Relocating from Toronto, Ontario to Schaumburg, Illinois (Chicago, Arlington Heights: best neighborhoods, rental)

[chet everett]

I think if you factor in the property tax and everything else the tax burden in the US is very similar to Canada -- here we have far more 'layers' or tax that are easier to forget about. The Canadians are a bit more honest / open in comparison to our sneakier taxes / bureaucrats (much Illinois tax money funnels it way to the politicians and their corruption, often through campaign funds that are fed by the people benefiting from government contracts -- you may have seen Rod Blagovejiveh)...

[oakparkdude]

Originally Posted by lincolnparker

A 90k income will probably net you around $2k every two weeks, after federal tax, state tax, medicare, social security, 401k, health insurance, dental etc. And state income tax is going up to 4.5% from 3% next year.

And with your income, if you dont have a lot to deduct (student loans, mortgage payments, dependents, medical expenses, legal fees, moving costs, etc etc) to reach a much lower AGI, you're looking at 30% fed tax rate. So assuming you get biweekly pay, 90k (divided by 26) translates into $3460 before any expenses. Dependig on the coverage you need, you are looking at $200 to $300 per pay check for medical/dental for family of 4. let's take the midpoint, now you have $3210 left. Then add 30%fed+4.5%state+6%(401k)+7.65%(medicare and social security combo)=48.15% so your net take home pay is only $1664 =3210*(1-48.15%).

Assuming you dont want to participate in 401k, you are taking home just over $1800.

No disrespect intended, but the information above is incorrect and misleading.

First of all, if you're in the 30% tax bracket, that means your MARGINAL tax rate is 30%, and your effective tax rate is much, much lower. Since you have a family of 4, you will have many deductions and exemptions which will drop your taxable income significantly, probably giving you a total taxable income of somewhere in the 60-70k range (very rough guestimate) which makes your marginal rate 25%. Given the progress nature of the Federal income tax code, your EFFECTIVE tax rate (the rate you really care about) will probably be around 15%-ish (again very rough guestimate.)

Furthermore, there is no state income tax increase yet, and the proposed increase from 3 to 4.5 percent is only on income above a certain threshold (I forget exactly but I think 30k). Obviously until a bill is actually passed into law its hard to say what effect it will have on a person with 90k income and 3 dependents.

[walallypo]

Thank you all again for the time taken to provide your input. I have always been under the impression that one as a taxpayer in the USA would have more disposable income copared to Canadian couterparts, which pay higher taxes, and in return get more governments services and benefits.

If living on a 90K salary with 3 dependents in a good school district area would put me under budgetary constraints then relocation is not really an option, at leat not on 90k salary.

Not sure is there is anyone currently in this forum living on a similar salary and supporting the same family size.

-Walla

[chet everett]

I think that you would NOT move up the financial ladder much if at all when comparing COL in Toronto to Chicago -- the ways in which we are taxed are somewhat different, and the things we have to pay for are different but at the end of the day things sorta wash out.

That said there are differences in career path and even opportunity for the kids / spouse that I have heard are different in the two countries. It is not a cut and dried equation. I have relatives that live near Buffalo and some near Detroit that do have more experience with things Canadian -- the differences that switch back and forth over time (sometimes with the exchange rate) AND THE COST OF MOVING means that there is not a whole lot of mobility, BUT in some cases there are reasons to move. I have even heard that some folks do it for access to different college rates and such.

Personally there are many things that would go into this sort of decision and finances would be mid to low on the list.

[rockinrolla]

Originally Posted by walallypo

Thank you all again for the time taken to provide your input. I have always been under the impression that one as a taxpayer in the USA would have more disposable income copared to Canadian couterparts, which pay higher taxes, and in return get more governments services and benefits.

If living on a 90K salary with 3 dependents in a good school district area would put me under budgetary constraints then relocation is not really an option, at leat not on 90k salary.

Not sure is there is anyone currently in this forum living on a similar salary and supporting the same family size.

-Walla

Walla, variance in circumstances accounted for and all that, we are a family of four and live in that area, on a similar budget. We're frugal spenders, but...we have a nice house on a 1/2 acre lot, 2 cars, get out to the movies, dine out occasionally, catch a few concerts at the ravinia, that sort of thing. $90K-ish is entirely adequate for us. You'll be fine.

[walallypo]

Thank you!! We plan to rent for at least a year and then buy something big anough to accomodate the four of us.

-Walla

[rockinrolla]

Good time to buy now, being a buyers market and all (provided your credit is good). You've got some choices in them parts.

[cubssoxfan]

wallalypo: Don't forget to include cost of health care insurance through your employer. Some other suburbs near Schaumburg to consider include: Palatine, Arlington Heights and Prospect Heights.

[rockinrolla]

Originally Posted by cubssoxfan

Some other suburbs near Schaumburg to consider include: Palatine, Arlington Heights and Prospect Heights.

Yep, them, although Prospect Heights is a little farther out. Hoffman Estates, Elk Grove Village, Roselle, and Rolling Meadows is a bit nearer. We're in unincorporated Palatine, which is essentially surrounded by Rolling Meadows, and is like a 5 minute ride to Woodfield Mall.

[Milwaukee City]

I thought their wasn't property taxes in Schaumburg b/c of the money generated by Woodfield?