# Move to texas, tax liability question



## rotax (Dec 7, 2011)

Hi,

I am considering a move to work in Texas, i am British Citizen, Currently Expat in Spain. Now I have fairly low tax liabilities at the moment and my potential move will not only come with a salary change but also with US tax income tax.
How much tax would you expect to pay on the following salary ranges
$150k = Tax of ?
$200k = Tax of ?

Based on a Married couple with two young kids. one school age other is pre school?

I used website deal to check but , US taxes and write off's seem fairly complicated Animals. So i thought i would ask some real people.

Also any inform on the Education system and schools in Houston would be good
My son has been in An English School in Spain so is still on Brit curriculum.

Thanks


----------



## Crawford (Jan 23, 2011)

rotax said:


> Hi,
> 
> I am considering a move to work in Texas, i am British Citizen, Currently Expat in Spain. Now I have fairly low tax liabilities at the moment and my potential move will not only come with a salary change but also with US tax income tax.
> How much tax would you expect to pay on the following salary ranges
> ...


Not knowing your own particular circumstances I would work on 28% marginal tax rate on the figures you have quoted and then take into consideration that you will be paying premiums for medical insurance in addition.

The costs for medical insurance you get from your prospective employer


----------



## twostep (Apr 3, 2008)

Well - TX does not have Personal State Income Tax. You will only benefit from that if you do not own real estate which is taxed by several entities (we pay about 5% of purchase price). The rest you can work through at irs.gov. Give or take 20-25%.


----------



## rotax (Dec 7, 2011)

Thanks,

i would be looking at renting initially until i see how life works out there and the job etc. If after a couple of years i waned to make it a more permanent arrangement i would look at buying property.
Looks like $2k or bait over a month rents you a decent place in Houston suburbs .
I was surprised to see that having a wife and kids still gets you a write-off in the USA, the UK gives nothing back! And higher rate is 40 - 45% tax!

Sounds like a more reasonable tax situation in the USA.

I wil look at the IRS site once i get a final package for the position and see how i stand on take home... I'm still waiting for there best offer , whatever it is its a cut its just a case of how much and can i afford it


----------



## twostep (Apr 3, 2008)

rotax said:


> Thanks,
> 
> i would be looking at renting initially until i see how life works out there and the job etc. If after a couple of years i waned to make it a more permanent arrangement i would look at buying property.
> Looks like $2k or bait over a month rents you a decent place in Houston suburbs .
> ...


income is not only gross minus tax. health care will not be inexpensive. 2k may get you a nice place in the burbs but are you ready for a texas sized commute? run some numbers on groceries. some of it is almost scary. gas may be sold by the gallon and runs around 3-4$ but how much will you need? no us credit history means deposits for utilities and higher car insurance ...


----------



## rotax (Dec 7, 2011)

cheers for the info,

The medical should not be a big deal, my employer covers my whole family at the moment for med and dental as an expat worker so would imagine its the same as US resident.

Gas runs at 1.40 GBP per Litter in UK and around 1.30 Euro in europe. So $3.50 a gallon is no big deal for me after being used to the rip of that is europe, same for house keeping type groceries it cost the earth in europe.
One thing i would like to know is what sort of commute i would be looking at to get to say Galleria / Buffalo speedway area from a Nice suburb with good schools and a decent 4 bed house with a pool for $2000 cpm. Or would i need to up the budget and live closer to town?

If so where would you choose? Schools are a big factor the better they are the happier i will be. primary education as my eldest is 6 at the moment.


----------



## BeenAround (Feb 5, 2012)

[/QUOTE]

Texas has no State tax however sales taxes can be as high as 8.25%.

At those salary ranges (similar to ours) expect to pay around 35%.

Please bear in mind however that there are other huge costs to consider...

Health Insurance - By the time the premium is paid and other costs such as out of pocket expenses, co-pays, etc. you could spend as much as $15,000 per year for a family of 4. Also, bear in mind that any pre-existing condition could void your insurance or result in waiting times of 2 years.

Property Taxes (if you purchase a home) - anywhere from $3k to $15k depending on the house you purchase.

Rental costs are quite high in Texas due to the high property taxes, expect to pay around $1,600 per month minimum.

Purchase of a motor vehicle is expensive because you have to pay at least 6.25% sales tax.

Hope this helps.


----------



## twostep (Apr 3, 2008)

rotax said:


> cheers for the info,
> 
> The medical should not be a big deal, my employer covers my whole family at the moment for med and dental as an expat worker so would imagine its the same as US resident.
> 
> ...


Wait until you bought dairy products or fresh vegetables/fruit. We switched from beer to wine as TX has a stranghe tax on malt everages. A six-pack of "college swill" un DFW rund you $10. Merlot is no punishment for me:>)
It is your call. Commute or up the budget. Draw a circle from your point of employment and see what you find. Then drive it during your normal hours, drive it during off hours such as school lets out and late at night. You will spend the first week or so in a hotel so check out your prospective neighborhoods. Where do trains run, where are flight patterns (small airports can be a nuisance), is there a school in the back yard (you do not want to live close to a marching band's training ground). Nice suburb for one is gruesome for someone else. Even when renting - ask for records of previous utility useage. Our house is one year old and pretty much top of the line 4 bedroom. Last power bill was close to 300$; in summer at 115F it was hefty. Google Houston school district and you will be able to request official curriculum records and school test scores for schools you consider. Your residence address determins the public school your children attend.


----------

