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Australia vs United Kingdom: Taxes & Take-Home Pay 2026

On a $100,000 salary you keep $74,136 in Australia and $71,937 in United Kingdom — $2,199 more per year in Australia ($183 a month). Single filer, standard deductions.

Updated 2026-10-03 · International figures converted at the exchange rate noted in sources; salaries entered in US dollars. Excludes retirement, health and cost-of-living differences.

Take-home pay at every salary

Gross salaryAustraliaUnited KingdomDifference
$40,000$33,778 (15.6% tax)$33,446 (16.4% tax)$332
$60,000$47,378 (21.0% tax)$47,846 (20.3% tax)-$468
$75,000$57,578 (23.2% tax)$57,437 (23.4% tax)$141
$100,000$74,136 (25.9% tax)$71,937 (28.1% tax)$2,199
$150,000$103,183 (31.2% tax)$97,339 (35.1% tax)$5,844
$250,000$156,183 (37.5% tax)$147,230 (41.1% tax)$8,953
0%26%53%79%105%$20,000$160,000$300,000

Where the money goes at $100,000

Income tax
$23,864
$23,409
Medicare levy
$2,000
$0
Class 1 National Insurance (main rate)
$0
$3,981
Class 1 National Insurance (above UEL)
$0
$673

About taxes in Australia

  • For 2026-27 (1 July 2026 to 30 June 2027) Australian residents pay nil on the first $18,200, 15% from $18,201 to $45,000, 30% to $135,000, 37% to $190,000 and 45% above.
  • The rate on income between $18,201 and $45,000 fell from 16% to 15% on 1 July 2026 and is scheduled to fall to 14% from 1 July 2027.
  • A resident earning $190,000 pays $51,370 in income tax before the Medicare levy and offsets.
  • The Medicare levy is 2% of taxable income; low-income earners get a reduction (for 2025-26, singles below $35,013), which is not modelled here.
  • The Medicare levy surcharge (1% to 1.5% for higher earners without private hospital cover), tax offsets and HELP repayments are not modelled.

About taxes in United Kingdom

  • For 2026/27 the Personal Allowance is £12,570, the basic rate of 20% applies to the first £37,700 of taxable income, 40% up to £125,140 and 45% above (England).
  • The Personal Allowance falls by £1 for every £2 of adjusted net income above £100,000, so it is fully withdrawn at £125,140.
  • Employee Class 1 National Insurance for 2026/27 is 8% on earnings between the Primary Threshold (£242 a week, £12,570 a year) and the Upper Earnings Limit (£967 a week, £50,270 a year), and 2% above.
  • The calculator applies National Insurance on annual earnings; in practice it is assessed per pay period, so irregular pay can produce slightly different results.
  • Student loan repayments, pension contributions, the Marriage Allowance and Scottish rates are not modelled.

Salary needed to keep the same take-home

If you move between Australia and United Kingdom, this is the gross salary (in US dollars) that leaves the same take-home pay after income tax and employee contributions.

Salary in AustraliaTake-homeSame take-home in United Kingdom needsDifference
$50,000$40,578$49,905−$95 (-0.2%)
$75,000$57,578$75,244+$244 (0.3%)
$100,000$74,136$103,791+$3,791 (3.8%)
$150,000$103,183$166,893+$16,893 (11.3%)

Tax on your next $1,000

The marginal rate — the share of a raise that goes to tax and contributions — often matters more than the average rate.

SalaryAustraliaUnited Kingdom
$40,00032.0%28.0%
$75,00032.0%42.0%
$100,00039.0%42.0%
$150,00047.0%62.0%
$250,00047.0%47.0%

What employers pay on top

Employer payroll and social contributions are not deducted from your pay, but they affect what employers can afford to offer.

Australia

  • Superannuation guarantee: 12.00% — 12% of qualifying earnings in 2026-27, paid on each payday under Payday Super from 1 July 2026, up to a maximum contribution base of $270,830 a year.

United Kingdom

  • Employer Class 1 National Insurance: 15.00% — 15% on earnings above the Secondary Threshold of £96 a week (about £5,000 a year) for 2026/27, with no upper limit.
  • Workplace pension (auto-enrolment minimum): 3.00% — At least 3% of qualifying earnings (£6,240 to £50,270) for auto-enrolled staff.

Typical pay and minimum wage

AustraliaUnited Kingdom
Median earnings1,425 AUD ($989) — median weekly earnings in main job, all employees (ABS Employee Earnings), August 202539,039 GBP ($51,535) — median gross annual earnings, full-time employees (ONS ASHE), April 2025
Minimum wage26.44 AUD/hour ($18.35), from 1 July 2026 (National Minimum Wage)12.71 GBP/hour ($16.78), from 1 April 2026 (National Living Wage, age 21+)

How the two tax systems differ

AustraliaUnited Kingdom
Tax year1 July 2026 – 30 June 20276 April 2026 – 5 April 2027
Filing a tax returnEmployees have PAYG tax withheld from each pay but most still lodge an annual tax return after 30 June.Most employees pay through PAYE and never file a return; Self Assessment is needed mainly for self-employment over £1,000, untaxed income such as rent or investments, or Capital Gains Tax owed.
Consumption taxGST 10%. A broad-based 10% tax; some items, such as basic food, are GST-free.VAT 20% (reduced: 5% (e.g. home energy, children’s car seats); 0% on most food and children’s clothes)
RetirementEmployers must pay the 12% superannuation guarantee into the employee’s super fund on top of wages; employees are not required to contribute but can add salary-sacrifice or personal contributions.Employers must auto-enrol eligible workers into a workplace pension; the legal minimum is 8% of qualifying earnings, of which the employee pays 5% (including tax relief) and the employer at least 3%. Workers can opt out.
HealthcareMedicare is funded from general revenue and the 2% Medicare levy on taxable income; higher earners without private hospital cover may also pay the Medicare levy surcharge of 1% to 1.5%.The NHS is funded mainly from general taxation and National Insurance and is free at the point of use for residents; there is no separate health premium or levy on pay.
Capital gainsNet capital gains are added to taxable income; residents who hold an asset for at least 12 months reduce the gain by the 50% CGT discount.Gains above the £3,000 annual exempt amount are taxed at 18% within the basic-rate band and 24% above it.

Frequently asked questions

Is Australia or United Kingdom better for taxes?

At $100,000, Australia leaves you $2,199 more per year after income and payroll taxes. The gap widens at higher incomes ($8,953 at $250,000).

How much is $60,000 after tax in Australia and United Kingdom?

$47,378 in Australia and $47,846 in United Kingdom.

Sources

Figures are taken from official government publications and were last reviewed on 2026-10-03.

  1. ATO – Tax rates: Australian residents
  2. Budget 2026-27 – Cost of living
  3. ATO – What is the Medicare levy?
  4. ATO – Medicare levy reduction for low-income earners
  5. European Central Bank – euro foreign exchange reference rates
  6. GOV.UK – Income Tax rates and allowances for current and past years
  7. GOV.UK – Rates and thresholds for employers: National Insurance 2026 to 2027
  8. ATO – How GST works
  9. ATO – Super guarantee rates and maximum contribution base
  10. ATO – CGT discount
  11. ATO – How to work out if you need to lodge a tax return
  12. Fair Work Ombudsman – Minimum wages
  13. ABS – Employee Earnings, August 2025
  14. GOV.UK – VAT rates
  15. GOV.UK – Workplace pensions: what you, your employer and the government pay
  16. GOV.UK – Capital Gains Tax rates
  17. GOV.UK – Check if you need to send a Self Assessment tax return
  18. GOV.UK – National Minimum Wage and National Living Wage rates
  19. ONS – Employee earnings in the UK: 2025 (ASHE)
  20. Rev. Proc. 2025-32 (2026 inflation adjustments incl. OBBBA)
  21. IRS: Tax inflation adjustments for tax year 2026, including OBBBA amendments
  22. IRS: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500