Tax Atlas

United Kingdom vs United States: tax comparison for expats

On income tax alone, United States comes out lower at a typical $100,000 income — but it depends on your income and regime. Here is the head-to-head on residency rules, rates and special regimes, each figure sourced.

Effective income tax by income

Gross annual incomeUnited KingdomUnited States
$50,00013.6%11.8%
$100,00024.1%16.9%
$200,00036.3%20.5%

Effective rate = total income tax ÷ gross income, run through each country’s full statutory scale (standard resident regime). Income tax only — excludes social security, deductions and sub-national taxes; cross-currency incomes use an indicative FX snapshot dated 2026-08-20. Try your own income and toggle special regimes →

United Kingdom vs United States, side by side

 United KingdomUnited States
Top income tax rate45%HM Revenue & Customs (GOV.UK)“Additional rate over £125,140 45%”View source · accessed 2026-08-2037%PwC Worldwide Tax Summaries“For individuals, the top federal income tax rate for 2025 is 37%, except for long-term capital gains and qualified dividends”View source · accessed 2026-08-20
Tax-residency day threshold183 daysHM Revenue & Customs (GOV.UK)“you spent 183 or more days in the UK in the tax year”View source · accessed 2026-08-20183 daysInternal Revenue Service (IRS)“You will be considered a United States resident for tax purposes if you meet the substantial presence test for the calendar year. To meet this test, you must be physically present in the United States (U.S.) on at least:”View source · accessed 2026-08-20
Signature tax regimeFIG regime (ex-non-dom): 4 yearsHM Revenue & Customs (GOV.UK)“On 6 April 2025 the 4-year foreign income and gains regime replaced the remittance basis”View source · accessed 2026-08-20Foreign Earned Income Exclusion: USD 132,900 / yearInternal Revenue Service (IRS)“For tax year 2026, the foreign earned income exclusion is $132,900 up from $130,000 for tax year 2025.”View source · accessed 2026-08-20
Digital nomad visaNoNo
Nomad-visa income requirement——

Every figure links to its source and verification date. Full guides: United Kingdom · United States.

Frequently asked questions

Is United Kingdom or United States better for tax?

On income tax alone, United States has the lower effective rate at a $100,000 income (16.9% vs 24.1%). But the right answer depends on your income level, which special regime you qualify for, social security, and treaty relief — see the full comparison below.

Which has the lower tax-residency threshold, United Kingdom or United States?

United Kingdom treats you as tax resident after 183 days, and United States after 183 days. But ties like a home, family or economic centre can trigger residency on fewer days — never rely on a day count alone.

Does United Kingdom or United States have a digital nomad visa?

United Kingdom has no dedicated digital-nomad visa; United States has no dedicated digital-nomad visa. See the "Digital nomad visa" row below for the sourced detail.

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