United Kingdom vs Canada: Tax Comparison

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On a $100,000 salary, you'd take home $72,137 in United Kingdom versus $70,904 in Canada.

United Kingdom

$72,137

+$1,232/year

Canada

$70,904

That's $103 more per month in United Kingdom

Side-by-side breakdown

Highest Take-Home

United Kingdom

2025-26 · London

27.9%

effective tax rate

Take-home
$72,137

$6,011/mo

Income 23% Social 5%

Canada

2025 · Ontario

29.1%

effective tax rate

Take-home
$70,904

$5,909/mo

Income 16% State 7% Social 4% Other 1%

Tax rate by income level

Effective Tax Rate by Income

Shows effective tax rate (total tax / gross income) at different income levels in USD

Understanding the difference

Life & Taxes

A Tale of Two Shores

Whether you are drawn to the historic charm of London’s cobblestone streets or the breathtaking wilderness of the Canadian Rockies, both nations are magnets for ambitious professionals and young families seeking a high quality of life. The UK offers a gateway to European culture and fast-paced city living, while Canada promises a more rugged, outdoorsy lifestyle with a reputation for being exceptionally welcoming to new arrivals.

Pints vs. Poutine

Life in the UK is defined by its vibrant pub culture and walkable urban centers, where history is literally around every corner. Conversely, Canadian life often centers on the great outdoors and a slightly slower pace, offering expansive spaces and a community-focused vibe that makes it a top choice for those looking to escape the relentless hustle of European capitals.

The Tax Man Cometh

The UK keeps things relatively simple with a three-tier national system, but high earners should watch out for the 'stealth' tax as their personal allowance disappears. Canada’s system is more complex, layering federal taxes on top of provincial ones, which can lead to a surprising bill depending on which province you decide to call home.

Safety Nets and Perks

In the UK, your National Insurance contributions power the legendary NHS, providing healthcare that is free at the point of use. Canada offers a similar peace of mind with its public healthcare system and robust pension plans, ensuring that while you may pay into the system, you are buying into some of the world's most stable social safety nets.

The Ultimate Verdict

If you prefer a straightforward tax code without regional surprises, the UK’s centralized system is hard to beat. However, if you value a graduated approach that feels more nuanced—and you don't mind a bit of provincial math—Canada’s lower top federal rate might just make the Great White North your financial winner.

Detailed tax breakdown

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