Taxes and Cost of Life in Pittsburgh (West Mifflin, Mifflin: credit, property taxes)

[hebadin]

Hello everybody,

I'm currently living in Germany and have an job offer in Pittsburgh. I have a family (wife and 2 Kids, 5 and 1 years old). The gross money they offered me in Pittsburgh is less than the one I'm getting currently here. But since the tax systems are so different in both countries, it might be possible than the net salary is the same.

Let say I get 50.000 gross in Pittsburgh, how much do I have to pay in taxes? Of course, it might be different for every case, but at least in min max and average.

There are some additional costs that are not taxes, but must be considered? For example school fares or similar.

Thanks a lot for your help!

[ExPit]

Originally Posted by hebadin

Hello everybody,

I'm currently living in Germany and have an job offer in Pittsburgh. I have a family (wife and 2 Kids, 5 and 1 years old). The gross money they offered me in Pittsburgh is less than the one I'm getting currently here. But since the tax systems are so different in both countries, it might be possible than the net salary is the same.

Let say I get 50.000 gross in Pittsburgh, how much do I have to pay in taxes? Of course, it might be different for every case, but at least in min max and average.

There are some additional costs that are not taxes, but must be considered? For example school fares or similar.

Thanks a lot for your help!

If you're making 50k per year anywhere in the U.S. you'll pay about 15k of that in taxes, most all of it federal. The city taxes you're talking about are tallied according to the value of your house if you own it;

I'm an ex-Pittsburgher so current residents on this forum will be able to give you an exact percentage, but it's under ten.

[Sheradenmom]

You pay a percentage of your pay (1 to 3% approximately) to the municipality in which you live. I believe the city is the highest but in the city things like trash pickup is free. If your children attend public schools there is no additional fee. If you buy a home, you pay property tax, if not, you do not. I think that the Pittsburgh area is reasonably inexpensive and has a lot of amenities. Your children are along way off but the city has just put into place a program called the Pittsburgh Promise which is a scholarship for children attending Pittsburgh Public Schools to be used toward college. We have sales tax in Pennsylvania, in Allegheny county it is 7% but not all items are taxable. Food and clothing are not.

We have an awesome healthcare system in Pittsburgh. We also have alot of fun things for families to do. We have great museums, a first class amusement park and water park and a great zoo, to name a few. And we have a professional baseball, football and hockey teams. (some would argue the Pirates are not so professional based on their record) Feel free to ask any questions. I am a lifelong 'burgher and would love to help.

[BrianTH]

Unfortunately the tax situation is complicated, but I believe a married couple with two children and a $50,000/year household income should only be paying about $1000 in federal income taxes after all the relevant deductions and credits. You will also pay 7.65% of gross salary in payroll taxes, for another $3825, or about $5000 total in federal taxes.

The PA state income tax is another 3.07%, for about $1500, and then the city income tax will vary between 1-3%, for $500-1500.

So, in total federal, state, and local income and payroll taxes, your household should pay something like $7000-$8000 on a $50,000 salary. As others noted, there is also a state sales tax on some items, plus property taxes if you decide to buy a home.

[Humanoid]

but I believe a married couple with two children and a $50,000/year household income should only be paying about $1000 in federal income taxes after all the relevant deductions and credits.

Where do you get this? What tax deductions do you think they'll have? Their taxable income will be anywhere from 20~25k depending on any extra deductions they have (e.g., beyond standard deduction, etc). If their taxable income is around $20k then they will pay around $2,300 in taxes.

Anyhow, if you live in the city and don't own a home your total taxes will be around $9,200~9,800, so you'll get around $40k in your pocket.

a first class amusement park

Really where is it?

[pghcleak]

Originally Posted by Humanoid

Really where is it?

It's in West Mifflin

[BrianTH]

Originally Posted by Humanoid

Where do you get this? What tax deductions do you think they'll have?

Here is a tax calculator:

Tax Calculator - Tax Tools and Calculators - H&R Block

Plugging in all the relevant info and assuming married filing jointly, it came up with a tax bill of $1073. That was with a taxable income of $25,700 after the standard deduction and personal exemptions, for a tax of $3073, then minus $2000 for the two child tax credits.

[Humanoid]

then minus $2000 for the two child tax credits.

Amazing you can get that much credit for kids. Not sure how it works when the kids aren't citizens though.

[BrianTH]

Originally Posted by Humanoid

Not sure how it works when the kids aren't citizens though.

Yes, they have to be at least legal residents of the United States (although do not have to be citizens). But I assume the OP either is a citizen or would be getting a green card through sponsorship by the Pittsburgh employer, in which case the children would become residents.

[hildi200]

For tax purposes one is considered a resident even if on a non-resident visa to legally work in the US. So one would get the deductions even if you are not a citizen or a permanent resident.