston has very little mass transit and is huge, 700 square miles +. You need a car. That means you also need insurance ($100/mo), a license and registration ($65/year). 

$100k US is a very nice salary and you'll live quite well. Keep in mind that Texas is a BIG state, driving between cities can be significant - 3 hours to San Antonio, 3 to Austin, 5 to Dallas and 12 to El Paso.


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## new_me (Aug 2, 2012)

spgti said:


> I have resided at Houston over 30 years, I hope I could answer your questions.
> 
> 1. Texas is one of the three states that have no state income tax, we pay only federal tax, therefore you have more disposable money to save or to spend.
> 
> ...


Fantastic. This is very helpful. I will have a look on IRS website too.
Thanks a million for the answers.


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## new_me (Aug 2, 2012)

Midlifer said:


> Houston is fairly cheap. Lots of good restaurants, easy shopping and if you like tons of nightlife.
> 
> Insurance is partially covered by most employers and with Obamacare, pre- existing conditions are also covered.
> Houston has very little mass transit and is huge, 700 square miles +. You need a car. That means you also need insurance ($100/mo), a license and registration ($65/year).
> ...


This is good news. I shall wait and see what the offer is and if I can afford the move.
Thanks again.


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## new_me (Aug 2, 2012)

bellakem said:


> Hi,
> I live in Houston. Good thing is there is only federal tax here..no state.. Looking at my paycheck, my tax deducted is roughly 20% of gross pay. There is also FICA which is 5% and social security, mine being 104 dollars monthly. My health care benefit for coverage for me and my husband is 170 dollars per month, which includes dental, medical and vision..so l would guess yours would be about 60% of that. That covers all your taxes..
> Hope it helps..


Yes it does help. Thanks a lot.


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## new_me (Aug 2, 2012)

new_me said:


> Fantastic. This is very helpful. I will have a look on IRS website too.
> Thanks a million for the answers.


I have one more question. What about pension plans? How does it work?


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## new_me (Aug 2, 2012)

I have one more question. What about pension plan? How does it work?


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## Bevdeforges (Nov 16, 2007)

new_me said:


> I have one more question. What about pension plan? How does it work?


Nothing is standard in the US. Depends on the company.

Most popular form of pension plan these days is a 401K, where you set aside a portion of your income, with the employer matching a portion of what you contribute. Like the US IRA (Individual Retirement Plan) this is a "tax deferred" savings plan. You deduct your contribution to the plan, then pay regular US income taxes on the amounts you withdraw after the age of 59 1/2. 

But not all employers offer 401k plans.
Cheers,
Bev


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## txalicia1 (Aug 5, 2012)

Is there any idea where in Houston your company is? Depending on your location, rent, car insurance, etc, can be significantly cheaper. Example: Rent for a 2 bed/2 bath can be over $1500/month in downtown...we live about 15 miles away in the suburbs and pay that much for a 2500 sq. ft. house. On the other hand, if your company is headquartered in The Woodlands, you will pay like crazy for an apartment in the business district.


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## Ozzieone (Feb 17, 2012)

*GALLERIA? for 1st month?*

Hi All 

Great answers everyone, thank you so very useful for someone moving to Houston. 

Hope someone can advise - 

I'm looking at GALLERIA area for temp furnished accomodation? 
I need to find somewhere for the first month - just a one bed apartment 

1) Priority is safety, as I won't have a car initially I need to be able to get around by public transport! or at least do some shopping. Can I do this safely from here? Or do you suggest other area? 

2) Will parking be safe for my husbands car - I'm concerned seeing so many reports of car breakins! Is it really that bad? 

3) Any recommendations - or just as useful who to avoid? for furnished 1 bed apartment for 1 month initially? ( or till we find somewhere) What should we be paying? 

Look forward to hearing from you - we'll be there end of the month! 
All suggestions greatfully rec. 

- Goes around , comes around - 

Thanks:


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## new_me (Aug 2, 2012)

txalicia1 said:


> Is there any idea where in Houston your company is? Depending on your location, rent, car insurance, etc, can be significantly cheaper. Example: Rent for a 2 bed/2 bath can be over $1500/month in downtown...we live about 15 miles away in the suburbs and pay that much for a 2500 sq. ft. house. On the other hand, if your company is headquartered in The Woodlands, you will pay like crazy for an apartment in the business district.


It's around Allen Parkway. Was thinking of something around that area and I saw that its more expensive but I understand traffic can be pretty bad at rush hours???? I am ok with a 30 min drive but not more than that.


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## Midlifer (Jul 24, 2012)

new_me said:


> It's around Allen Parkway. Was thinking of something around that area and I saw that its more expensive but I understand traffic can be pretty bad at rush hours???? I am ok with a 30 min drive but not more than that.


My ex gets from Memorial to downtown in about 30 minutes. Look along I10, nice wide freeway and barring something REALLY bad it seldom slows down. If you have kids Spring Branch has some great schools including an IB DP & MYP school (Westchester).


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