US vs UK Take-Home Pay in 2025

Relocating between the United States and United Kingdom? Compare tax brackets, social contributions and net salary outcomes before you decide.

Accurate Data
100% Private
Instant Results

Key differences at a glance

The US pairs federal income tax with FICA (Social Security + Medicare). Individual states may add their own deductions, which can dramatically shift net pay. The UK’s Pay As You Earn system bundles income tax and National Insurance Contributions (NIC) into a single payroll deduction, while pension auto-enrolment adds another layer for most employees.

Healthcare is another cornerstone. Americans typically pay insurance premiums with a mix of employer contributions and pre-tax payroll deductions. UK employees fund the National Health Service through general taxation, although private insurance is common in larger metro areas. When evaluating offers, factor in the cash equivalent of employer-provided benefits on both sides.

Representative salary scenarios

Use the scenarios below as directional guides, then plug the exact salary into the US calculators and relevant UK city calculators for precise numbers.

Scenario A: $90,000 USD vs £70,000 GBP

  • United States: federal tax + FICA reduces take-home to roughly $67,300 (25% headline tax rate).
  • United Kingdom: income tax + NIC leaves about £52,900 net (24% headline tax rate).
  • Currency-adjusted comparison shows UK take-home equivalent of ~$67,200 before factoring housing or healthcare.

Scenario B: $140,000 USD vs £105,000 GBP

  • US higher rate bracket introduces 24% federal + 7.65% FICA, yielding ~$99,800 net after standard deduction.
  • UK employees move into 40% higher-rate band after £50,270, with NIC tapering above £50,270; net settles near £70,500.
  • Employer pension matches can offset the difference—ensure contribution rates are mirrored before switching.

Scenario C: Tech contractor with stock compensation

  • US RSUs taxed as ordinary income on vesting; supplemental withholding often 22% then trued-up at tax return.
  • UK RSUs subject to PAYE and employee NIC; employers must also account for employer NIC (~13.8%), which can affect offer structure.
  • Model vesting events separately from salary to avoid underestimating the final liability in each jurisdiction.

Checklist before you relocate

  1. Confirm if the employer offers tax equalisation or gross-up arrangements for relocation.
  2. Understand pension or retirement plan matching rules and vesting schedules in each country.
  3. Review allowances for housing, schooling, or healthcare supplements when moving to high-cost cities.
  4. Get clarity on payroll currency and exchange rate policies.
  5. Use the overtime and bonus calculators on PaycheckCalculate to estimate performance pay impact.

With a clear view of tax mechanics and employer programs, you can negotiate from a position of confidence and avoid surprise liabilities during your first filing season abroad.