Question:
Hi there, I'm looking at moving to NC under a H1B visa and just have a few questions about taxes, I'm British and I know our government robs us so I was wondering do you pay car tax? Council (local government) tax?,Tax if you're renting a property? TV licence? etc. and how much is it?
Also how much (roughly is income and sales tax (ours is 22% and 17.5% respectively)
Thanks for any help given.
Alicia
Answers:
You'll pay a LOT less in taxes here in the US.
No Council Tax! Property taxes are levied, however, and are often higher than Council Tax but the property owner is responsible for payment. If you are a tenant, it will be included in your rent.
Sales tax tops out at 10% and in most of the US is between 5% and 8.5%. Most of NC pays sales tax at 6.5%. Food is taxed at 2% in NC. Unlike VAT, sales taxes are tacked on at the cash register. They are not included in the shelf price of the goods.
Income tax is levied both at the Federal and State level. Federal rates vary from 0% to 35%. Most taxpayers pay a maximum of 15% or 25% but the net rate is much lower, typically between 12% and 18% due to exemptions and deductions. State income taxes average around 5% with a net rate of around 2% - 4%.
All wage earners pay Social Security and Medicare taxes of 7.65% on the first $97,500 (2007) and 1.45% after that. Due to agreements in place between the US and UK you will receive UK credit for the similar taxes in the UK.
There is no NHS in the US so make SURE that your job includes health insurance! Healthcare in the US is EXTREMELY expensive if you are uninsured and your NHS coverage is useless here.
No TV license! Period!
No road tax! Some states levy personal property taxes on vehicles though generally it's a lot less than the UK road tax. You do pay a use tax when you first register a vehicle. Normally that's at the state's sales tax rate but in NC it's 3%. Annual registration fees range from $25 to $60 and vary from state to state.
Here's a link that will get you started on issues related to taxes and living in NC and SC: http://www.carolinaliving.com/financial_... and here's a link to the IRS website: http://www.irs.gov for issues on Federal taxes.
dont know why usa charges you
Actually I believe Americans enjoy a lesser tax than most Europeans.
Sales Tax is typically 7% in most cities.
Property taxes are rising. renters do not pay that directly.
There is an average vehicle registration fee of $60-300 depending on how old you car is and the state.
Cigarettes and Gas are universally cheaper than the U.K.
Income taxes are on a rising scale, but most americans pay 17%-25% after deductables etc.
Local Government is funded by property taxes and sales tax. You will also pay a state income tax, which is significantly less than federal income tax.
Aside from that, Plane Tickets, Hotel Rooms, and even Computer Disposal Taxes get tacked on to many purchases.
They are also many fees for paperwork, although like england there is a pauper waiver, but I believe foreigners are inelligable in some cases.
Driver's Licences are $20.
You will pay taxes of about 6% on everything you buy (cars, clothes, some food, etc.) We do not pay any of the others you are asking about. Except for property tax if you buy a house--nothing if you rent one.
Not sure about income tax--I think federal takes about 10% and state is different in every state.
Sales tax varies from state to state. Where I live our sales tax is about 7%.
However, the American govnerment will tax you for everything they can (including ciggarettes), as well as we are expected to pay a Federal Income Tax. The federal income tax is unconstitutional and the money collected from it goes directly into the pockets of private bankers. So, we have taxation without representation.
Have fun in America!
you will find it to be less
Federal Income taxes
http://www.irs.gov/formspubs/article/0,,...
Social Security Taxes are governed by the totalization agreement between US and UK
you can write for a copy
Social Security Administration
Office of International Programs
P.O. Box 17741
Baltimore, Maryland 21235-7741
North Carolina charges 4.5% sales tax (4.0% on food)
plus local
6% - 8% Income Tax
irs.gov
http://www.taxadmin.org/fta/rate/sales.h...
http://www.taxadmin.org/fta/rate/ind_inc...
I hope this helps. Good luck.
North Carolina does not have a car tax, although some bordering states (Virginia and South Carolina) do. Local governments in North Carolina don't have an income tax, although they do in a few other states (Pennsylvania and Ohio). Although you will pay a state income tax (expect around 5%, although it's complicated). Sales tax in the US is different that in the UK, as the tax is added to the price on the shelf. In North Carolina, the sales tax varies by county but it averages around 7%. Most Americans federal (to the US government) income tax averages around 10%. There is no tax to rent property. And you don't need al license to have a television.
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