Tax & Wage Structure in Newark, Delaware (sales, 2009)

[Twinkle_Bang]

Hi All

As per my last thread, our move to Newark, Delaware is getting finalized. But I would like to know about the Tax Structure in Newark. For example in India we have certain brackets in which a salaried employee falls (Its separate for Men & Women). Hence, wanted to know if something similar applies there. I understand that there is no Sales Tax, however I was wondering what is the percentage of Tax does a Salaried Employee Pay there to the Government. Requesting your earliest help in this matter.

Also, if someone can guide what is the Minimum Wage a person should draw (Per Month) in Newark, Delware to lead a comfortable life (Eg, Owning a Car, a 1bhk furnished apartment for rent). I understand its completely based on Individual how to manage their savings & expenses, but would like to get a picture to understand if the salary offered to my husband is enough for us to survive there comfortably provided I am not working. Since, we will start our new life there from scratch, these kind of information would play a vital role in our decision.
Anyone reponding to the above queries at the earliest will be of great help for us. Awaiting response, Thankyou.

[katreese]

Delaware has no state tax; employees pay only federal tax, and it isn't different for men and women. I don't know what tax laws apply to non-U.S. citizens. Perhaps someone else on this site does. Here is the link to the IRS, the federal agency that deals with taxes:

Tax Information for Individuals

[Charley]

Originally Posted by katreese

Delaware has no state tax; employees pay only federal tax, and it isn't different for men and women. I don't know what tax laws apply to non-U.S. citizens. Perhaps someone else on this site does. Here is the link to the IRS, the federal agency that deals with taxes:

Tax Information for Individuals

I'm sorry, but Delaware absolutely has a state income tax. Here are the brackets based on your income:

-- No tax on the first $2,000
-- 2.2 percent on taxable income between $2,000 and $5,000
-- 3.9 percent on taxable income between $5,001 and $10,000
-- 4.8 percent on taxable income between $10,001 and $20,000
-- 5.2 percent on taxable income between $20,001 and $25,000
-- 5.55 percent on taxable income between $25,001 and $60,000
-- 5.95 percent on taxable income more than $60,000.

For those making over $60,000 - here is a shortcut. You'll pay $2,943.50 on the first $60,000 and the 5.95% on everything over $60,000.

There are also various personal exemptions, exceptions for social security and some pension (depending on age) and bottom line tax credits.

Complete information is available here: http://revenue.delaware.gov/

[katreese]

Originally Posted by Charley

I'm sorry, but Delaware absolutely has a state income tax.

Oh dear...something is wrong with that accountant I hired...thanks for the tip!

[Germantown_girl]

De has a state income tax, You got to pay the tax even if you live outside of DE and work there.Living in MD and working in DE = paying state tax to both MD and DE which is insane

[Charley]

Originally Posted by katreese

Oh dear...something is wrong with that accountant I hired...thanks for the tip!

Wow. Looks like you're in the market for a new accountant. I would be if one advised me that way.

I hope this doesn't cause you any problem. Good luck.

[elizamary]

Just want to share.........when you turn 65 you get 50% off your school taxes.
Thanks for the chart Charley. That explains why I owed last year. Thank God I'm poor this year.

[Twinkle_Bang]

Thankyou everyone for your response on the Tax part, its really helpful. Thankyou again people.Now, coming to the next question...kindly let me know if a person draws around 55000$ per annum in Newark,DE. After the deduction of tax..will the take home be enough for 2 people to survive comfortably?We are looking for a 1BHK furnished apartment for rent & also take a car on EMI. After paying all these & meeting our daily needs, will we be able to save anything?How advisable it is to shift to Newark with the salary offered?Your suggestions in this matter will be greatly appreaciated. Awaiting response.

[Twinkle_Bang]

Hi People

I have got hold of a link ([SIZE=2]http://www.freeusaguide.com/salary_slip.htm) which provides the different taxes levied on an individuals salary. Not sure if the same percentages are applicable for 2009 & also if all these categories are applicable to a person working in any of the state in US. Hence, if anyone can varify & let me know how accurate is this...it will be very helpful:[/SIZE]
Gross Salary- (Health Insurance (Anywhere between 0-800) +Federal TAx (15% of Gross Salary)+ Federal Institution Contribution Act (FICA)(6.2% of Gross Salary)+Medicare(1.45% of Gross Salary)+ State Tax (5% of the Gross Salary)+ Other Tax (1% of the Gross Salary)= Take Home
[SIZE=2]
[/SIZE]

[Charley]

Originally Posted by Twinkle_Bang

Thankyou everyone for your response on the Tax part, its really helpful. Thankyou again people.Now, coming to the next question...kindly let me know if a person draws around 55000$ per annum in Newark,DE. After the deduction of tax..will the take home be enough for 2 people to survive comfortably?We are looking for a 1BHK furnished apartment for rent & also take a car on EMI. After paying all these & meeting our daily needs, will we be able to save anything?How advisable it is to shift to Newark with the salary offered?Your suggestions in this matter will be greatly appreaciated. Awaiting response.

This is a link to a "Take Home Pay" calculator:

https://www.paycycle.com/external/bu...92!-1407111363

When you reach this page, click on Salary Paycheck Calculator, choose your state and fill in all the appropriate details. You will then get a very good estimate of what your paycheck will be. We've used it for years and it's never been off by more than a few cents.