UK vs Canada: take-home pay comparison
UK income tax + NI vs Canadian federal + provincial + CPP/EI — top destination for UK leavers post-Brexit.
Canada has been the single largest non-EU UK emigration destination since 2020, with London → Toronto / Vancouver dominating the corridor. UK applies the standard 3-band schedule (20% / 40% / 45%) plus National Insurance (8% / 2% above the UEL). Canada layers federal income tax (15% / 20.5% / 26% / 29% / 33%) on top of an Ontario-default provincial schedule (5.05% / 9.15% / 11.16% / 12.16% / 13.16%) plus CPP (5.95% capped at CAD 71,300) and EI (1.66% capped at CAD 65,700).
The cumulative marginal rate in Toronto at CAD 250,000 is about 53.5%, very close to the UK 47% (IT + NI 2%) at the same converted gross. At middle incomes (CAD 70-90k) Canada runs about 5-7 percentage points heavier than the UK equivalent because there's no Personal Allowance cliff equivalent — every dollar above the basic credit is taxed. Healthcare is publicly funded in both. The Canadian TFSA + RRSP gives broadly similar tax-advantaged savings room to the UK ISA + pension stack.
Side-by-side at common gross levels
CAD/GBP shown at indicative parity — interpret native net values, not the FX-adjusted delta.
| Gross (annual) | United Kingdomnative: £ | Canadanative: C$ | Net delta (right − left) |
|---|---|---|---|
| £40,000 / CA$40,000 | £32,320 (19.2%) | CA$32,782 (18.0%) | CA$463 |
| £80,000 / CA$80,000 | £56,957 (28.8%) | CA$62,481 (21.9%) | CA$5,523 |
| £120,000 / CA$120,000 | £75,914 (36.7%) | CA$90,621 (24.5%) | CA$14,706 |
| £200,000 / CA$200,000 | £117,158 (41.4%) | CA$141,498 (29.3%) | CA$24,340 |
Frequently asked questions
- How much more take-home does £80,000 yield in Canada vs United Kingdom?
- At £80,000 gross on each side using 2025/26 rates: United Kingdom retains £56,957 (28.8% effective), Canada retains CA$62,481 (21.9% effective). Native-currency comparison — no FX conversion applied.
- What is the marginal-rate difference between United Kingdom and Canada at £80,000?
- At £80,000 gross, the next 100 of gross retains £58 in United Kingdom (marginal rate 42.0%) and CA$70 in Canada (marginal rate 29.7%). This matters for bonus, overtime, or salary-sacrifice decisions — the marginal rate applies to the next unit earned, not the average.
- At what salary level is the take-home gap biggest between United Kingdom and Canada?
- Across the 40k–250k single-filer sweep, the largest net delta is at £250,000 gross: Canada net is higher by CA$27,138 per year. Above and below this point the gap is smaller, driven by the interaction of each side's band thresholds + social-contribution caps.
- What does this United Kingdom vs Canada comparison include?
- Both sides use each tax authority's published 2025/26 rates: income tax, social-insurance contributions, and any statutory levies routed through payroll. The numbers are the same ones the full /uk and /ca calculators produce — open either page for the full per-line breakdown.
- What does this comparison NOT model?
- Currency conversion is NOT applied — the table shows each side in its native currency. Use a live FX rate to convert if you need a single-currency view. Pension contributions, salary-sacrifice schemes, benefits-in-kind, region-specific surcharges (Scotland for UK, Comunidad Autónoma for ES, Bundesland for DE), and cost-of-living differences are not modeled here. The comparison is a tax-stack-only view.