United States
AmericasUnited Kingdom
EuropeUnited States vs United Kingdom Tax Comparison
Summary
5
🇺🇸 United States
1
Ties
1
🇬🇧 United Kingdom
🇺🇸 United States has lower tax rates in more categories
Tax Rates Comparison
| Category | 🇺🇸United States | 🇬🇧United Kingdom |
|---|---|---|
| Top Income Tax Rate | 37%Lower | 45% |
| Corporate Tax Rate | 21%Lower | 25% |
| VAT / Sales Tax | 0%Lower | 20% |
| Capital Gains Tax | 20% | 20% |
| Employee Social Security | 7.65%Lower | 8% |
| Employer Social Security | 7.65%Lower | 13.8% |
| Self-Employed Social Security | 15.3% | 9%Lower |
Living Indicators
| Category | 🇺🇸United States | 🇬🇧United Kingdom |
|---|---|---|
| Cost of Living Index | 72Lower | 75 |
| Quality of Life Index | 72 | 70Lower |
| Tax Treaties | 66Lower | 130 |
Income Tax Brackets
United States
Federal rates only. State taxes add 0-13.3% (California highest). No state tax in FL, TX, NV, WA, WY, SD, AK, NH, TN.
United Kingdom
Personal allowance tapers off above 100k GBP. Scotland has different rates.
Special Tax Regimes
United States
Qualified Small Business Stock (QSBS)
Up to 100% exclusion of capital gains (up to $10M) on qualifying small business stock held 5+ years.
Foreign Earned Income Exclusion (FEIE)
Exclude up to $126,500 (2024) of foreign earned income if living abroad.
United Kingdom
Non-Domiciled (Non-Dom) Status
Being reformed from April 2025. New residence-based regime replacing the remittance basis. 4-year FIG regime for new UK residents.
Digital Nomad Visa
Disclaimer: This content is for informational purposes only and does not constitute tax advice. Tax laws change frequently. Always consult a qualified tax professional before making decisions about your tax residency or obligations.
Data last updated: United States (2024-01) · United Kingdom (2024-01)