Comparisons
US vs UK Take-Home Pay — A Real Comparison
How US federal+state tax and FICA stack up against UK income tax and National Insurance at several salary levels.
9 min read · Reviewed April 2026
Headline rates favour the US — usually
On paper, the US often takes a smaller share of a middle income than the UK, especially in no-income-tax states. UK workers face 20% then 40% income tax plus National Insurance, while a US worker pays federal tax, FICA and (sometimes zero) state tax.
But it's not that simple: high-tax US states like California can narrow or erase the gap, and the comparison changes a lot with income level.
What the US salary has to cover
The bigger difference is what your take-home must pay for. In the UK, the NHS provides healthcare funded through tax. In the US, health insurance is typically tied to your job and often comes out of your paycheck — sometimes hundreds of dollars a month — so 'take-home' isn't fully comparable.
Retirement, too: UK National Insurance funds a state pension, while US workers lean more on 401(k) contributions that reduce their own take-home.
Salary level changes the answer
At lower-middle incomes the US generally leaves more cash. At very high incomes, top US state rates plus federal can approach UK levels, while the UK's £100k allowance taper creates a brutal 60% band the US doesn't have.
The honest answer is: run your specific number, in your specific state, and adjust for healthcare.
Related
Frequently Asked Questions
+Is take-home pay higher in the US or the UK?
Usually the US keeps more of a middle income, especially in no-income-tax states — but US take-home must often fund health insurance the UK provides through tax. High-tax US states and the UK's £100k taper narrow the gap at the extremes.
+Does US take-home include healthcare?
No. US health insurance is typically employer-linked and frequently deducted from your paycheck, so headline US take-home overstates disposable income compared with the UK, where the NHS is tax-funded.
Estimate only — not tax advice. Figures are estimates based on publicly available tax rules and may not reflect your full circumstances. See our methodology & sources (last reviewed June 2026). Always confirm with an official tax authority or a licensed adviser before making decisions.