United States vs United Kingdom: Tax Comparison

Compare income tax rates and take-home pay between United States and United Kingdom

vs

On a $100,000 salary, you'd take home $73,812 in United States (California) versus $72,211 in United Kingdom (London) — a difference of $1,601/year ($133/month).

Tax Breakdown Comparison

United States

2025 tax year

Lower Tax

Take-Home Pay

$73,812

$6,151/mo

Effective Rate

26.2%

of gross

Gross$100,000
Income Tax -$13,449
California Tax -$3,989
Social Contributions -$8,750
Total -$26,188

United Kingdom

2025-26 tax year

Take-Home Pay

$72,211

$6,018/mo

Effective Rate

27.8%

of gross

Gross$100,000
Income Tax -$23,083
Social Contributions -$4,706
Total -$27,789

Effective Tax Rate by Income

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

Life & Taxes

What it's like to live and earn in each country

Chasing the Atlantic Dream

From ambitious techies flocking to the Golden State to creative professionals seeking the historic charm of London, the US-UK corridor is a highway for dreamers. Whether you are after the high-octane hustle of American innovation or the sophisticated, global connectivity of Britain, both nations offer a magnetic pull for those looking to level up their careers.

Vibe Check: Sunshine vs. Pubs

Life in California is all about that outdoor, health-conscious lifestyle where the scale of everything—from the cars to the coastline—is massive. In contrast, the UK offers a more compact, walkable way of life centered around cozy neighborhood pubs and a deep sense of history that makes even a trip to the local market feel like a walk through time.

The Tax Bracket Tango

The American system is a complex puzzle with seven federal layers plus state taxes, whereas the UK keeps things simple with just three main tiers. While the US offers a generous standard deduction that lets you keep more of your early earnings, the UK's 'personal allowance' system is brilliant until you hit the high-earner trap where your tax-free buffer starts to vanish.

Hidden Perks and Safety Nets

In the UK, your National Insurance contributions give you access to the NHS, meaning you never have to worry about a medical bill after a weekend mishap. Meanwhile, your US contributions focus heavily on retirement security, leaving you to navigate a private healthcare landscape that offers world-class speed and technology if you have the right employer-backed plan.

The Ultimate Bottom Line

High flyers often find the US more lucrative due to lower top-tier federal rates and higher salary ceilings, despite the added layer of state-level taxes. However, for those who value simplicity and a robust social safety net without the paperwork headache, the UK’s streamlined system provides a peace of mind that is hard to put a price on.

Try other incomes:

Compare all 140+ countries

See how United States and United Kingdom rank globally

Related Comparisons

United States vs United Kingdom: Tax System Details

United States

Tax Year
2025
Currency
USD
Region Used
California
Key Assumptions
  • -Federal rates and brackets based on OBBBA 2025 updates for Single filers.
  • -California (CA) used as the representative subnational region.
  • -California state tax brackets and standard deduction are based on 2024/2025 inflation-adjusted estimates.
  • -Social Security (OASDI) wage base for 2025 is $176,100.
  • -California State Disability Insurance (SDI) 2025 rate of 1.1% included (contribution cap removed since 2024).
  • -Additional Medicare Tax (0.9%) is applied to wages exceeding $200,000 for single filers.
  • -Standard Deduction used for both Federal and State; itemized deductions (SALT, mortgage interest) excluded per worker profile.

United Kingdom

Tax Year
2025-26
Currency
GBP
Region Used
London
Key Assumptions
  • -2025/26 tax year rates for England, Wales, and Northern Ireland used for national income tax.
  • -London selected as representative region; however, no regional income tax applies (rest of UK rates).
  • -Personal allowance tapers by £1 for every £2 of income exceeding £100,000.
  • -National Insurance Class 1 (Employee) rates applied for standard employees.
  • -Council tax is excluded as it is property-based rather than income-based.
  • -Self-employed contributions (Class 2 and Class 4 NICs) are excluded per the worker profile.

Calculation Methodology

What's Included

  • Federal/national income tax
  • State, provincial, or local taxes
  • Social security contributions
  • Healthcare levies (where mandatory)
  • Additional surcharges

Assumptions

  • Single filer, no dependents
  • Employment income only
  • Standard deductions applied
  • Age 35 (where relevant)
  • No special tax credits