Take-Home Pay in the US, UK, Canada & Australia

A "$100,000 salary" doesn't mean the same thing in New York, London, Toronto, or Sydney. Each country slices a different amount off the top — and through different mechanisms — so your actual take-home can vary by tens of thousands. If you're comparing job offers across borders, or just curious why your net pay looks the way it does, here's what's really happening to your paycheck in each country.

What comes out of your pay — by country

Every country takes income tax, but the surrounding social-insurance and levy systems are what make the totals diverge.

United States

Federal income tax (progressive brackets) + FICA (Social Security 6.2% up to a wage cap, Medicare 1.45%) + state income tax (zero in some states, ~5–13% in others). The state piece is the wildcard: the same salary nets noticeably more in Texas or Florida (no state tax) than in California or New York.

United Kingdom

Income tax (20% / 40% / 45% bands above a tax-free personal allowance) + National Insurance. The tax-free personal allowance means lower earners keep relatively more, while the 40% higher-rate band starts earlier than many expect, so middle-to-high earners feel it.

Canada

Federal income tax + provincial income tax (varies by province) + CPP (Canada Pension Plan) and EI (Employment Insurance), both capped. Like the US states, the provincial layer means the same salary nets differently in Alberta vs. Quebec.

Australia

Income tax (progressive, with a tax-free threshold) + the 2% Medicare levy (plus a surcharge for higher earners without private health cover). Compulsory superannuation is paid on top of your salary by your employer, so it doesn't reduce your take-home the way a deduction would.

Why the same salary nets so differently

• Sub-national taxes. US states and Canadian provinces add a layer the UK and Australia (mostly) don't — so location within a country matters as much as the country.
• Where the brackets bite. The UK's 40% band and Australia's higher brackets start at income levels that catch middle earners; the US's higher federal brackets start later.
• Social insurance caps. FICA, NI, and CPP/EI are capped, so they take a bigger percentage from lower and middle earners than from high earners.
• Allowances and thresholds. Tax-free allowances (UK, AU) and the standard deduction (US) shelter the first slice of income, helping lower earners proportionally more.

Roughly how it shakes out

As a very rough, illustrative guide, effective deduction rates (income tax + social insurance, single filer, no extras) on a solid middle-class salary tend to land in these ballparks — but the spread within each country (by state/province and exact income) is wide, so treat these as orientation only:

• US: often ~20–30% all-in, heavily dependent on the state.
• UK: often ~25–33% once into the higher-rate band.
• Canada: often ~25–32%, depending on province.
• Australia: often ~25–32% including the Medicare levy.

These overlap more than people expect — the headline "high-tax vs low-tax country" framing oversimplifies. The honest answer for your number is to run it, because your exact figure depends on your income level, filing status, and location. Use the calculators below for precise, current figures rather than relying on ranges.

Comparing offers across borders — what else to weigh

Take-home pay is only part of an international comparison. Also factor in:

• What the deductions buy. Higher deductions in some countries fund universal healthcare; in the US, health insurance is often a separate payroll cost that doesn't show up in "tax" but very much affects your wallet.
• Cost of living. A higher net salary in an expensive city can leave you worse off than a lower one in a cheaper place.
• Employer pension/super. Australia's super and employer retirement matches elsewhere are real compensation that sits outside take-home.
• Currency and exchange rates if you're moving money home.

To turn a gross figure into your real net pay for your country and pay cycle, use the paycheck calculator, and for the tax breakdown see the income tax calculator. To understand why your bracket isn't your real rate, read marginal vs effective tax rate.