US Citizens Working in United Kingdom
See what you actually take home after US and United Kingdom taxes: whether you're already working abroad or planning a move.
Here's what matters most for US citizens working in United Kingdom:
- •US citizens are taxed on worldwide income, but FEIE can exclude up to $132,900 in 2026
- •UK tax residents are taxed on their worldwide income at progressive rates
- •You may owe taxes to both countries, but tax treaties help prevent double taxation
- •UK National Insurance contributions apply in addition to income tax
Calculate your take-home pay
See your real take-home pay with currency conversion and cost of living adjustments.
Who taxes you?
As a US citizen working in the UK, you're subject to taxation by both countries. The US taxes citizens on worldwide income, but the Foreign Earned Income Exclusion (FEIE) can exclude up to $132,900 of foreign earned income in 2026. The UK taxes its tax residents on their worldwide income, at progressive rates. If you move to the UK after at least 10 years of living outside it, you can claim relief from UK tax on eligible foreign income and gains, such as interest and dividends from abroad, for your first 4 years as a resident. This 4-year regime replaced the remittance basis for non-domiciled residents on 6 April 2025. It does not cover your pay, and in any year you claim it you lose your tax-free allowances for Income Tax and Capital Gains Tax. Tax treaties between the US and UK help prevent double taxation through foreign tax credits.
Common pitfalls
- Not meeting the 330-day physical presence test can disqualify you from FEIE
- UK National Insurance contributions are separate from income tax and can add significant costs
- State tax obligations may persist if you maintain state residency
- Self-employment tax (FICA) may still apply depending on your employment structure
- Currency fluctuations can significantly impact your effective take-home pay
Is there a US-United Kingdom tax treaty?
Yes. The US-UK income tax treaty is in force, and foreign tax credits cover what it does not.
Getting paid in British Pound
Salaries in London are paid in British Pound (GBP). A 100,000 US-dollar salary is roughly 79,000 GBP at current rates. That matters twice over: your US return is always filed in dollars, so the rate on each payday feeds straight into what you report, and a currency that moves against the dollar changes what the same nominal salary is worth to you without your pay changing at all.
Frequently asked questions
Not on the same income: a treaty is in force. You pay the higher of the two rates, not both.
The British Pound (GBP). A 100,000 US-dollar salary is about 79,000 GBP at current rates. Your US tax is always calculated in dollars, so the exchange rate on the day you are paid feeds directly into what you report, and into how far the same nominal salary goes in London.
Yes. US citizens must file US tax returns regardless of where they live. However, you may not owe US taxes if your income is below the FEIE threshold and you meet the physical presence test.
The UK taxes its tax residents on their worldwide income, at progressive rates. If you arrive after at least 10 years of living outside the UK, you can claim relief on eligible foreign income and gains, such as interest and dividends from abroad, for your first 4 years, but not on your pay. You'll pay UK income tax and National Insurance contributions. You can claim foreign tax credits on your US return to offset taxes paid to the UK.
Self-employed US expats may still owe self-employment tax (FICA) to the US, in addition to UK taxes. The rules are complex and vary based on your specific situation.
Official resources
Primary sources:
Calculate your take-home pay
See your real take-home pay with currency conversion and cost of living adjustments.
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US Take-Home Pay Calculator →