Country pair example
UK vs US After Tax Salary Example
A worked example shows how the same gross salary can translate into different net pay in the UK and US, and why FX snapshots and model assumptions matter. This is directional, not a verdict on where to work or live.
Published: December 31, 2025 · Updated: December 31, 2025 · By FinToolSuite Editorial
Disclaimer
- Educational purposes only, not financial or tax advice.
- Examples are illustrative and simplified.
- Results depend on your inputs and assumptions and are not guaranteed.
- US taxes can vary by state and city, and UK taxes can vary by payroll and benefits.
- See the Privacy Policy for handling details.
Open the salary after tax calculator
Run UK and US scenarios, then compare net and FX adjusted views.
Quick answers: UK vs US after tax salary example
- Compare net pay first, then look at FX adjusted numbers.
- US state and city taxes can change take home pay.
- FX snapshots change converted results.
- Use cost of living as the next layer.
The scenario setup
For illustration, assume an annual gross of $90,000 (or £70,000 equivalent concept), annual frequency, and a 5% pension/retirement percent. Origin and destination are set to UK and US to show how net and FX adjusted numbers differ. This is a simple snapshot, not a forecast.
Worked example results
| Country | Gross (local) | Pension percent | Estimated tax and deductions (simplified) | Estimated net (local) | Notes |
|---|---|---|---|---|---|
| UK | £70,000 | 5% | £19,000 | £51,000 | Simplified; does not include benefits or varying NI bands. |
| US | $90,000 | 5% | $18,000 | $72,000 | Federal-only; no state or city taxes, no employer benefits. |
Illustrative only; rerun with your own inputs. State and city taxes, benefits, and allowances can change real results.
FX sensitivity mini example
| FX snapshot | Converted amount (illustrative) | What changed |
|---|---|---|
| 1.20 USD/GBP | $61,200 (from £51,000) | Higher rate lifts the USD view. |
| 1.10 USD/GBP | $56,100 (from £51,000) | Lower rate reduces the USD view. |
FX snapshots move, so converted numbers move. See the FX snapshot explainer.
What the model may miss
- US state and city taxes are excluded here.
- Specific allowances and credits are simplified.
- Employer benefits and deductions are not modeled.
- Health insurance and retirement plan details vary.
See the UK overview and US overview, plus the salary FAQ.
What to check next
- Run a second scenario with a different pension percent.
- Rerun on a different day to see FX movement.
- Compare cost of living with the cost of living tool.
- Review UK and US tax model pages.
- Read the FAQ for edge cases.
Common mistakes
- Comparing gross not net.
- Ignoring state taxes.
- Assuming NHS vs private insurance costs are included.
- Mixing annual and monthly inputs.
- Forgetting the FX snapshot date.
- Expecting payslip matching.
- Assuming benefits are identical.
- Using a bonus month payslip as annual.
- Treating converted net as purchasing power.
- Drawing a final decision from one run.
Privacy and safe handling
- Keep scenario labels generic.
- Export files carefully and avoid personal identifiers.
- Review the Privacy Policy before sharing.
FAQs
Does the US result include state taxes?
No. State and city taxes are outside this simplified example.
Why does FX change my converted salary?
Exchange rates move, so a new snapshot changes the conversion.
Will this match my payslip?
No. Payslips include employer deductions, benefits, and timing differences.
What about health insurance deductions?
They are not included here; real payroll may deduct them.
Should I compare net or FX adjusted net?
Start with net in origin currency; use FX adjusted net for direction only.
Where can I see full FAQ?
Read the salary after tax calculator FAQ.
Is this relocation advice?
No. This is educational and does not recommend relocation.
Try the salary after tax calculator
Estimate net pay, see FX snapshots, and export your scenarios.