United States vs United Kingdom: tax rates
On headline statutory rates, United States is the lighter-tax country of the two. United States's top personal income tax is 37% versus 45% in United Kingdom; corporate tax is 21% versus 25%; and standard VAT/GST is No national VAT; state sales taxes 0–~10% versus 20%. These are top statutory rates, not the effective tax you'd actually pay — residency, brackets, deductions and social security all change the real number. This is not tax advice.
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
United States vs United Kingdom side by side
| Tax | United States | United Kingdom |
|---|---|---|
| Top personal income tax | 37% | 45% |
| Corporate income tax | 21% | 25% |
| Standard VAT/GST | No national VAT; state sales taxes 0–~10% | 20% |
| Capital gains (individuals) | 20% (long-term; plus 3.8% NIIT) | 18% basic / 24% higher rate |
| Employee social security | Employee ~7.65% (Social Security + Medicare) | Employee National Insurance up to 8% |
| Region | North America | Europe |
Source: PwC Worldwide Tax Summaries, cross-checked with OECD and Tax Foundation data. Statutory headline rates, not effective rates.
Verdict
Judged purely on headline rates, United States taxes less than United Kingdom across income, corporate and consumption combined. But that is a blunt comparison: it ignores the income bands those top rates apply to, the deductions and credits each system offers, social-security contributions, and — crucially — your own residency and where your income arises. Read each country's full page (United States and United Kingdom) and run the numbers in the calculator before drawing conclusions.
Frequently asked questions
Is United States or United Kingdom a lower-tax country?
On headline statutory rates, United States has the lighter overall tax load of the two. Its top personal income tax is 37%, corporate tax 21% and VAT/GST No national VAT; state sales taxes 0–~10%, versus 45% / 25% / 20% for United Kingdom. This compares top statutory rates only, not effective tax or your personal situation.
Which has lower income tax, United States or United Kingdom?
United States has the lower top personal income tax rate: 37% versus 45%. Remember these are top marginal rates — the rate an average earner pays is lower, and brackets, allowances and social security differ between the two.
Does United States or United Kingdom tax capital gains more?
United States treats individual capital gains as: 20% (long-term; plus 3.8% NIIT). United Kingdom treats them as: 18% basic / 24% higher rate. Holding periods, asset type and residency change the outcome in both — check each country's full page and confirm with a tax adviser.
Should I move from United States to United Kingdom for tax reasons?
Headline rates are only a starting point. Real liability turns on tax residency, where income arises, exit taxes, treaties and (for US citizens) worldwide taxation. This comparison is general information, not tax advice — speak to a cross-border tax professional before relocating.
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Last updated: 2026-06-20