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How much of your salary do you keep? 7 countries compared

Salaries and currencies differ too much between countries to compare in dollars, but the share you keep can be compared directly. This post takes a mid-range full-time salary in each of Australia, Canada, India, New Zealand, Singapore, the United Kingdom and the United States, the one our calculator starts with, and works out how much goes to income tax, how much to payroll contributions, and how much you keep. Every figure comes from the same engines as our calculators, using each country's current tax year.

The comparison

At these salaries, the lowest overall deduction rate is in India (7.9%) and the highest in New Zealand (24.9%). The highest marginal rate, the share of the next unit of pay that goes, is in the United States at 39.0%.

Single employee, salary only, lowest total deductions first
CountrySalaryIncome taxContributionsYou keepMarginal rate
India₹15,00,000 INR6.5%1.4%92.1%15.6%
United Kingdom
England, Wales & Northern Ireland
£45,000 GBP14.4%5.8%79.8%28.0%
Australia$90,000 AUD21.5%0.0%78.5%32.0%
Singapore$72,000 SGD2.4%20.0%77.6%25.6%
United States
California
$75,000 USD13.9%8.9%77.1%39.0%
Canada
Ontario
$75,000 CAD16.9%7.2%75.9%32.5%
New Zealand$75,000 NZD19.6%5.2%75.1%35.3%

Each salary is in local currency and is not converted. Percentages are shares of the gross salary. Canada uses Ontario, the UK uses England, Wales and Northern Ireland, and the US uses California for a single filer.

Not all deductions are the same

The "Contributions" column mixes very different things. Singapore's CPF, New Zealand's KiwiSaver and India's EPF go into accounts in your own name that you get back later. Canada's CPP and EI, the UK's National Insurance and US Social Security and Medicare fund state pensions and benefits that you earn entitlements to. Australia's superannuation is paid by the employer on top of salary, so it doesn't appear here at all.

So a country with high contributions isn't necessarily "more expensive": some of that money is still yours.

Marginal rates matter for raises

The average rate tells you what you keep today. The marginal rate tells you what you would keep from a raise. They can differ a lot: in the United States, you keep 77.1% of this salary overall but only 61.0% of the next unit of pay.

Pick a country from the menu at the top of any page to try your own salary.

Sources

Each country's full list of sources is on its calculator page.

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