US vs UK take-home pay compared
The same nominal salary, taxed under both systems. US figures assume a single filer in a state with no income tax; UK figures use England, Wales and Northern Ireland rates.
| Gross salary | 🇺🇸 US net | 🇺🇸 rate | 🇬🇧 UK net | 🇬🇧 rate |
|---|---|---|---|---|
| 40,000 | $34,179 | 14.6% | £32,320 | 19.2% |
| 60,000 | $50,249 | 16.3% | £45,357 | 24.4% |
| 80,000 | $64,666 | 19.2% | £56,957 | 28.8% |
| 100,000 | $78,736 | 21.3% | £68,557 | 31.4% |
| 150,000 | $113,278 | 24.5% | £91,286 | 39.1% |
Why the UK deducts more
At almost every salary level the UK deducts a larger share of gross pay than the United States. The reason is not simply higher rates — it is that National Insurance funds healthcare and the state pension out of the same deduction, while a US employee typically pays health insurance premiums separately from payroll tax.
Once employer-sponsored health premiums, deductibles and co-pays are added to the American side of the ledger, the disposable-income gap narrows sharply, particularly for families. State tax matters too: switch the US calculator from a no-tax state to California and several percentage points move immediately.
- US: federal brackets 10%–37%, Social Security 6.2% (capped), Medicare 1.45% (uncapped), plus state tax.
- UK: income tax 20%/40%/45% after a £12,570 allowance, National Insurance 8% then 2%.
- UK healthcare is funded through general taxation; US healthcare is usually a separate payroll deduction.
- US take-home varies hugely by state; UK varies only between Scotland and the rest of the UK.