United Kingdom vs United States: Taxes & Take-Home Pay 2026
On a $100,000 salary you keep $71,937 in United Kingdom and $79,180 in United States — $7,243 more per year in United States ($604 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 | United Kingdom | United States | Difference |
|---|---|---|---|
| $40,000 | $33,446 (16.4% tax) | $34,320 (14.2% tax) | -$874 |
| $60,000 | $47,846 (20.3% tax) | $50,390 (16.0% tax) | -$2,544 |
| $75,000 | $57,437 (23.4% tax) | $61,593 (17.9% tax) | -$4,156 |
| $100,000 | $71,937 (28.1% tax) | $79,180 (20.8% tax) | -$7,243 |
| $150,000 | $97,339 (35.1% tax) | $113,791 (24.1% tax) | -$16,452 |
| $250,000 | $147,230 (41.1% tax) | $183,182 (26.7% tax) | -$35,952 |
- United Kingdom total tax rate
- United States total tax rate
Where the money goes at $100,000
- United Kingdom
- United States
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- The Personal Allowance falls by £1 for every £2 of adjusted net income above £100,000, so it is fully withdrawn at £125,140.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.
About taxes in United States
Salary needed to keep the same take-home
If you move between United Kingdom and United States, this is the gross salary (in US dollars) that leaves the same take-home pay after income tax and employee contributions.
| Salary in United Kingdom | Take-home | Same take-home in United States needs | Difference |
|---|---|---|---|
| $50,000 | $40,646 | $47,873 | −$2,127 (-4.3%) |
| $75,000 | $57,437 | $69,093 | −$5,907 (-7.9%) |
| $100,000 | $71,937 | $89,704 | −$10,296 (-10.3%) |
| $150,000 | $97,339 | $125,930 | −$24,070 (-16.0%) |
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 | United Kingdom | United States |
|---|---|---|
| $40,000 | 28.0% | 19.7% |
| $75,000 | 42.0% | 29.6% |
| $100,000 | 42.0% | 29.6% |
| $150,000 | 62.0% | 31.6% |
| $250,000 | 47.0% | 34.4% |
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.
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.
United States
- 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.
Typical pay and minimum wage
| United Kingdom | United States | |
|---|---|---|
| Median earnings | 39,039 GBP ($51,535) — median gross annual earnings, full-time employees (ONS ASHE), April 2025 | 1,251 USD ($1,251) — median usual weekly earnings, full-time wage and salary workers (BLS), Q2 2026 |
| Minimum wage | 12.71 GBP/hour ($16.78), from 1 April 2026 (National Living Wage, age 21+) | 7.25 USD/hour ($7.25), from 24 July 2009 (federal; many states and cities set higher rates) |
United Kingdom vs every US state
The figures above use federal tax only, which is what you pay in a state with no income tax. Add state and local income tax and the answer changes: on $75,000, 47 of 51 states leave more take-home pay than United Kingdom ($57,437), and 4 leave less.
| State | Take-home on $75k | vs United Kingdom | Take-home on $150k | vs United Kingdom |
|---|---|---|---|---|
| Florida | $61,593 | +$4,156 | $113,791 | +$16,452 |
| Nevada | $61,593 | +$4,156 | $113,791 | +$16,452 |
| New Hampshire | $61,593 | +$4,156 | $113,791 | +$16,452 |
| South Dakota | $61,593 | +$4,156 | $113,791 | +$16,452 |
| Tennessee | $61,593 | +$4,156 | $113,791 | +$16,452 |
| Texas | $61,593 | +$4,156 | $113,791 | +$16,452 |
| Wyoming | $61,593 | +$4,156 | $113,791 | +$16,452 |
| North Dakota | $61,411 | +$3,974 | $112,147 | +$14,808 |
| Alaska | $61,322 | +$3,885 | $113,520 | +$16,181 |
| Washington | $60,552 | +$3,115 | $111,711 | +$14,372 |
| Arizona | $60,111 | +$2,674 | $110,435 | +$13,096 |
| Louisiana | $59,729 | +$2,292 | $109,677 | +$12,338 |
| South Carolina | $59,433 | +$1,996 | $107,724 | +$10,385 |
| Mississippi | $59,325 | +$1,888 | $108,523 | +$11,184 |
| Iowa | $59,252 | +$1,815 | $108,458 | +$11,119 |
| New Mexico | $59,233 | +$1,796 | $107,772 | +$10,433 |
| Utah | $59,221 | +$1,784 | $108,082 | +$10,743 |
| Arkansas | $59,213 | +$1,776 | $108,486 | +$11,147 |
| Vermont | $59,153 | +$1,716 | $106,261 | +$8,922 |
| North Carolina | $59,109 | +$1,672 | $108,315 | +$10,976 |
| Nebraska | $59,060 | +$1,623 | $107,846 | +$10,507 |
| West Virginia | $59,047 | +$1,610 | $107,810 | +$10,471 |
| Missouri | $59,005 | +$1,568 | $107,678 | +$10,340 |
| Wisconsin | $58,960 | +$1,523 | $107,183 | +$9,844 |
| Ohio | $58,806 | +$1,369 | $107,442 | +$10,103 |
| Oklahoma | $58,763 | +$1,326 | $107,587 | +$10,248 |
| Idaho | $58,726 | +$1,289 | $106,949 | +$9,610 |
| Montana | $58,716 | +$1,279 | $106,677 | +$9,338 |
| Colorado | $58,671 | +$1,234 | $107,239 | +$9,901 |
| Michigan | $58,656 | +$1,219 | $107,667 | +$10,328 |
| Georgia | $58,599 | +$1,162 | $107,055 | +$9,716 |
| Rhode Island | $58,572 | +$1,135 | $107,168 | +$9,829 |
| New Jersey | $58,491 | +$1,054 | $105,606 | +$8,267 |
| Pennsylvania | $58,488 | +$1,051 | $107,581 | +$10,242 |
| Kansas | $58,207 | +$770 | $106,221 | +$8,882 |
| Alabama | $58,108 | +$671 | $106,556 | +$9,217 |
| Virginia | $58,094 | +$657 | $105,980 | +$8,641 |
| District of Columbia | $58,093 | +$656 | $103,916 | +$6,577 |
| Illinois | $58,025 | +$588 | $106,511 | +$9,172 |
| Indiana | $57,962 | +$525 | $106,501 | +$9,162 |
| California | $57,952 | +$516 | $102,280 | +$4,941 |
| Connecticut | $57,843 | +$406 | $105,291 | +$7,952 |
| Maine | $57,833 | +$396 | $104,337 | +$6,998 |
| New York | $57,784 | +$347 | $105,538 | +$8,199 |
| Massachusetts | $57,718 | +$281 | $105,821 | +$8,482 |
| Minnesota | $57,686 | +$249 | $104,189 | +$6,850 |
| Delaware | $57,684 | +$247 | $104,632 | +$7,293 |
| Kentucky | $57,435 | −$2 | $105,359 | +$8,020 |
| Hawaii | $57,048 | −$389 | $103,473 | +$6,134 |
| Maryland | $55,994 | −$1,443 | $102,075 | +$4,736 |
| Oregon | $55,338 | −$2,099 | $100,195 | +$2,856 |
How the two tax systems differ
| United Kingdom | United States | |
|---|---|---|
| Tax year | 6 April 2026 – 5 April 2027 | 1 January – 31 December 2026 |
| Filing a tax return | 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. | 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). |
| Consumption tax | VAT 20% (reduced: 5% (e.g. home energy, children’s car seats); 0% on most food and children’s clothes) | 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. |
| Retirement | 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. | 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. |
| Healthcare | 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. | 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. |
| Capital gains | Gains above the £3,000 annual exempt amount are taxed at 18% within the basic-rate band and 24% above it. | 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. |
Frequently asked questions
Is United Kingdom or United States better for taxes?
At $100,000, United States leaves you $7,243 more per year after income and payroll taxes. The gap widens at higher incomes ($35,952 at $250,000).
How much is $60,000 after tax in United Kingdom and United States?
$47,846 in United Kingdom and $50,390 in United States.
Sources
Figures are taken from official government publications and were last reviewed on 2026-10-03.
- 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
- 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)
- 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
- Rev. Proc. 2025-32 (2026 inflation adjustments incl. OBBBA)
- IRS: Tax inflation adjustments for tax year 2026, including OBBBA amendments