Skip to content
MovingCal

Salary After Tax · Updated June 2026

US Citizen in United Kingdom: Tax Calculator

US citizens in United Kingdom file two returns for life: United Kingdom taxes as the residence country first, then the US return reconciles via the $132,900 FEIE or the Foreign Tax Credit. UK rates (20–45% plus NI) generally exceed US rates, so the FTC zeroes US income tax for most.

The real costs are structural: PFIC rules effectively bar US citizens from local index funds and most UK ISAs lose their tax-free status to the IRS. Compliance, not double taxation, is the expat tax burden.

Salary after tax calculator · 2026

Take-home pay

–

–

Per month
–
Per biweekly check
–
Per week
–
Per hour worked
–
Gross salary
–
Total tax
–
Effective rate
–
Marginal rate
–

Where every dollar goes

    2026 rules: federal brackets, $16,100/$32,200 standard deductions, $184,500 SS wage base. Hourly figures assume 40 h/week × 52. Non-US figures are planning estimates incl. employee social charges.

    Key insights

    Key insights

    • FEIE $132,900 or FTC – model both, annually.
    • UK rates > US rates: FTC usually zeroes the US bill.
    • PFIC rules: avoid foreign-domiciled funds entirely.
    • FBAR $10k aggregate trigger; Form 8938 stacks on top.
    • Totalization prevents double social security.

    The United Kingdom–US mechanics

    Treaty + FTC flow: UK PAYE withholds at source; US Form 1116 credits UK tax against US liability – typically driving it to zero with carryforwards to spare. Watch the mismatched tax years (UK: April–April) and the remittance-basis interactions for new arrivals.

    Universal landmines: PFIC treatment of foreign funds (punitive – hold US-domiciled ETFs instead), FBAR at $10k aggregate, Form 8938 thresholds, and totalization certificates to avoid double social security.

    FAQ

    Frequently asked questions

    Do US citizens in United Kingdom pay tax twice?

    Rarely on the same income: United Kingdom taxes first, the US credits or excludes. The double burden is compliance – two filings, PFIC restrictions, and information returns with painful penalties.

    FEIE or FTC for United Kingdom?

    FTC for most: UK tax exceeds US tax, credits zero the bill and carry forward. FEIE suits lower earners wanting simplicity.

    Can I invest in local funds?

    Avoid foreign-domiciled funds – PFIC taxation is punitive. US-domiciled ETFs via a US brokerage remain the standard expat portfolio answer (where the broker allows a foreign address).

    What about social security contributions?

    The US–United Kingdom totalization agreement assigns you to one system (usually the residence country after ~5 years) – get the certificate of coverage to stop double payroll taxation.

    What if I haven't filed for years?

    The Streamlined Foreign Offshore Procedures: 3 years of returns + 6 of FBARs, penalty-free for non-willful cases – typically with little or no tax due thanks to FEIE/FTC.

    More on United Kingdom

    Keep exploring

    Cost of Living

    Relocation Budget

    Rent vs Buy

    Country Comparison

    Plan the whole move, not just one number.

    Every MovingCal tool shares the same 2026 dataset – carry your cities, salary, and countries from one calculator to the next.

    Cost of Living Relocation Budget Rent vs Buy Country Comparison