Why the US Remains an Attractive Destination for UK Immigrants
Approximately 20,000 British citizens relocate to the US annually, enticed by higher salaries and lower tax rates.
Visa Process Considerations
Permanent residency in the US can be challenging to obtain. Potential immigrants require a strong US connection through employment, investments, or family ties. Visa approval times can vary significantly.
The Trump administration's focus on immigration restrictions may impact British workers seeking to move to the US. Uncertainty remains regarding potential changes to work visas.
Income and Healthcare Costs
Skilled workers in the tech sector can expect to earn significantly more in the US compared to the UK. However, healthcare costs are higher, with most individuals obtaining insurance through their employer. Factor in healthcare expenses when considering a move to the US.
Tax Implications
US workers generally pay lower taxes compared to the UK. However, President Trump has threatened to double taxes for foreign nationals and companies.
The US has seven federal tax brackets, with a top rate of 37% for incomes over $609,351 in 2024. State income taxes vary, with California having the highest burden.
State Tax Reduction Strategies
Taxpayers can deduct $5,000 of state taxes on federal returns. Relocating to states without income tax, such as Florida, Nevada, or Texas, can provide significant savings.
California's complex tax rules can still impose income tax on non-residents who spend significant time in the state. To avoid this, expats should sever ties with California and establish residency elsewhere.
Inheritance Tax Considerations
The UK plans to abolish its non-dom status, potentially subjecting expats to inheritance tax on UK assets.
The US has no inheritance tax, but US citizens are subject to federal estate tax on assets exceeding $13.6m in 2024.