A UK vs US salary comparison goes far beyond simply converting currencies. Tax systems, healthcare, pension contributions, student loans, annual leave, and purchasing power all affect what you actually take home and how far your money stretches. Whether you are considering a transatlantic move or evaluating a remote job offer, this calculator shows the true equivalent salary in both countries.
Salary Input
🇺🇸 US Settings
🇬🇧 UK Settings
Exchange Rate & Purchasing Power
1.15 means $1 buys 15% more in the US than exchange rate suggests
How to Use This UK vs US Salary Comparison
Moving between the UK and the US is a major financial decision, and comparing salaries between the two countries is far more complex than converting currencies. This UK vs US salary comparison tool accounts for the major differences in tax systems, healthcare, retirement contributions, student loans, and purchasing power to give you a true apples-to-apples comparison.
Step 1: Enter Your Salary
Choose whether to enter your salary in US dollars or British pounds, then type in your annual gross salary. The tool will automatically convert to the other currency using the exchange rate you specify. For example, entering $100,000 USD with a 1.27 exchange rate gives a UK equivalent of approximately £78,740.
Step 2: Configure US Settings
Select your US state to account for state income tax. States like Texas and Florida have no state income tax, which can save thousands per year. Enter your healthcare premium (the employee share, typically $3,000-$7,500 per year), your 401(k) contribution percentage, employer match, any student loan payments, and your annual leave days.
Step 3: Configure UK Settings
Toggle Scotland if you live there, as Scottish income tax rates differ from the rest of the UK. Set your workplace pension contribution, employer pension match, and student loan plan if applicable. The UK default of 28 annual leave days includes bank holidays. National Insurance and NHS healthcare costs are calculated automatically.
Step 4: Review the Comparison
The side-by-side breakdown shows every deduction from gross to net for both countries. The purchasing power section adjusts for the fact that everyday goods and services cost different amounts in each country. The hidden benefits section values non-cash differences like extra annual leave, NHS healthcare, and employer pension contributions.
Understanding the Key Differences
The biggest factors in a UK vs US salary comparison are healthcare (free NHS vs $3,000-$7,500/year), annual leave (28 vs 10-15 days), and tax structure. US federal taxes are generally lower for middle incomes, but adding state tax and FICA often narrows the gap significantly. The purchasing power parity adjustment reflects that everyday prices differ between countries beyond what exchange rates capture. All calculations run entirely in your browser — your salary data is never stored or transmitted anywhere.
FAQ
Is this UK vs US salary comparison tool free?
Yes, this salary comparison tool is completely free with no hidden fees, no signup, and no limits. All calculations run locally in your browser, so you can compare as many salaries as you like. Your data stays entirely private on your device.
Is my salary data private?
Absolutely. Everything runs entirely in your web browser using client-side JavaScript. No salary figures or personal data are ever sent to any server or stored anywhere. Your financial details remain completely private on your device.
How does the tool account for healthcare costs?
In the US, employees typically pay around $3,000 to $7,500 per year as their share of health insurance premiums, depending on plan type. In the UK, healthcare is free at the point of use through the NHS, funded through National Insurance contributions. The tool factors this difference into the comparison.
What exchange rate does the calculator use?
The tool uses a default market exchange rate of approximately 1.27 USD per GBP, which you can adjust. It also applies a purchasing power parity adjustment, since the cost of goods and services differs between countries beyond what exchange rates reflect.
Does the calculator include state taxes for the US?
Yes, you can select a US state to include state income tax in the comparison. States like Texas and Florida have no income tax, while California and New York have significant state taxes. This makes a major difference in take-home pay.
How are UK student loans handled in the comparison?
UK student loans are income-contingent, meaning you repay 9% of income above a threshold. In the US, student loan payments are typically fixed monthly amounts. The tool lets you enter UK student loan plan type and US monthly payment to reflect both systems accurately.
What is purchasing power parity and why does it matter?
Purchasing power parity measures how much your money actually buys in each country. Even after converting currencies, everyday goods and services cost different amounts in the UK and US. A PPP factor of 1.15 means US dollars buy about 15% more than the exchange rate alone suggests.
Does the tool account for annual leave differences?
Yes, the hidden benefits section values the difference in annual leave. UK workers get a statutory minimum of 28 days including bank holidays, while US workers typically receive 10 to 15 days. The tool calculates the monetary value of those extra days off based on daily salary rate.