UK vs United States — Tax Comparison 2025/26
United Kingdom: 0%–45% across 5 brackets. United States: 10%–37% across 7 brackets. Compare take-home pay side by side for employees and contractors.
USD amounts use approximate exchange rates (GBP: 1.3567, USD: 1.0000). Local currency figures are exact.
| Metric | United Kingdom | United States |
|---|---|---|
| Gross (GBP/USD) | £73,709 | $100,000 |
| Gross (USD) | $100,001 | $100,000 |
| Income Tax | £16,916 | $13,170 |
| Social Security | £3,485 | $7,650 |
| Net (GBP/USD) | £53,309 | $79,180 |
| Net (USD) | $72,323 | $79,180+$6,857 |
| Effective Rate | 27.7% | 20.8% |
Gross (GBP/USD)
United Kingdom
£73,709
United States
$100,000
Gross (USD)
United Kingdom
$100,001
United States
$100,000
Income Tax
United Kingdom
£16,916
United States
$13,170
Social Security
United Kingdom
£3,485
United States
$7,650
Net (GBP/USD)
United Kingdom
£53,309
United States
$79,180
Net (USD)
United Kingdom
$72,323
United States
$79,180
+$6,857Effective Rate
United Kingdom
27.7%
United States
20.8%
Bottom Line
At $100,000/year income
United States gives you $6,857 more per year ($571/mo) as an employee
United States gives you $366 more per year ($31/mo) as a contractor
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How Taxes Work
United Kingdom Tax System
Employee
- ·Income tax: 20%/40%/45% with £12,570 personal allowance.
- ·Allowance tapers £1 per £2 above £100k (effective 60% rate on £100k–£125,140).
- ·NI Class 1: 8% on £12,570–£50,270, 2% above (no cap).
- ·Frozen through 2027/28.
Contractor
- ·Same income tax and PA taper.
- ·NI Class 4: 6% on £12,570–£50,270, 2% above (no cap).
- ·£1,000 trading allowance.
- ·Frozen through 2027/28.
United States Tax System
Employee
- ·Federal income tax (2026, single filer).
- ·Standard deduction $16,100.
- ·FICA: 6.2% Social Security (capped at $184,500) + 1.45% Medicare (no cap) + 0.9% Additional Medicare Tax above $200,000.
- ·State taxes not included.
Contractor
- ·Self-employment tax: 15.3% (12.4% SS + 2.9% Medicare) on 92.35% of net earnings.
- ·SS capped at $184,500 wage base.
- ·Additional Medicare Tax 0.9% above $200,000.
- ·Half of SE tax is deducted from taxable income.
- ·State taxes not included.
Full United Kingdom Tax Calculator →
Detailed breakdown with custom income
Full United States Tax Calculator →
Detailed breakdown with custom income
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Frequently Asked Questions
Do US or UK remote workers pay more tax?
- ·It depends on income level and employment type.
- ·The US has lower income tax rates but adds FICA (Social Security + Medicare) at 15.3% for self-employed.
- ·The UK has National Insurance plus a hidden 60% marginal rate between GBP 100,000-125,140 due to Personal Allowance taper.
- ·At $100K, they're often surprisingly close.
How does self-employment tax compare between the US and UK?
- ·US self-employed pay 15.3% FICA (12.4% Social Security up to $176,100 + 2.9% Medicare uncapped).
- ·UK self-employed pay Class 2 NI (flat) plus Class 4 NI (6%/2% tiered).
- ·The US typically costs more for self-employed workers at most income levels.
Can I work remotely from the UK for a US company?
- ·Yes, but you'll typically be taxed where you're physically working.
- ·If you're a UK tax resident, you owe UK taxes on worldwide income.
- ·Many US companies hire UK-based workers as contractors.
- ·Neither country has a dedicated digital nomad visa — the UK offers a Global Talent Visa, and the US has O-1/E-2 options.