Comparing take-home pay across countries is genuinely tricky, since each system taxes differently and reports figures differently — but running the same gross salary through each country's rules highlights how differently "the same" income actually lands.
The US: federal, state, and FICA all separately
Federal income tax uses progressive brackets, but that's only part of the picture — FICA (Social Security and Medicare) adds another 7.65% for most employees, and state income tax (where applicable — eight states charge none at all) stacks on top. Total effective tax burden varies enormously by state even at identical federal income.
The UK: Income Tax plus National Insurance
UK take-home combines Income Tax (20% basic, 40% higher, 45% additional) with National Insurance (8% then 2%) — two separate deductions calculated on similar but not identical thresholds. Unlike the US, there's no separate regional income tax layer for most of the UK (Scotland is the exception, with its own bands).
Canada: federal plus provincial, with real regional variation
Federal brackets apply nationwide, but provincial tax varies significantly — Alberta's flat 10% provincial rate versus Ontario or Quebec's progressive brackets can meaningfully change total tax burden at the same federal-taxable income, similar in spirit to US state tax variation.
Australia: income tax plus the Medicare levy
Australia adds a 2% Medicare levy on top of progressive income tax brackets, with a phase-in for lower incomes. Unlike US FICA or UK National Insurance, Australia's system doesn't fold a separate large payroll tax into the employee's own deduction the same way — though the Superannuation Guarantee (paid by the employer, not deducted from salary) plays a related role in the broader compensation picture.
Why identical gross salaries produce different real outcomes
A $100,000 (or equivalent) salary lands very differently after each country's combination of income tax, payroll-style taxes, and regional variation — comparing job offers across countries purely on gross salary, without running the actual take-home numbers, routinely misleads people evaluating international opportunities.
Compare your specific numbers directly: US Income Tax, UK Take-Home Pay, Canada Income Tax, or Australia Income Tax.