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United Kingdom vs United States
Tax Rate Comparison

Enter your income below for a personal tax estimate, then scroll down for full rate breakdowns.

🇬🇧 United Kingdom
vs
🇺🇸 United States
Tax Year:

💰 Personal Income Tax Calculator

Enter your income to see your estimated annual tax liability in each country — side by side.

Enter your annual income above to see your personal tax comparison →

Individual Income Tax (Top Marginal Rate)

Top Income Tax Rate
0–45%
Thresholds remain frozen; fiscal drag continuing
No change
10–37%
TCJA provisions extended; no sunset
No change

VAT / GST / Sales Tax

VAT / GST / Sales Tax
0–20%
Standard 20% maintained
No change
0–11%
No federal sales tax; state avg ~6–9%
No change

Corporate Tax Rate

Corporate Tax Rate
19–25%
25% main rate; possible future reform discussions
No change
21%
Federal flat; proposals to raise to 28% stalled
No change

Capital Gains Tax

Capital Gains Tax
18–24%
Post-Oct 2024 rates in full effect
No change
0–20%
+ 3.8% NIIT; thresholds inflation-adjusted
No change

Social Security & Payroll

Social Security / Payroll
~28.3%
15% employer NI; lower secondary threshold remains
No change
~15.3%
SS wage base ~$180,000 est. 2026
No change
State, Regional & Local Taxes

🇬🇧 United KingdomDevolved, Council & Business Rates

Scotland sets its own income tax bands (six bands; top rate 48%). Wales has limited income tax-varying powers. Northern Ireland follows UK rates. All residents pay Council Tax to local authorities (typically £1,200–£4,000+/year). Business rates are set nationally but collected locally. SDLT applies to property purchases (LBTT in Scotland, LTT in Wales).

🇺🇸 United StatesState & Local Taxes

The U.S. has 50 states each setting their own income tax (0%–13.3%). California tops at 13.3%, while Texas, Florida, and Nevada levy no state income tax. NYC adds its own income tax (up to 3.876%). Sales taxes vary from 0% (Oregon) to over 11% combined. Property taxes are primarily local. Some states like Washington have introduced capital gains levies.

⚠️ Disclaimer: Rates shown are standard top/headline rates for informational purposes. Actual tax liability depends on income level, residency, deductions, and tax treaties. 2025–2026 data reflects announced or enacted rates and may be subject to change. Not financial or legal advice.

United Kingdom vs United States: Key Tax Differences (2026)

💰 Income Tax: 🇬🇧 United Kingdom has a higher top income tax rate (0–45% vs 10–37%). 🇺🇸 United States is more favourable for high earners.

🛒 VAT/Sales Tax: United Kingdom has a higher consumption tax (0–20% vs 0–11%).

🏢 Corporate Tax: 🇺🇸 United States offers a lower corporate rate (21% vs 25%), which can influence business location decisions.

📈 Capital Gains: 🇺🇸 United States taxes investment gains at a lower rate (20% vs 24%), benefiting investors.

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All 🇬🇧 United Kingdom comparisons →All 🇺🇸 United States comparisons →