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🇺🇸 United States vs 🇬🇧 United Kingdom
US earners keep ~$16,500 more than UK at $150k
2026 tax data · Last reviewed: April 1, 2026 · Source: methodology
TL;DR — Key Takeaways
- →At $150,000 salary: US (avg state) take-home ≈ $111,000 vs. UK ≈ $94,500.
- →UK higher-rate band (40%) kicks in at just £50,270 — well below equivalent US 32% bracket threshold.
- →UK personal allowance tapers to £0 above £125,140, creating a hidden 60% marginal rate band.
- →UK National Insurance: 8% on £12,570–£50,270 plus 2% above.
- →UK provides NHS (free at point of use) — a tangible benefit vs. US private health insurance costs.
Net Pay at $150,000 Salary (2026)
🇺🇸
United States
$111,000
estimated net take-home
Top rate: 37%
🇬🇧
United Kingdom
$94,500
estimated net take-home
Top rate: 45%
Annual delta at $150,000
🇺🇸 United States saves $16,500/year
Over 10 years at 7% compounding: $243,870 more
Key Tax Differences
| Factor | 🇺🇸 United States | 🇬🇧 United Kingdom |
|---|---|---|
| Top income tax rate | 37% | 45% |
| Effective rate at $100k | 18% | 28% |
| Taxation basis | Worldwide | Worldwide |
| Special regimes | Foreign Earned Income Exclusion (FEIE) | Remittance Basis (Non-Domiciled) |
🇺🇸 United States — Key Tax Facts
- →US citizens and Green Card holders owe US tax on worldwide income regardless of where they live.
- →Federal income tax: 10%–37% progressive brackets; standard deduction $16,150 for single filers (2026).
- →FICA (Social Security + Medicare): 7.65% employee share on wages up to $184,500 (SS cap).
- →State income tax: ranges from 0% (Florida, Texas, Nevada) to 13.3% (California).
- →Foreign Earned Income Exclusion: up to $132,900 excluded for qualifying expats (2026).
- →Self-employed pay 15.3% self-employment tax (both sides of FICA).
🇬🇧 United Kingdom — Key Tax Facts
- →Income tax: 0% personal allowance (£12,570), then 20%/40%/45% progressive rates.
- →Personal allowance tapers to £0 for income above £125,140 — effective 60% marginal rate between £100k–£125,140.
- →National Insurance: 8% employee Class 1 on earnings £12,570–£50,270; 2% above £50,270.
- →Employer NI: 13.8% on earnings above £9,100 (no cap).
- →Statutory Residence Test: complex 4+8 test system — not just 183 days.
- →No capital gains tax on primary residence; 18%/24% on other assets.
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Estimates assume a single filer with no dependents and no treaty benefits. Not tax advice. See methodology.