Living in UK vs US: A Tight Race

Cost of Living in the US vs UK

If we talk about in general, we can say that the cost of living in the US is slightly lower than in the UK. However, the city you live in changes the result. For instance, let’s take New York and San Francisco. These cities are known for their high cost of living. On the other hand, we can’t assume the same for smaller cities such as Tulsa, Oklahoma, or Indianapolis, Indiana since they offer a more affordable alternative.

In both the US and UK, housing is one of the biggest expenses when it comes to budget planning. In the US, the average cost of a one-bedroom apartment in a city center is around $1,100-3900 per month. In the UK, it’s between £550-2000 (around $650-2500). The monthly budget generally includes the utilities, which are in general more expensive in the UK compared to the US.

Food and dining out are crucial when budgeting. Dining out in the US is generally more affordable compared to the UK, while grocery prices can be higher. Transportation expenses are comparable in both countries. However, car ownership is more widespread in the US due to limited public transportation.

In the end, how much it costs to live will differ based on your lifestyle choices. Whether you prefer living in the US or in the UK, you’ll find plenty of opportunities. You may end up in one of the best countries to live in.

Here’s a table showing estimated costs of living in the UK and the US, based on Numbeo’s cost of living data as of April 2024:

Quality of Life in the UK vs USA

The variation between the healthcare systems in the UK and the USA change in terms of life standards. The National Health Service (NHS) in the UK offers free healthare to all residents in the country. Meanwhile, in the United States, most people have private health insurance. When it comes to education, it is free in the UK while there are both private and public education options with tuition fees the he US.

The cost of housing in the UK is generally high, whereas in the USA, it can vary depending on the location. When it comes to crime rates, the UK has a comparatively lower rate than the USA, which can differ significantly based on location. The UK generally offers a more favorable work-life balance compared to the USA, as work hours tend to be shorter and vacation time more generous.

The UK is more ethically diverse, whereas the USA is more racially diverse. Both countries provide various cultural and outdoor activities.

Let’s see the different contributors to the high quality of life in the UK and the US in the chart below:

Housing

The cost of housing in the UK, especially in big cities like London, it is higher. It’s an important factor to consider as it’s one of the most important expenses when you’re living in another country as a digital nomad or expat. In the UK, housing options range from quaint cottages to modern flats and everything in between. In addition, homes in the UK are smaller in size compared to the US.

It’s no surprise that In the United States, the cost of housing can vary depending on the location. What’s more, It’s very common for urban areas to come with a higher price tag. On the other hand, suburbs and rural areas are more budget-friendly. In contrast to the UK, American homes have more space, which creates a big difference for some people, especially for big families who need a bigger space with more rooms included.

Education

Let’s talk about the education systems in the UK and the US, which aren’t the same at all. The four-stage education system in the UK follows a national curriculum focusing on core subjects. Furthermore, students typically take national exams around the ages of 16 and 18.

The US has three stages of education, and each state has its own curriculum. Practical skills and critical thinking have a higher importance in the US. There’s a range of standardized tests, though there’s less emphasis on high-stakes exams.

Higher education students in the UK usually study a single subject at the university. Meanwhile, the US places a stronger emphasis on liberal arts education.

Transportation

As we mentioned before, public transportation in the UK is more widely used than in the US, like in many European countries. The UK has well-connected cities with trains, buses, and the London Underground. However, it can be limited to the suburbs.

In the US, car ownership is prevalent, even in urban areas, and public transportation options are often less developed. These don’t make one or another advantageous, so both countries face transportation challenges, such as road congestion in the UK and long travel distances in the US. 

Healthcare

The UK and the USA have different healthcare systems. The UK has a publicly funded NHS, which is free for residents. This brings the UK the advantage when we’re talking about healthcare. The US has a predominantly private healthcare system, and healthcare is paid for by insurance. Seemingly, the healthcare system in the US is not budget-friendly. When in the UK, the NHS provides free healthcare to all but can have long waiting times and limited resources. Returning back to the US part of the healthcare system, we can add that quality can be high; however, it can be costly.

Wages & Earnings

In this comparison, we underlined the work and work-life balance and fewer working hours in the UK’s working system. However, we also said that the salaries are according to the working hours, so for some, it may not be an advantageous situation. In this case, the US offers a more beneficial outcome with higher salaries than the UK. It’s not the same in every industry and job type, though. In the UK, the average salary is around £29,600 per year. The average salary in the US is around $56,000 per year.  The US is also known for the tipping culture, boosting earnings for service workers. With higher salaries, the cost of living in major cities in the US is also higher.

Entertainment

When in the UK, some of the popular cultural attractions welcome you, like Big Ben, the Tower of London and Buckingham Palace. But the culture scene doesn’t end up there. You have plenty options of for world-class museums, galleries, and famous theaters. Don’t forget about the music events and popular music festivals like Glastonbury. 

The entertainment industry in the US is influential in many countries. Hollywood movies and Broadway hit musicals are among them. There are also significant sports events like the Super Bowl and the World Series. 

Culture and Lifestyle

The British culture ahs a long and rich history, with its strong sense of tradition and the pride in their history. How do Americans see the British? They consider the people of the UK as reserved and polite. On their side, Americans seem to tend to be more outgoing. If you’re into British comedy, you might have experienced the dry sense of humor and sarcasm, which you can also discover in daily conversations. British life’s focus is more on socializing, while in the US, the prioritization of work and family is more seen.

The British love football, while Americans focus on American football, basketball, and baseball. UK restaurants offer traditional pub fare, while US restaurants offer a wide range of cuisines.

The British love their football. Americans, on the other hand, are more interested in American football, basketball, or baseball. Pub fare is more seen in UK restaurants. In the US, there is a wide range of cuisines.

Working in the USA vs the UK

As both countries have different regulations and laws, the work culture and employment laws are not the same as well. In the USA, the work culture is fast-paced and focused on productivity. In contrast, the UK has a more laid-back work culture.

Salaries are generally higher in the USA, but healthcare benefits and vacation time are limited. In the UK, salaries may be lower, but employees have access to convenient healthcare and more vacation time.

Taxes in the UK vs the USA

According to govisafree.com, taxes in the UK are generally higher than in the USA. The basic rate of income tax is currently 20%, but can go up to 45% for higher earners. National Insurance contributions are also required for employees and employers. Other taxes in the UK include council tax, value-added tax (VAT), and capital gains tax.

In the USA, federal income tax rates range from 10% to 37%, depending on income level and marital status. State taxes also apply, with rates varying by state. Social Security and Medicare taxes are deducted from employee paychecks.

It is important to note that there are tax treaties between the UK and the USA. The aim is to prevent double taxation. Additionally, tax laws and regulations in both countries are subject to change. So it’s better to make sure to check up-to-date information.

Expat Life in the US vs the UK

If you are considering moving to either the US or the UK, your personal circumstances matter.

The UK is known for its rich history, cultural diversity, and high-quality healthcare system. However, housing tends to be smaller and more expensive. Education places a greater emphasis on standardized testing. The UK has a publicly funded healthcare system and a more extensive public transportation system.

On the other hand, the US offers vast opportunities for career growth and a diverse range of entertainment options. Housing tends to be larger and more affordable. Education has a more flexible approach. The US promotes the use of a private healthcare system and relies more heavily on cars for transportation.

Wages and earnings in the US are generally higher, but the cost of living is also higher. The UK has a more traditional cultural and artistic landscape, while the US offers modern entertainment options. Working conditions can vary, with the UK offering more vacation time and a balanced work-life balance, while the US has a more competitive job market and longer working hours.

Taxes differ between the two countries, with the UK having a higher tax rate but also offering a wider range of social welfare programs. The US has a lower tax rate, but healthcare costs and other expenses may offset those savings.