Moving to the US from the UK

[seanjoe 1]

Hi All,

Not sure if this has been posted, but I wanted to start a topic on how life compares when moving from the UK to the US. I have lived here for almost 10 years now, and am on the brink (hopefully) of moving to the USA. I wanted feedback from people on issues such as bills; council tax comparisons, tax, take home pay, disposable income, holiday pay, sick pay, insurance, etc.

Just a topic which can remove all the surprises that we may be hit with when we move to the US.

Also to include topics relating to kids, their education, etc.

I'll make a start:

Childcare at the moment: around £900 (2 year old)

Council tax: £1200/year

Electric/Gas: £75/month

Water: £40/month

Take home % income: (contracting) 80

Car insurance: £300/yr

Credit cards: easy to get (how can we use these in the UK to get a US credit card)

Hope others can feed in

Thanks

[Owen_London 65]

This is going to vary hugely depending on where you're going to live in the US (and where you live now in the UK).

Probably it would be better in the UK forum, too. Maybe a mod can move it?

[seanjoe 1]

yeah, i know its going to vary, but it would be informative. I am in Milton Keynes.

There you go, that's a start.

If anyone else can contribute with their city/state in the US, that would be a good start. I know we can't have 50 different sub-fora, let's do it on one.

People - please help/contribute.

[Owen_London 65]

Where are you moving to?

[seanjoe 1]

Hi Owen,

No idea yet. My DV interview is next week, so fingers crossed, it goes well, and then I have to apply for a job.

I saw on some parts of the forum that it is advisable to apply only after you get the visa?

Hence, why I am looking at any place where I can get a good job.

[Owen_London 65]

Hi Owen,

No idea yet. My DV interview is next week, so fingers crossed, it goes well, and then I have to apply for a job.

I saw on some parts of the forum that it is advisable to apply only after you get the visa?

Hence, why I am looking at any place where I can get a good job.

OK, that's a relatively rare situation on here, especially for UK residents.

But my answers will explain why your question is so difficult to answer:

Childcare: varies a lot, probably a factor of at least two. To the best of my knowledge, the most expensive areas are in the big cities on the east coast.

Council tax: State taxation varies a huge amount. Some take most taxes from state income tax, while others, including Texas, where I live, have no state income tax and instead have property tax. Our property tax for this year came to close to $10,000 for a 5-bed house.

Electric/gas: Big variation. Depends on the local climate (how much heating and/or ac needed), and how well insulated your house is.

Water: depends on local climate.

Take home % income: Depends on state income taxes. As a contractor you are liable for employee and employer taxes. But this is a complicated area, and you need to spend some time investigating if you want to pursue it.

Car insurance: I think this is significantly higher than UK, but again will vary a lot by area.

Credit cards: hard until your credit rating is built, then very easy. Look at some relevant threads here on building your credit rating once you arrive.

[seanjoe 1]

Hi Owen,

many thanks, can you atleast give me your figures for Texas (is it HOuston/Dallas?) for the utilities and child care? and car insurance. Of course, you don't need to specify income, but just the expense figures for YOU would be a good start.

I did not understand your first statement: ...that's a relatively rare situation on here, especially for UK residents.,,,,what is a rare situation?

[Nich-Nick 3,354]

Hi Owen,

many thanks, can you atleast give me your figures for Texas (is it HOuston/Dallas?) for the utilities and child care? and car insurance. Of course, you don't need to specify income, but just the expense figures for YOU would be a good start.

I did not understand your first statement: ...that's a relatively rare situation on here, especially for UK residents.,,,,what is a rare situation?

OK, I'll play, but not sure how my situation translates to you.

Houston suburb

Childcare: no clue

State income tax: $0

Property tax: $5200 last year. Can't find this years but higher. If you rent, you don't pay this. Figured into rent.

Municipal Utility District tax: $2300. Ditto above

Homeowners Association fee: $700

Sales tax (VAT): 8.25%

Electric: $120-$250/month. Highest June-Sept. Air conditioning.

Gas (heating, cooking, water heater): $20-$80/month. Winter higher for heating.

Water/sewer/garbage/recycle: $65-$140/month. High in summer when I use the sprinkler system daily. Cost of something new called a Groundwater Reduction Plan fee has tripled the cost in the last two years.

CableTV/Internet: $120/month. Low end basic package

Health Insurance: $850/month. Expensive when you're old. No government subsidy.

Take home % income: (contracting) No clue

Car insurance: $1500/yr. for two newish cars

Credit cards: Easy for me to get because I have a long credit history.

Gasoline: I've been seeing around $2.00/gallon recently. Yipee while it lasts.

[yuna628 9,676]

Well first of all, because of the conversion rate most anything in the US is going to be at least a tiny bit cheaper than it is in the UK. We also do not have VAT (taxes here will not be figured into the total price of the item). Many states have sales tax, but not every state. Some have it on food but not on clothing. But as a rule of thumb, it's expensive on the east coast to live with huge real estate discrepancies.

For gas/electric can vary depending on the state as well. In Maryland we can have extremely hot summers and cold winters. Hurricanes, tornados, blizzards (there was that one off earthquake at some point). Some places it is hard to get through the summer without some kind of central air/fans. Therefore our heating/air bill can run into $200-300. It is slightly cheaper now that we have new meters installed. I can remember during the multiple blizzards a while back our bill pushed $450. Most everyone here will complain about the cost of electric. Water will also depend on if you have public or septic. In rural areas, we are forced to use septic systems. That has added responsibility and upkeep to ensure you don't wind up with a nightmare. If you live in a city generally there is trash pickup for free. Not so, in the rural areas.

You do not need a tv license in the US. But if you want to watch something beyond a few channels, you'll have to buy cable/sat. Ours runs about $120 ish for most everything without all the very fancy premium stuff like HBO.

You are also expected to pretty much go through the pain of completing and sending in your own tax forms every year unless you use an accountant (never knew the UK had it so easy).

Transportation is obviously a big cost in the US. Unless you are in an urban setting driving is pretty much required. That's probably the best thing about the UK. Everything was close, easy to walk or take a bus to, and I felt safe to do so.

Your big additional cost of course will be healthcare. It will not be taken out in a tax or anything like that. The law requires you to either purchase healthcare through the marketplace, obtain it through your employer, or obtain it privately or pay the fine. Costs on this will vary tremendously depending on the type of plan and how many persons are on it. As it stands I pay about $300 a month, and a copay here or there when I need a doctor.

Car insurance again big variables. There are a few cost comparison sites like this.

One thing I noticed in the UK is how most people pay bills paperless via direct debit/direct deposit instead of the good ol' checkbook (a thing that is still used a good deal here). Paychecks certainly can vary depending on your sector of work; eg; Maryland is known for tech/cyber security, government jobs, healthcare work, software development, and agriculture. The higher skilled jobs certainly offer very high pay, which would only increase the cost of living in some counties here. Your employer may take out taxes, a cut towards healthcare, and even a small cut toward pension funds.

Gas is pushing around $2.50-$2.60 per gallon (yay!). Our tax on fuel is due to rise 2% again.

Sales tax is 6%, alcohol tax is 9%, cig tax $2 a pack. We were going to start taxing plastic bags but people freaked out. Our toll costs are ridiculous.

Everything is usually still open on a Sunday. We have strange laws about buying alcohol online (even to give in a gift basket). Sales tax is also collected online.

A lot of people find renting cheaper of course. Buying a home can be a huge cost in the city, even worse in suburban counties, but cheaper in rural areas. There's usually incentives for first time buyers. I can't comment on your employment or childcare. You'll have to start fresh and build up your credit.

In summary, if you want to live in Maryland - expect the following: good food, a lot to see and do, good healthcare systems, rather high taxes, plenty of options as to where you want to live, and good high paying jobs for those that are skilled. Expect crazy weather, crazy drivers, and the convenience of living near other states that don't have sales tax when you want an item but don't feel like paying through the nose for it.

Edited December 30, 2014 by yuna628

[Owen_London 65]

Hi Owen,

many thanks, can you atleast give me your figures for Texas (is it HOuston/Dallas?) for the utilities and child care? and car insurance. Of course, you don't need to specify income, but just the expense figures for YOU would be a good start.

I did not understand your first statement: ...that's a relatively rare situation on here, especially for UK residents.,,,,what is a rare situation?

I'm afraid I don't have the figures anywhere accessible, because my wife takes care of our bills, as she knows what to do having lived in the US all her life. I do our taxes, so it roughly balances out. This is why I vaguely know how much our property tax comes to, as it's tax deductible.

My answers would likely be similar to Nich-Nick's, except I receive health insurance through my employer.

Anyway, I'm in the Houston suburbs, as you can see if you look here

<----

It is relatively rare on this forum to not know where in the US you're moving. Most here are moving to be with their US fiance or spouse, and the next biggest group are on work visas, so also know where they're going. The biggest group who may not know where they're going are the couples where the US citizen spouse met a non-US citizen while living outside the US, and they're both about to move to the US.

Edited December 31, 2014 by Owen_London

[flying_postman 6]

Hi Owen,

No idea yet. My DV interview is next week, so fingers crossed, it goes well, and then I have to apply for a job.

I saw on some parts of the forum that it is advisable to apply only after you get the visa?

Hence, why I am looking at any place where I can get a good job.

I'm also a DV "winner" but my interview could be in April/May 2015; I would recommend you use the cost of living calculator http://www.numbeo.com/cost-of-living/comparison.jsp to compare cities. This helped me to narrow it down in my case Denver\Boulder,CO, Austin/Houston/Dallas TX and Durham/RTP/Chatlotte NC since my background is in IT and these cities have had positive Tech/IT job growth.

[seanjoe 1]

Thanks all for all the replies thus far. I know its rare for people, but for me a good job is going to be the main factor to decide where to settle. all other factors like snow, cold weather etc, are all secondary.

being a dv selectee is a rare phenomenon, and hence, why its good to know how people decide where to stay ahead of applying for a job.

I am working in the UK for a company whose main client was ExxonMobil; so if anyone knows any contacts in the oil/gas industry, it would be good if you could perhaps post or pm me. I was working as a safety leader/advisor.

With regards to property taxes, some very wide ranging figures; $10k per year, wow, that's high; but is this really TAX DEDUCTIBLE???? This is awesome if it is; we don't have that in the UK, so please anyone, is this an easy process to do?

With regards to electric; sounds quite high; I'm amazed the US is so expensive? Here my electric/gas total for the year is about £750; I tend to be thrifty with use.

And what is these other taxes: Utility district tax and housing association? Is that common?

Finally, as said earlier, I do not want to apply for any jobs till I get my visa; as most employers have the E-verify system, and one click on my name and they will just think this is another non-US person; hence, want to just hold out till then.

Great contributions so far, and please others, keep posting!!!!

[agnesb 47]

yeah, i know its going to vary, but it would be informative. I am in Milton Keynes.

There you go, that's a start.

If anyone else can contribute with their city/state in the US, that would be a good start. I know we can't have 50 different sub-fora, let's do it on one.

People - please help/contribute.

I lived in MK for almost a decade before moving to Florida :-)

Will try to get some figures for Orlando later, now off to work ;-) Good luck and happy new year!

[Owen_London 65]

Thanks all for all the replies thus far. I know its rare for people, but for me a good job is going to be the main factor to decide where to settle. all other factors like snow, cold weather etc, are all secondary.

being a dv selectee is a rare phenomenon, and hence, why its good to know how people decide where to stay ahead of applying for a job.

I am working in the UK for a company whose main client was ExxonMobil; so if anyone knows any contacts in the oil/gas industry, it would be good if you could perhaps post or pm me. I was working as a safety leader/advisor.

With regards to property taxes, some very wide ranging figures; $10k per year, wow, that's high; but is this really TAX DEDUCTIBLE???? This is awesome if it is; we don't have that in the UK, so please anyone, is this an easy process to do?

With regards to electric; sounds quite high; I'm amazed the US is so expensive? Here my electric/gas total for the year is about £750; I tend to be thrifty with use.

And what is these other taxes: Utility district tax and housing association? Is that common?

Finally, as said earlier, I do not want to apply for any jobs till I get my visa; as most employers have the E-verify system, and one click on my name and they will just think this is another non-US person; hence, want to just hold out till then.

Great contributions so far, and please others, keep posting!!!!

I imagine you already realise, but the oil industry is not hiring much right now, and most of the evidence points to the oil price staying low for the next couple of years. You may need to consider other industries. Also, bear in mind that many people report that they were only seriously considered for positions once they had landed in the US and were able to attend interviews in person.

The US has one of the most complicated tax systems in the world, particularly the year in which you are arrive, when you count as dual status for your tax return. Almost everyone has to do a tax return. Many use either a tax professional (may be the best option in your first year) or purchase software to help.

Just receiving your visa will not get you in the e-verify system. That only happens after you have arrived in the US, your automatic SSN (social security number) application has been processed, and the number has been added to e-verify. I'd guess 2 or 3 weeks after entry. You are right that you don't want to apply for jobs without the visa, though, as without it you can't give them a start date.

[Nich-Nick 3,354]

If you want oil and gas industry then Houston is your place. Exxon Mobil world headquarters are currently going up in North Houston and it is a HUGE project. Google it. Maybe there is something with them or the other gazillion oil/gas companies and related service industry. The economy and job market seem to do better in Houston, but right now like Owen said, it is taking a hit.

Here's the deal on property taxes. Everybody pays federal income tax. Most states also have a state income tax. Texas does not. They have property tax. The figure is broken down to fund different entities. It can go to the city, county, school district, bridge and road fund, local colleges, hospital districts, and emergency services, but paid as one bill. It is based on the value of your home. Owen appears to live in a big house and higher end neighborhood like me so our taxes are higher. Mine are three times what I paid before moving from a more rural county to the south, but the tax rates were lower and the house smaller. My husband, coming from a small bungalow near Oxford, commented that our new house was Windsor castle and our closets are bigger than his bedroom was. He's used to it now. So taxes are variable based on the size of the house and location.

If you live in the city limits, the city provides for basic services like water, sewer, garbage pickup, police, fire etc. ...meaning they build and maintain the infrastructure. I am not in an incorporated city. The developer of housing areas forms a Municipal Utility District (MUD) to do those same kinds of things. I pay MUD taxes instead of city taxes and they tend to be high in my opinion. My neighborhood also has a homeowners association (HOA) and deed restrictions. Our $700 dues maintains the neighborhood pools, playgrounds, tennis and basketball courts, mowing the common areas, planting flowers, and much more. So the Houston area variable is you can certainly find smaller houses, with no MUD taxes and no homeowners association, which are close by and plenty nice.

Electric bills: It's hot here. We air condition. Big house, more to cool, higher bills. The cooler you want it, the higher your bill.

Edited December 31, 2014 by Nich-Nick