Moving to Lake County, IL

LuboMagic

Hi All,
I've been asked to interview for a job in our US office in Lake County, IL.
I don't know the salary, and won't know until I get the offer. I do know full relocation expenses will be covered and that I won't be financially penalised because of the move (ie negative equity, new car being sold at a loss etc).
My wife works part-time, and together we earn net €84.5k with our wages and childrens allowance.
I have three kids and a fourth on the way.
In order for me to take the job, I need to have a US salary that will lead to the same net income, as my wife will not work if we move, plus cover the $900 property tax per month (Lake County has highest prop tax in IL).

What is this approx. magic number? Are there any other significant differences to the Irish tax system that I need to be aware of other than property tax?

Thanks all!

spideog7

Too many variables to give you an exact figure but at a guesstimate:

E85000 = $116,390 + 10,800 property tax = $127,190
127,190 * 1.08 (State Tax + Local Tax) = 137,365

Again this is an estimate I believe the state tax (5% I think) there is calculated off your net but there's likely also local tax, I've estimated that at 3% but I really have no idea.

So if you work backwards from that net value into an online calculator like this one: http://www.bankrate.com/calculators/tax-planning/1040-form-tax-calculator.aspx or http://www.calculator.net/take-home-pay-calculator.html (These both vary in complexity depending on how precise you want to be, but the first one is only federal tax, the second one is likely more beneficial for you).

You get about ~$150K plus ~6% social security and medicare $160K. Which if you earn E85K Net in Ireland is likely well within you're reach if not low, depends on your line of work I guess.

Now bear in mind the cost of schools for your kids is likely to be higher than what you're used to and healthcare will be astronomical if your company aren't covering your whole family. If you're staying long term the cost of college is likely to be even higher again, in addition you're almost guaranteed to need a private pension as you can't rely on the state pension. Of course the cost of living might be a little lower (Food, Petrol, Car operating costs etc.). All of this stuff varies hugely from one region to another in the US though so it's hard to estimate, it would be even hard for me to estimate how much I'd need to earn to work out the same if I were to move to another city or state.

InTheTrees

LuboMagic wrote: »

plus cover the $900 property tax per month (Lake County has highest prop tax in IL).

Wow. Really? Are you sure?

Property Tax in the US is usually based on property value.

InTheTrees

spideog7 wrote: »

Again this is an estimate I believe the state tax (5% I think) there is calculated off your net but there's likely also local tax, I've estimated that at 3% but I really have no idea.

Well there's federal Income Tax and State income tax. But individual counties dont get to impose income tax.

Counties can have a Sales Tax though.

biko

This is not super accurate but will give you an idea of cost of living here and there
http://www.numbeo.com/cost-of-living/comparison.jsp

LuboMagic

Spideog7 , thanks for the detail. All in all, between Federal,State and Local taxes I'm looking at c.25% roughly.
The €84.5k is myself and my wife's (part-time)earnings, I don't think $160k will be on offer, I think $140k will probably be the ballpark salary.
So, for arguments sake, if salary is $142k, Fed,state local tax at 25% is $35,500 plus $10,800 property tax, I have $95.7k which equates to €69,889. In real terms a drop of €15k per year. It's a huge decision, balancing giving up the security of two permanent jobs for one and losing 15k into the bargain versus career advancement for me, my wife being able to stay at home, and moving the whole family to experience a different way of life ( which we are all for).
This will really help when we discuss salary, I don't think I'd be able to take the risk for 140k, so it would need be $155k plus.
Thanks again.

Inthetrees,
Check link below, house worth 435k which would be in budget for me, prop tax of $9800 in 2012. From what I've read, they've increased significantly year on year.
http://www.trulia.com/property/3144156679-346-Southgate-Dr-Vernon-Hills-IL-60061

InTheTrees

LuboMagic wrote: »

Inthetrees,
Check link below, house worth 435k which would be in budget for me, prop tax of $9800 in 2012. From what I've read, they've increased significantly year on year.
http://www.trulia.com/property/3144156679-346-Southgate-Dr-Vernon-Hills-IL-60061

Yup. You never mentioned a house or the $435k budget thats all

spideog7

InTheTrees wrote: »

Well there's federal Income Tax and State income tax. But individual counties dont get to impose income tax.

Counties can have a Sales Tax though.

Not the county, the municipality. I dunno about Illinois but in Pennsylvania each municipality imposes an income tax. The city of Pittsburgh is 1% plus 2% for the school district. So 3% on top of 3.04% state. Here it is governed by where you live, in other areas (around Philly for example) it is determined by where you work.

InTheTrees

spideog7 wrote: »

I dunno about Illinois but in Pennsylvania each municipality imposes an income tax.

Wow. City Income Tax? Out here in Washington State we dont even have State Income Tax.

sawdoubters

health care will be a big cost ,schools another cost,think 100,000 minimum to go to university, income taxes are lower,
standard of living will be higher,you might have to pay your own pension,


http://www.zillow.com/homes/for_sale/Lake-County-IL/pmf,pf_pt/220_rid/5-_beds/days_sort/42.587972,-87.465591,42.061019,-88.488693_rect/9_zm/

spideog7

InTheTrees wrote: »

Wow. City Income Tax? Out here in Washington State we dont even have State Income Tax.

There must be some catch, (sales tax, property tax?) where the heck do they get their money? PA is banking huge amounts from all the fracking and they're still broke!