# Australian moving to Houston



## Projects2017 (Apr 12, 2016)

Hi There;

I am negotiating a transfer to Houston from Australia and is very hard to understand what would be a good salary in Houston.
I believe my offer would be between 90k to 110 k per year (USD), and any other benefits I might be able to add in.

My questions are:

•	What will be a good area to live that will not break the bank? (is only my wife and I)
•	Do companies usually provide health cover? This is a big worry in US as per what I have been reading.
•	Currently I have a car lease by the company, so would be better to have a car allowance or I will be paying too much tax as this will be considered a fringe benefit?
•	How much would I need to set up a new house/apartment?Do I need to pay a bond to rent a property?Do I need to pay a bond to connect utilities?
•	I am still working out a budget, does anyone have a website or information on actual cost of living in Houston?
•	The 401K is the same as our super over here, correct?
•	Let’s say I have an offer of 100k, how much would I pay in tax?
•	I also was told that if the tax amount in Australia is higher I will have to pay the difference.

I am still looking on line for most answers to these questions and I am sure I will have some more, but any assistance will be appreciated.

Thank you for all the help.


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## twostep (Apr 3, 2008)

Health Insurance
Your employer needs to explain the options being offered in depth. Otherwise you will have access to Obamacare or the open market.

Housing
Houston is not small-town-USA. Contact co-workers at the Houston location; work your way from the office outward in a reasonable commute distance.

Deposits
You have no US credit history. Rental, utilities, phone, ... You will pay deposits.

Household
No one can tell you what setting up your household will cost. From stocking the fridge to blinds, house plants, small appliances. Will your employer ship household goods both ways?

Cost of living
Google is your friend to find sites providing such information. The last three states/cities we lived in everything was lumped together so totally useless. We have some users here who are or were living in the Houston market.

Vehicle
Depending on your employer set options will be in place. What are your plans for transportation for your wife?


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## Bevdeforges (Nov 16, 2007)

Have only been to Houston once, so can't give you too much on the area itself but a few general comments to enlarge a bit on what twostep has already told you:



> •	What will be a good area to live that will not break the bank? (is only my wife and I)


twostep's suggestion is an excellent one. The one time I was in Houston I was really freaked out by the mess that is rush-hour traffic. From all accounts, it's pretty much the same, even these many years later. Ask around among your colleagues, as they may be able to suggest areas to live where you won't spend half your day sitting in traffic.



> •	Do companies usually provide health cover? This is a big worry in US as per what I have been reading.


Generally speaking, yes. But you should ask for the specific terms and conditions. Health coverage in the US is very different from the same concept elsewhere in the world and definitely will not "cover" all your health care costs. 


> •	Currently I have a car lease by the company, so would be better to have a car allowance or I will be paying too much tax as this will be considered a fringe benefit?


If your employer provides you with a car - whether by a lease or by providing an allowance - that is added to your compensation for tax purposes.


> •	The 401K is the same as our super over here, correct?


As I understand it, the 401K is the same principle as the super in Oz, but some of the details are rather different - especially how the two countries treat things for their respective tax systems.


> •	Let’s say I have an offer of 100k, how much would I pay in tax?
> •	I also was told that if the tax amount in Australia is higher I will have to pay the difference.


Until you get to know the US tax system it's really difficult to predict how much tax you'll pay on a fixed amount. Big thing is that in the US you are expected to declare your worldwide income, not just what you make in the US - and if you already have an Australian super annuation fund, the earnings on that will have to be declared (and probably some tax paid on those earnings).

If your employer is offering you a tax equalization package, then their accountants will handle that for you. Normally under an equalization package, they work it out so that you wind up paying roughly the same tax you would have paid had you stayed put in Australia (hence the notion that, if Australian taxes would have been higher, you pay the difference). But check with your employer if they are offering any kind of tax services as part of your package. (If this is a permanent transfer, the tax services may only be for the first couple of years.)
Cheers,
Bev


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## BBCWatcher (Dec 28, 2012)

To expand on Bev's last point, there's tax equalization (which would have to include some tax preparation assistance), and tax preparation assistance by itself. It'd certainly be nice if your employer is offering at least the latter.

Tax equalization might or might not be a good thing for an Australia to U.S. move. Tax equalization means that your employer designs a compensation offer (and adjusts it) so that your take home pay in the U.S. is equal to what your take home pay is in Australia, perhaps with a cost of living adjustment applied. If the tax rate ends up being lower in the U.S. (could be!) then your employer gets a cheaper employee (you), i.e. pockets the tax savings. If it's the other way around, then you do better (or at least no worse).

One thing I'd check is whether you'll shift over to U.S. Social Security system and make payroll tax contributions to that system. My best guess is that'd be a good move in order to (fairly quickly) become eligible for U.S. Social Security retirement (and spousal) benefits when the time comes to collect. The U.S. and Australia have a social security treaty, and ordinarily getting a couple years (or more) of U.S. earnings history works out very well indeed.


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## Projects2017 (Apr 12, 2016)

Hi Guys;

Thank you for all the information.

Looks like I need to do a lot more research to better understand where I am getting myself into.
The tax amount will certainly play a big part on my negotiations. One information I received was that on L1 visa (non-resident) I would not pay as much tax, need to confirm.

In relation to the housing, my intention was to pick few areas so I could compare the rent and try to set up a budget. 
The set was more towards the utilities, when you move into a house what would be the approx cost to set it up (water,energy,gas, phone, cable tv, internet...)

Once again thank you for the assistance.


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## twostep (Apr 3, 2008)

You seem to have some strange sources of information. Why would you pay less tax when you are in the US on an L1? IRS.gov is the official source

Apartments often times have some utilities such as trash included. With a house you are looking at yard maintenance and watering or a sprinkler system and the level of upkeep will probably be in the rental agreement. 

Our house in DFW was a 2010 and considered high energy efficient. Gas, water, waste, power for two people, two cats averaged 500+/mo at 64F in winter and 76F in summer while we heated the living area with a huge gas fire place; gas is cheap in the area. Land line, two cell phones, cable tv, DSL 275/mo. Yes, BBCWatcher will come up with this is not necessary but if you are in an area with ATT only and need reliable service that is it. Here the only option is Comcast with a 2-year contract and it goes out every time a tornado touches down or. a frack quake shakes the ground.

Every utility provider has different fees and schedules. Sometimes you can pick which one you go with. Sometimes you do not have a choice. I have seen flat delivery charges plus tiered usage, discounts for efficient equipment, incoming and outgoing water, ... You name it. Your power usage will spike in summer and going by the last few winters it may get cold again in 2016/2017. Google will show you providers. Their sites or an email to customer support will get you some info on hook up and fees.


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