Moving to the US for Work: Salary, Taxes, and Cost of Living
A practical guide for international workers relocating to the US — understanding gross vs net salary, US tax system, cost of living by state, benefits, and how to evaluate a US job offer.
A US job offer can look dramatically different on paper versus in your bank account. Understanding how American salaries actually work — taxes, cost of living, benefits — is essential before making the move.
Gross Salary vs Take-Home Pay in the US
US employers state salaries as gross (pre-tax) annual figures. From that number, federal income tax, state income tax (varies 0–13%), Social Security (6.2%), and Medicare (1.45%) are withheld from each paycheck. For a $70,000 salary in Texas (no state tax), your net annual take-home is approximately $53,000 — about 76%. In California, the same salary nets approximately $49,000 — about 70%. Use our US visa salary comparison tool and salary after tax calculator to model any offer in any state.
The US Tax System: What International Workers Need to Know
The US uses a progressive federal income tax with rates from 10% to 37%. Most workers fall in the 22–24% marginal bracket. Critically, your effective rate is always lower — a $70,000 earner pays roughly 16% effective federal tax because the first dollars are taxed at 10%, then 12%, then 22%. The standard deduction ($14,600 single, $29,200 married) further reduces your taxable income.
State Income Tax: Choose Wisely
Nine states have no income tax: Texas, Florida, Nevada, Washington, Alaska, Wyoming, South Dakota, Tennessee, and New Hampshire. If you have flexibility in your relocation, choosing a no-tax state over California or New York can mean $5,000–$12,000 more in annual take-home pay at typical international-worker salary levels.
Cost of Living: The Hidden Multiplier
A $90,000 salary in San Francisco has less purchasing power than $65,000 in Austin, Texas. Our US visa salary comparison applies a cost-of-living index to normalize salaries. California (index: 151) costs 51% more than the national average; Texas (93) is 7% below. Major cost drivers: housing (often 3–4× more in coastal cities), healthcare, and transportation.
US Employee Benefits: A Major Part of Compensation
- Health insurance: Employers typically cover 70–80% of premiums ($7,000–$15,000/year value)
- 401(k) matching: Often 3–6% of salary — free money you should always capture
- Paid time off: Typically 10–20 days, plus federal holidays
- Flexible spending accounts (HSA/FSA): Pre-tax accounts for medical expenses
Evaluating a US Job Offer
Use our US visa salary comparison to convert your current salary to USD and compare it against the US offer after taxes and cost of living. Then factor in the benefit package value. A $70,000 US offer with strong benefits may be significantly more valuable than a $85,000 offer with minimal benefits at a higher cost-of-living location.