United States vs United Kingdom: take-home pay compared
No comparison on the site carries a bigger caveat than this one. The US numbers below cover federal tax only, so depending on which of the 50 states you actually work in, your real take-home could match the figure shown or come in more than 10 percentage points lower.
Net salary side by side
Figures are calculated using this site's own tax engine for each country - click through to the full calculator to adjust for your exact situation.
| Gross salary | 🇺🇸 United States net/mo | 🇬🇧 United Kingdom net/mo |
|---|---|---|
| 60,000 / 50,000 | $4,194/mo (16.1%) | £3,293/mo (21.0%) |
| 80,000 / 65,000 | $5,402/mo (19.0%) | £4,021/mo (25.8%) |
| 120,000 / 95,000 | $7,745/mo (22.5%) | £5,471/mo (30.9%) |
| 180,000 / 140,000 | $11,183/mo (25.4%) | £7,375/mo (36.8%) |
"Gross salary" is shown in each country's own currency at matching nominal amounts, not currency-converted - useful for comparing two job offers quoted in local currency. Effective rate shown in brackets.
The one caveat that matters most here: state income tax
The US column shows federal tax only, meaning Social Security and Medicare plus federal income tax. It leaves out state income tax, and state rates run from 0% in Texas, Florida, Washington, Nevada and five others up to more than 13% at the top in California. A $120,000 earner in Austin keeps close to the $7,745 a month shown. The same earner in San Francisco loses a good deal more to state tax and could see take-home fall by $500 to $800 a month or more, depending on filing status and local levies.
So the US edge over the UK in the table is genuine in no-income-tax states, but it can shrink sharply or vanish altogether in high-tax states such as California, New York or New Jersey.
Why the effective rates diverge even before state tax
US federal bands are wide, and the 37% top rate only kicks in above $626,350 for a single filer, which is a high bar. The UK reaches 40% at just £50,270 and 45% above £125,140, with a brutal 60% effective rate in between as the personal allowance is clawed back. Even with FICA in the mix (Social Security and Medicare, about 7.65% combined and capped on the Social Security part), federal-only US tax is structurally lighter than the UK's across most professional salaries. The open question is always which state joins the picture.
Frequently asked questions
On federal tax alone the US is clearly ahead at every level shown, for instance $7,745 a month against £5,471 at the $120k/£95k point. But that ignores state income tax, which ranges from 0% to over 13% depending on where you are. In a no-tax state like Texas or Florida the US lead holds up; in California or New York it narrows a lot.
Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming currently levy no state income tax on wages. The same federal salary leaves you with noticeably more in these states than in high-tax ones like California or New York.
Between £100,000 and £125,140 the UK claws back the £12,570 personal allowance at £1 for every £2 earned. Paired with the 40% higher rate, that produces a 60% effective marginal rate over that stretch, even though the headline top rate of 45% sits below the US federal top of 37% (before state tax in most places).
No. These are nominal take-home figures with no purchasing-power adjustment. Neither number reflects US healthcare costs (often employer-subsidised but still carrying real out-of-pocket exposure) or access to the UK's NHS, both of which are a meaningful part of the true financial picture.