UK vs US Salary: Who Takes Home More?

Updated May 31, 2026 · 6 min read

“Should I take the job in London or New York?” The salaries look similar once you convert the currency — but take-home pay, and what that pay has to cover, differ in ways the headline number hides.

Take-home percentage: the US edges it

Compare roughly equivalent salaries — say £60,000 in the UK and $76,000 in the US (similar at typical exchange rates):

UK £60,000: ~£11,432 income tax + ~£3,211 National Insurance → about £45,400 take-home (≈ 76%).
US $76,000 (single, no state tax): ~$8,334 federal tax + $5,814 FICA → about $61,900 take-home (≈ 81%).

So on paper, the US worker keeps a higher share of gross. But that’s only half the story.

What the take-home has to cover

The big asterisk is healthcare. UK National Insurance helps fund the NHS, free at the point of use. In the US, health insurance is usually separate — even with an employer plan, the employee’s share of premiums plus deductibles can run thousands of dollars a year, eating into that higher take-home.

State tax: the US figure above assumes a no-tax state. In California or New York, the US advantage shrinks or disappears — see take-home by state.
Pensions: UK auto-enrolment and US 401(k)s both reduce take-home but build retirement savings.
Cost of living & currency swing the real comparison further.

The honest verdict

US take-home percentages tend to beat the UK’s, especially in no-income-tax states — but once you factor in healthcare costs and higher-tax states, the gap narrows and can reverse. There’s no single winner; it depends on the state, the city and the benefits package.

Run both sides

Compare your own numbers with the UK and US calculators, and read the full breakdowns in our UK take-home guide and US paycheck guide.