meggw

Hey everyone,

I apologise if I have written this in the wrong section of the forum, I am new to this site.

I have been offered a job in Dallas and am currently deliberating whether to accept. I have done lots of research on various aspects but one area I am not clear on is taxes.

I have read that in Dallas you pay no income tax, which almost seems too good to be true! I have used an online tax calculator and it tells me that all I would pay would be Federal tax and "FICA". Is this correct?

I don't want to have any nasty surprises when I get there and find I have no money every month after rent because I did not incorporate taxes etc.

Appreciate any help!

Megan

robin1234

You'll pay income tax similar to in the UK. Federal income tax is broadly the equivalent of the income tax paid to HMRC in Britain. FICA is equivalent to your NI Contributions in Britain. Most U.S. States also have state income tax, but Texas has no state income tax - that's the difference.

Owen778

Federal income tax has to be paid in Texas, just like the rest of the US. There are no income taxes for the state, instead they make their money from property tax and sales tax. There is no free lunch.

I'm hoping your potential employer has indicated how they plan to get you a work visa for the US?

Rete

You do have to figure in what deductions will come from your paycheck for healthcare contributions to your employer plan, if one is offered and if you are required to pay part of the premium. This could be anywhere from $0 to a few hundred dollars per month. Your employer should be able to tell you what is what. There is also a small deduction for disability insurance.

Pulaski

Owen summarized it quite nicely - while no state income tax sounds good, in practice they get their pound of flesh in other ways, which in Texas is primarily property tax.

I, who don't live in Texas, was comparing notes with some I know in Texas who has a roughly comparable house to mine, and while he and his wife "pay no state income tax" in practice his property tax is about the same as the sum of my property tax plus my wife's and my state income tax. .... And if you're renting a home the property tax is effectively lumped in to the amount of the rent.

Cook_County

Your obligation to pay FICA will depend on your visa type & contract type.