Moving to the UK from the US: What Happens to Your Pay
Updated May 31, 2026 · 7 min read
Moving from the US to the UK, you’ll generally keep a smaller share of your salary — but a chunk of that difference buys something Americans pay for separately: healthcare. Here’s what changes about your pay.
The headline: a smaller take-home %
On a like-for-like 100k salary, UK take-home is around 69% versus roughly 79% in a no-tax US state — see UK vs US salary. But there’s no health insurance bill and no state income tax.
What changes in your pay
- National Insurance replaces FICA. 8% on earnings £12,570–£50,270, then 2% above — see NI explained.
- Personal allowance instead of the standard deduction. The first £12,570 is tax-free; then 20% / 40% / 45% bands.
- No state tax. One income tax, applied UK-wide (Scotland has its own bands).
- Workplace pension via auto-enrolment replaces your 401(k).
The big one for US citizens: you still file US taxes
The US taxes its citizens on worldwide income wherever they live. You’ll keep filing a US return alongside your UK taxes — though the Foreign Earned Income Exclusion and foreign tax credits usually prevent double taxation. This is the single most important thing to get advice on before you move.
💸 Moving money between countries?
Moving money between US and UK accounts — or getting paid in dollars while living in pounds — A service like Wise gives you the real mid-market exchange rate with low, transparent fees — typically far cheaper than a high-street bank, and it works across the US, UK, Australia and Canada.
Run your numbers
Model your UK offer with the UK calculator, compare it to your US pay with the US calculator, or see the full take-home by country picture.
Calculate your own take-home pay
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