This is based on averages for England. Income tax is 13% but once you factor in everything else it is more like 30%

    by RexFuzzle

    10 Comments

    1. You could always come to the states, where you’d still pay ~30% but at least you wouldn’t have health care.

    2. Earnings and Income Data

      * Median Annual Earnings: The figure of ~£39,000 (used as the basis for the £36k example) comes from the ONS Annual Survey of Hours and Earnings (ASHE).
      * [ONS: Employee earnings in the UK: 2025](https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours/bulletins/annualsurveyofhoursandearnings/2025)
      * Living Standards & Real Income: Data on how disposable income is tracking for the 2025/26 year.
      * [Resolution Foundation: The Living Standards Outlook 2025](https://www.resolutionfoundation.org/app/uploads/2025/06/LivingStandardsOutlook2025.pdf)

    3. Indirect Tax Data (VAT, Council Tax, Duties)

      * Council Tax Levels: Average Band D Council Tax for England in 2025/26 is officially set at £2,280.
      * [GOV.UK Statistics: Council Tax levels set by local authorities in England 2025 to 2026](https://www.gov.uk/government/statistics/council-tax-levels-set-by-local-authorities-in-england-2025-to-2026/council-tax-levels-set-by-local-authorities-in-england-2025-to-2026)
      * The Effects of Taxes on Household Income: This ONS bulletin provides the “Post-tax income” and “Final income” data used to estimate the impact of VAT and duties (indirect taxes) across different income groups.
      * [ONS: Effects of taxes and benefits on UK household income: 2024/25](https://www.ons.gov.uk/peoplepopulationandcommunity/personalandhouseholdfinances/incomeandwealth/bulletins/theeffectsoftaxesandbenefitsonhouseholdincome/2024)
      * Fuel and Alcohol Duties: Updated rates for 2026, including the fuel duty freeze and inflation-linked alcohol duty.
      * [House of Commons Library: Tax Statistics Overview (January 2026)](https://commonslibrary.parliament.uk/research-briefings/cbp-8513/)

    4. I pay more than you do in taxes just in health insurance in the U.S. and I am a healthy adult

    5. VAT seems to be really low considering that almost everything you spend money on will have 20% VAT in it.

      Also, employers NI would be nice to include (another £4650).

    6. tungsten_panda on

      Whoa, 13% for PAYE? In south africa, the minimum PAYE contribution is 18%. At your income level, it would be 39% if I’m not mistaken. There’s still UIF to consider, no Healthcare or health tax, but there’s certainly VAT… At 15%

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