On federal tax and FICA alone the US keeps more at essentially every salary, and the lead widens with income: 4.5 points at the equivalent of £50,000, 13.9 points at £200,000.
Then the state changes everything. On the same $160,800 salary an employee keeps 75.4% in Texas and 66.5% in New York. That 8.9 point spread is wider than the entire UK to US gap at mid salaries.
Federal-only gap at £120,000
11.9 pts
75.4% against 63.5%
Texas to New York spread
8.9 pts
same salary, same federal tax
New York against the UK
3.0 pts
at £120,000, much narrower
Run a US offer with the actual state applied.
Open the US take-home calculatorFederal tax and FICA only
The share of gross kept, before any state income tax. This is the best case for the US side and the right starting point, since it isolates what the federal system does.
| Equivalent salary | UK keeps | US keeps | US advantage |
|---|---|---|---|
| £30,000 | 83.7% | 85.8% | 2.0 pts |
| £50,000 | 79.0% | 83.5% | 4.5 pts |
| £80,000 | 71.2% | 78.6% | 7.4 pts |
| £120,000 | 63.5% | 75.4% | 11.9 pts |
| £200,000 | 58.9% | 72.8% | 13.9 pts |
The widening is mostly the UK's doing. The personal allowance taper between £100,000 and £125,140 produces an effective 60% marginal rate, while US federal brackets rise more gently and the Social Security half of FICA stops at the wage base.
The state decides how big the advantage is
The same $160,800, the same federal tax, the same FICA. Only the state changes.
| State | Keeps | Net a year |
|---|---|---|
| Texas, Florida or Washingtonno state income tax | 75.4% | $121,173 |
| California | 68.5% | $110,081 |
| New York | 66.5% | $106,866 |
Put that next to the UK's 63.5% at the same equivalent salary. Texas is 11.9 points better than the UK; New York is 3.0 points better. Both are “a US offer”. Treating them as the same thing is the commonest mistake in this comparison, and New York City levies its own tax on top of the state one.
Health insurance is the missing line
None of these percentages include US health cover, because it is not a payroll tax. It is an employer plan with employee premiums, deductibles and co-pays, and for a family it can run to many thousands of dollars a year. UK taxation funds the NHS; US FICA does not fund an equivalent. Get the plan details and the employee premium in writing before treating the US advantage as real money.
The same three salaries in cash
Converted at £1 = $1.3276, European Central Bank reference rates, 23 September 2026, federal tax and FICA only. Check the live rate; the percentages above do not move with it.
| UK gross | US gross | UK net | US net |
|---|---|---|---|
| £50,000 | $66,382 | £39,520 (£3,293/mo) | $55,518 ($4,626/mo) |
| £80,000 | $106,210 | £56,957 (£4,746/mo) | $83,549 ($6,962/mo) |
| £120,000 | $159,316 | £76,157 (£6,346/mo) | $120,158 ($10,013/mo) |
How these figures were produced
PayMetric Labs' own calculations with our UK and US tax engines at 2026 rates, for a single filer taking the standard deduction, with federal income tax and FICA, plus state income tax only where a state is named. No 401(k) contributions, health insurance premiums or city taxes; no UK pension contributions, salary sacrifice or student loan.
Compare your own two offers
Use the actual state, and add the employee health premium to the US side before deciding.
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Frequently asked questions
Does the UK or the US leave you with more of your salary?
The US, at essentially every salary above about £23,000, and the advantage widens as you earn. On federal tax and FICA alone, a US employee keeps 83.5% of gross at the equivalent of £50,000 against 79.0% in the UK, and 75.4% against 63.5% at £120,000.
But which US? Does the state change the answer?
Enormously, and it is the single most important variable. On the same $160,800 salary an employee keeps 75.4% in Texas, Florida or Washington, which levy no state income tax, 68.5% in California and 66.5% in New York. That 8.9 point spread between Texas and New York is larger than the entire UK to US gap at mid salaries.
So is a New York offer much better than a UK one?
Less than you might assume. At the equivalent of £120,000 New York keeps 66.5% against the UK's 63.5%, a gap of just 3.0 points, while Texas at the same salary keeps 75.4%, a gap of 11.9 points. The same nominal US salary is a very different proposition depending on where you sign the lease.
Why does the US advantage grow with income?
Mostly because of what the UK does rather than what the US does. The UK tapers the personal allowance away between £100,000 and £125,140, producing an effective 60% marginal rate, and applies the additional rate above that. The US federal brackets rise more gently across the same range, and the Social Security portion of FICA stops at the wage base, so only the smaller Medicare component keeps accruing.
Is FICA the same as National Insurance?
Similar in role, different in shape. FICA is Social Security plus Medicare, and the Social Security part stops at an annual wage base while Medicare continues with an additional levy for higher earners. UK National Insurance also drops to a lower rate above the upper earnings limit but never stops. The bigger difference is what they buy: US healthcare is overwhelmingly employer-provided or purchased, not funded by FICA the way the NHS is funded from UK taxation.
What about health insurance?
It is the biggest thing missing from any UK to US payslip comparison. US health cover is normally an employer plan with employee premiums, deductibles and co-pays, none of which appear in the percentages on this page. For a family this can run to many thousands of dollars a year and it materially narrows the apparent US advantage. Ask for the plan details and the employee premium before comparing offers.
How reliable is the currency conversion here?
Treat it as illustrative and check the live rate. The percentages are the durable part, because the share of gross you keep does not depend on the exchange rate. The rate used is stated and dated beside the cash table above, and comes from the European Central Bank's daily reference rates.
What does this comparison leave out?
State income tax unless named, and city taxes such as New York City's, which are on top again. Health insurance premiums and out-of-pocket costs. 401(k) contributions and employer matching. UK pension salary sacrifice and student loan repayments. Paid leave, which is statutory in the UK and discretionary in the US. And the cost of living, which varies more within the US than between the two countries.
Figures are PayMetric Labs' own calculations using our UK and US tax engines at 2026 rates, for a single filer taking the standard deduction, against a single UK taxpayer with no pension contributions or student loan. Health insurance, 401(k) contributions and city taxes are excluded. Currency conversions use £1 = $1.3276, European Central Bank reference rates, 23 September 2026 and will drift; the percentages do not depend on the rate. General information only, not personal tax advice.