California vs United Kingdom: Taxes & Take-Home Pay 2026
On a $100,000 salary you keep $72,969 in California and $71,937 in United Kingdom — $1,032 more per year in California ($86 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 salary | California | United Kingdom | Difference |
|---|---|---|---|
| $40,000 | $33,252 (16.9% tax) | $33,446 (16.4% tax) | -$195 |
| $60,000 | $48,037 (19.9% tax) | $47,846 (20.3% tax) | $191 |
| $75,000 | $57,952 (22.7% tax) | $57,437 (23.4% tax) | $516 |
| $100,000 | $72,969 (27.0% tax) | $71,937 (28.1% tax) | $1,032 |
| $150,000 | $102,280 (31.8% tax) | $97,339 (35.1% tax) | $4,941 |
| $250,000 | $161,071 (35.6% tax) | $147,230 (41.1% tax) | $13,842 |
- California total tax rate
- United Kingdom total tax rate
Where the money goes at $100,000
- California
- United Kingdom
About taxes in California
- California has the highest top income tax rate in the US: 13.3%. That is the 12.3% top bracket plus the 1% Mental Health Services Tax on taxable income over $1 million.
- FTB indexed the 2026 brackets for 3.4% inflation (California CPI, June 2025 to June 2026). For single filers the 9.3% bracket now starts at $75,197.
- The 2026 standard deduction is $5,900 for single filers and $11,800 for joint filers and heads of household, up from $5,706 and $11,412.
- Exemptions are tax credits, not deductions: $158 per person ($316 for joint filers) and $491 per dependent in 2026.
- The SDI withholding rate is 1.3% in 2026. Since 2024 SDI has no wage cap, so it applies to every dollar of wages.
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- The Personal Allowance falls by £1 for every £2 of adjusted net income above £100,000, so it is fully withdrawn at £125,140.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 California 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 California | Take-home | Same take-home in United Kingdom needs | Difference |
|---|---|---|---|
| $50,000 | $40,732 | $50,119 | +$119 (0.2%) |
| $75,000 | $57,952 | $75,889 | +$889 (1.2%) |
| $100,000 | $72,969 | $101,780 | +$1,780 (1.8%) |
| $150,000 | $102,280 | $165,184 | +$15,184 (10.1%) |
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.
| Salary | California | United Kingdom |
|---|---|---|
| $40,000 | 25.0% | 28.0% |
| $75,000 | 38.9% | 42.0% |
| $100,000 | 40.3% | 42.0% |
| $150,000 | 42.3% | 62.0% |
| $250,000 | 45.0% | 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.
California (US)
- Employer Social Security (OASDI): 6.20% — Matches the employee: 6.2% on wages up to $184,500 in 2026.
- Employer Medicare: 1.45% — Matches the employee: 1.45% on all wages with no cap (the 0.9% Additional Medicare Tax has no employer match).
- FUTA (federal unemployment): 0.60% — 6.0% on the first $7,000 of each employee’s wages, normally 0.6% after the 5.4% credit for state unemployment tax; states add their own unemployment tax.
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
| California (US) | United Kingdom | |
|---|---|---|
| Median earnings | 1,251 USD ($1,251) — median usual weekly earnings, full-time wage and salary workers (BLS), Q2 2026 | 39,039 GBP ($51,535) — median gross annual earnings, full-time employees (ONS ASHE), April 2025 |
| Minimum wage | 7.25 USD/hour ($7.25), from 24 July 2009 (federal; many states and cities set higher rates) | 12.71 GBP/hour ($16.78), from 1 April 2026 (National Living Wage, age 21+) |
US figures are national; many states and cities set a higher minimum wage.
United Kingdom vs California city by city
Take-home pay varies across California with local taxes, and living costs vary even more. On $75,000 you keep $57,437 in United Kingdom. California also deducts State Disability Insurance (SDI, incl. Paid Family Leave) (1.30%).
| City | Take-home on $75k | vs United Kingdom | Sales tax | Median rent / month | Price level (US = 100) | Take-home in national prices |
|---|---|---|---|---|---|---|
| Los Angeles | $57,952 | +$516 | 10.25% | $1,958 | 113.6 | $51,030 |
| San Francisco | $57,952 | +$516 | 8.63% | $2,448 | 115.6 | $50,126 |
| San Diego | $57,952 | +$516 | 7.75% | $2,414 | 111.9 | $51,795 |
| San Jose | $57,952 | +$516 | 10.00% | $2,674 | 110.4 | $52,482 |
- California has the highest top income tax rate in the US: 13.3%. That is the 12.3% top bracket plus the 1% Mental Health Services Tax on taxable income over $1 million.
- FTB indexed the 2026 brackets for 3.4% inflation (California CPI, June 2025 to June 2026). For single filers the 9.3% bracket now starts at $75,197.
- The 2026 standard deduction is $5,900 for single filers and $11,800 for joint filers and heads of household, up from $5,706 and $11,412.
- Exemptions are tax credits, not deductions: $158 per person ($316 for joint filers) and $491 per dependent in 2026.
How the two tax systems differ
| California (US) | United Kingdom | |
|---|---|---|
| Tax year | 1 January – 31 December 2026 | 6 April 2026 – 5 April 2027 |
| Filing a tax return | Most workers file an annual Form 1040 even though tax is withheld from pay; filing is required once gross income passes the threshold (e.g. $15,750 for a single filer under 65 for 2025). | 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 tax | Sales tax (no federal VAT) 0%. There is no national VAT or GST; states and localities levy their own retail sales taxes, and five states have no statewide sales tax. | VAT 20% (reduced: 5% (e.g. home energy, children’s car seats); 0% on most food and children’s clothes) |
| Retirement | Social Security is the mandatory public pension, funded by 6.2% from both employee and employer; workplace plans such as a 401(k) are voluntary, with employee deferrals limited to $24,500 in 2026. | 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. |
| Healthcare | There is no universal public insurance for working-age adults; most get coverage through an employer plan with premiums shared with the employer, while the 1.45% Medicare tax (matched by employers) funds hospital insurance for people 65 and over. | 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 gains | Long-term gains (assets held over a year) are taxed at 0%, 15% or 20% depending on taxable income, plus 3.8% net investment income tax for higher earners; short-term gains are taxed as ordinary income. | 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 California or United Kingdom better for taxes?
At $100,000, California leaves you $1,032 more per year after income and payroll taxes. The gap widens at higher incomes ($13,842 at $250,000).
How much is $60,000 after tax in California and United Kingdom?
$48,037 in California and $47,846 in United Kingdom.
Sources
Figures are taken from official government publications and were last reviewed on 2026-10-03.
- FTB – Tax News: 2026 Indexing (tax rate schedules, standard deduction, exemption credits)
- EDD – Contribution Rates, Withholding Schedules (2026 SDI rate)
- EDD – 2026 Withholding Schedules, Method B
- Tax Foundation – State and Local Sales Tax Rates, Midyear 2026
- GOV.UK – Income Tax rates and allowances for current and past years
- GOV.UK – Rates and thresholds for employers: National Insurance 2026 to 2027
- European Central Bank – euro foreign exchange reference rates
- IRS Topic No. 751, Social Security and Medicare withholding rates
- IRS Topic No. 759, Form 940 – Federal Unemployment (FUTA) Tax Return
- IRS: 401(k) limit increases to $24,500 for 2026, IRA limit increases to $7,500
- IRS Topic No. 559, Net Investment Income Tax
- IRS – Who should file
- U.S. Department of Labor – Minimum wage
- BLS – Usual Weekly Earnings of Wage and Salary Workers, Second Quarter 2026
- GOV.UK – VAT rates
- GOV.UK – Workplace pensions: what you, your employer and the government pay
- GOV.UK – Capital Gains Tax rates
- GOV.UK – Check if you need to send a Self Assessment tax return
- GOV.UK – National Minimum Wage and National Living Wage rates
- ONS – Employee earnings in the UK: 2025 (ASHE)
- Rev. Proc. 2025-32 (2026 inflation adjustments incl. OBBBA)
- IRS: Tax inflation adjustments for tax year 2026, including OBBBA amendments