Moving to United Kingdom from the US: the money math
Updated July 2026 · computed from cityparity's engine data at London rates
The UK reads familiar to Americans: English-speaking, salary-driven, private-ish childcare. The differences hide in the plumbing: NHS coverage with no premium, 25 statutory vacation days, and a tax ladder that bites harder than US federal but includes what your US premium never did.
The short version
- Effective tax at a $150k-equivalent salary: 32.6% (single filer, London, no regime applied).
- Inbound tax regime: no real salary relief, see the honest note below for 4 years.
- Childcare: GBP 1,550/mo full-time preschool (free childcare hours plus tax-free childcare top-up).
- Time off: 25 vacation days + 8 holidays, parental leave 52 weeks at 40% (≈ 21 full-pay weeks).
- Healthcare: universal, not tied to your job.
- Run your own salary and family for the number that actually decides it.
What a salary actually keeps
Single filer, London rates, salary converted at current exchange rates and run through the real brackets and employee contributions, no special regime applied:
| US-equivalent salary | Effective tax rate | Net (USD-equivalent) |
|---|---|---|
| $100,000 | 27.9% | $72,095 |
| $150,000 | 32.6% | $101,095 |
| $250,000 | 38.0% | $154,949 |
Gross-to-gross comparisons stop here. The lines below are why they mislead: they all move money in ways no salary number shows. The concept that nets everything out is the equivalent salary.
The tax regime question
The UK's 4-year Foreign Income and Gains (FIG) regime (replaced non-dom on 6 Apr 2025) relieves only FOREIGN income and gains, not a UK-earned salary. A new arrival working in the UK pays standard Income Tax + National Insurance on their pay; Overseas Workday Relief covers only duties physically performed abroad. So this regime does not change the local take-home shown here.
How the regimes across Europe compare, what each is worth, and where the expiry cliffs are: expat tax breaks, decoded.
Childcare: free childcare hours plus tax-free childcare top-up
Full-time preschool-age care runs about GBP 1,550 a month at our London rate, and the engine counts about GBP 2,000 a year of standing subsidy against it. Set that against $1,650 to $2,400 a month in major US metros, paid from after-tax income, with help that cliffs out at moderate incomes. The full family math is in what it really costs to raise kids, and the by-country table is at childcare costs by country.
Healthcare
Coverage is universal and funded through the taxes already counted above. Typical out-of-pocket spending is about GBP 400 a year, and none of it is tied to your job. For contrast, KFF puts the average US worker's share of a family premium at $6,850 a year before deductibles.
Time off, priced
25 vacation days plus 8 public holidays, against a US norm of 26 with no statutory floor. Parental leave runs 52 weeks at an effective 40%, roughly 21 weeks at full pay, and families receive about GBP 1,407 per child per year in cash benefits. What that time is worth at your salary: the hidden paycheck.
Run a real comparison
Worked city-level comparisons against US cities, with take-home, costs, and the safety net netted out:
Or run your own salary and family through the calculator →
FAQ
How much tax will I pay in United Kingdom?
At the local equivalent of a $150,000 salary, our engine computes an effective income-plus-payroll rate of about 32.6% for a single filer in London, before any special regime. There is no special inbound regime to soften it.
Does United Kingdom have a tax break for foreign workers?
The UK's 4-year Foreign Income and Gains (FIG) regime (replaced non-dom on 6 Apr 2025) relieves only FOREIGN income and gains, not a UK-earned salary. A new arrival working in the UK pays standard Income Tax + National Insurance on their pay; Overseas Workday Relief covers only duties physically performed abroad. So this regime does not change the local take-home shown here.
How much does childcare cost in United Kingdom?
Full-time preschool-age care runs about GBP 1,550 a month at our engine's London rate, before an annual subsidy of about GBP 2,000.
How does healthcare work in United Kingdom for a family?
Coverage is universal and funded through the tax system; typical out-of-pocket spending is about GBP 400 a year and is not tied to your job.
Figures come from cityparity's per-city engine, computed from official sources with a per-value audit trail; currency conversions use rates from 2026-07-06 and drift daily. Treat any single number as a strong estimate and run your own. See the methodology.