Country pair example
US vs UK After Tax Salary Example
A worked example shows how the same gross salary can translate into different net pay in the US (federal only) and the UK, and why FX snapshots matter for conversions. 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 vary by state and city and can materially change take home pay.
- See the Privacy Policy for handling details.
Open the salary after tax calculator
Run US and UK scenarios, compare net and FX adjusted views.
Quick answers: US vs UK after tax salary example
- Compare net pay first, then look at FX adjusted numbers.
- US federal only results can change a lot when state taxes are added.
- FX snapshots change converted results.
- Cost of living is the next layer.
The scenario setup
This example uses one rounded annual gross salary, annual frequency, and a 5% retirement contribution. It illustrates how the calculator displays net pay and FX adjusted views for the US (federal only) and the UK. Replace these with your own numbers.
// Illustration inputs
grossSalary = 90,000
payFrequency = annual
retirementPercent = 5%
origin or destination: US and UK scenarios
Worked example results (illustrative)
Numbers below are rounded and simplified to match the calculator style. They do not include every allowance, benefit, or payroll item.
| Country | Gross (local) | Retirement % | Est. tax & deductions (simplified) | Est. net (local) | Notes |
|---|---|---|---|---|---|
| US (federal only) | $90,000 | 5% | Federal income tax only (simplified) | $62,xxx | No state or city tax; employer benefits not included. |
| UK | £90,000 | 5% | Income tax + NI (simplified) | £56,xxx | Does not include every allowance or benefit. |
What “federal only” means
- Federal income tax is one layer; many states and cities add another.
- Payroll deductions, benefits, and health costs vary by employer.
- Real take home pay can be lower when those layers are applied.
- See the US federal model overview and FAQ for limits.
FX sensitivity mini example
FX snapshots can shift converted results even if the local net stays the same. Treat this as directional.
| FX snapshot | Converted amount (illustrative) | What changed |
|---|---|---|
| $1 = £0.79 | £49,xxx | Baseline snapshot. |
| $1 = £0.82 | £50,xxx | Converted net rises when USD strengthens; reverse if it weakens. |
Learn more in the FX snapshot explainer.
What to check next
- Rerun the scenario with a different retirement percent.
- Note the FX snapshot date and rerun on another day.
- Compare cost of living with the cost of living tool.
- Review US and UK model notes.
- Read the FAQ for edge cases and limits.
Common mistakes to avoid
- Comparing gross instead of net.
- Assuming state or city taxes are included.
- Mixing annual and monthly inputs.
- Forgetting the FX snapshot date.
- Expecting the calculator to match a payslip.
- Assuming benefits and deductions are identical across countries.
- Using a bonus month payslip as an annual baseline.
- Treating converted net as purchasing power without costs.
- Drawing a final decision from one run.
- Ignoring that this tool is simplified.
FAQs
Does this include US state taxes? +
No. It is a federal-only illustration and does not include state or city taxes.
Why does FX change my converted salary? +
FX rates move, so the converted destination view changes with each snapshot.
Will this match my payslip? +
Not exactly. Payslips can include employer deductions, benefits, payroll timing, and withholding differences.
Should I compare net or FX adjusted net? +
Start with net in the origin currency, then use FX adjusted net as a directional view only.
Does cost of living change the conclusion? +
Yes. Use the cost of living tool to see how local prices and your basket change the picture.
Where can I see the full FAQ? +
Visit the salary after tax calculator FAQ for more details and common questions.
Final step
Run your own US and UK scenarios, save them, and compare net and FX adjusted views. Add cost of living as a separate layer before making any decision.