UK vs US Tax Comparison — Take-Home Pay at Every Salary Level
Both the UK and US use progressive tax systems, but they are structured very differently. The UK combines income tax and National Insurance, while the US layers federal income tax, Social Security (6.2%), Medicare (1.45%), and often state income tax on top.
This table compares take-home pay at key salary levels using a fixed illustrative conversion of £1 = $1.27. The US column shows federal taxes only (single filer, 2026 brackets) — no state income tax is included, which means real US take-home is often lower than shown.
UK figures use 2026/27 HMRC rates for England, Wales & Northern Ireland.
Take-home pay comparison
| Gross Salary | UK | US (Federal Only) | Difference (UK − US) | ||||
|---|---|---|---|---|---|---|---|
| Income Tax | NI | Take-Home | Federal Tax | SS + Medicare | Take-Home | ||
| £30,000 $38,100 | £3,486 | £1,394 | £25,120 (16.3% eff.) | $2,392 | $2,914 | $32,793 (£25,821, 13.9% eff.) | £701 |
| £40,000 $50,800 | £5,486 | £2,194 | £32,320 (19.2% eff.) | $3,916 | $3,887 | $42,998 (£33,857, 15.4% eff.) | £1,537 |
| £50,000 $63,500 | £7,486 | £2,994 | £39,520 (21.0% eff.) | $5,440 | $4,858 | $53,202 (£41,891, 16.2% eff.) | £2,371 |
| £60,000 $76,200 | £11,432 | £3,211 | £45,357 (24.4% eff.) | $7,934 | $5,829 | $62,437 (£49,163, 18.1% eff.) | £3,806 |
| £75,000 $95,250 | £17,432 | £3,511 | £54,057 (27.9% eff.) | $12,125 | $7,287 | $75,838 (£59,715, 20.4% eff.) | £5,658 |
| £100,000 $127,000 | £27,432 | £4,011 | £68,557 (31.4% eff.) | $19,214 | $9,716 | $98,071 (£77,221, 22.8% eff.) | £8,664 |
| £125,000 $158,750 | £42,432 | £4,511 | £78,057 (37.5% eff.) | $26,834 | $12,145 | $119,772 (£94,309, 24.6% eff.) | £16,252 |
| £150,000 $190,500 | £53,703 | £5,011 | £91,286 (39.1% eff.) | $34,454 | $14,201 | $141,845 (£111,689, 25.5% eff.) | £20,403 |
| £200,000 $254,000 | £76,203 | £6,011 | £117,786 (41.1% eff.) | $52,584 | $15,608 | $185,808 (£146,306, 26.8% eff.) | £28,520 |
Conversion rate: £1 = $1.27. US figures are for a single filer using 2026 federal brackets with the $16,100 standard deduction. No state tax included.
Key differences between UK and US taxes
Healthcare costs are outside this comparison
The table compares payroll deductions only. It does not assign a monetary value to UK public healthcare or subtract US employee health-insurance premiums, deductibles, copays, or other out-of-pocket costs. Those costs vary substantially by employer, plan, household, and medical usage, so they should be considered separately.
No state income tax in the UK
The UK has one national income tax system (with Scotland setting its own rates). There is no equivalent of US state income tax. In the US, state tax rates range from 0% (Texas, Florida, Nevada, etc.) to 13.3% (California). This means the US column above is the best case — residents of high-tax states keep significantly less.
What the payroll taxes fund
UK National Insurance contributions help determine entitlement to the State Pension and certain benefits. US Social Security (6.2%) and Medicare (1.45%, plus an additional 0.9% above the applicable threshold) fund different federal programmes. The deductions are not directly equivalent, so this page compares cash deductions rather than benefits.
US state tax variation
The following US states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. On the other end, California charges up to 13.3%, New York City adds its own city tax on top of New York State tax, and Oregon charges up to 9.9%. For a fair comparison, you would need to add these to the US column.
Costs excluded from the model
A fair personal comparison needs more than federal payroll deductions. In particular, this table excludes:
- US state and local income taxes, which depend on where you live.
- Health-insurance premiums and out-of-pocket healthcare costs.
- Tax credits, itemised deductions, pension contributions, and employer benefits.
- Student-loan repayments and differences in household filing status.
Treat the results as an illustration of two tax systems under stated assumptions, not as a relocation or financial-planning calculation.
Disclaimer
Exchange rates fluctuate — the £1 = $1.27 rate used here is approximate. US figures are federal only (single filer, standard deduction, 2026 brackets). This is a simplified comparison — both systems have deductions, credits, allowances, and exemptions not shown here. UK figures do not include student loan repayments or pension contributions. Always consult a qualified tax professional for personal advice.
Sources: IRS 2026 federal tax adjustments, IRS Social Security and Medicare rates, and HMRC income tax rates.