Cost of Living in UK vs USA
Are you thinking about moving across the pond and are wondering about the differences in the cost of living in UK vs USA?
If so, understanding the difference in the cost of living between these two countries is crucial to a successful relocation.
In recent years, both the UK and the United States have faced rising inflation and increasing household expenses, making it more important than ever to know exactly what your money will buy across the Atlantic.
The cost of everyday life varies significantly between the UK and the USA, from housing and healthcare to transportation, groceries, and even entertainment.
Some items, such as fuel or property taxes, can be noticeably higher in the US, while other expenses, such as food or consumer goods, may come in cheaper depending on the state you settle in.
This guide examines the actual costs you need to budget for if you are considering emigrating to the USA.
We will break down the key areas of spending, highlight where you could save or pay more, and help you evaluate whether your American dream fits your financial reality.
Whether you are moving for work, retirement, or simply for a change of scenery, understanding these costs will help you plan smarter and avoid surprises.
Let us explore the true cost of living in the USA versus the UK.
Potential Earning Comparison
Your salary expectations may be different in the USA compared to the UK.
Your potential salary is one of the biggest financial considerations when moving from the UK to the USA.
Understanding the American job market and how much you can expect to earn in your field, is going to be essential for planning your new life in the USA.
Generally speaking, average salaries in the USA tend to be higher than those in the UK, but this varies considerably by profession, location, and demand for your skills.
As of March 2025, here’s how average salaries compare in some common professions (source’s: U.S. Bureau of Labor Statistics and Indeed UK).
Exchange rates fluctuate constantly, as such these figures are a guide only.
- Accountant: USA $79,500 (£62,150) – UK £35,500
- Carpenter: USA $45,200 (£35,400) – UK £32,000
- Social Worker: USA $60,150 (£47,000) – UK £33,000
- Secondary School Teacher: USA $59,200 (£46,250) – UK £40,500
- Software Developer (formerly Computer Programmer): USA $109,020 (£85,200) – UK £43,000
While these figures highlight the potential for higher earnings in the USA, it is important to balance this against the cost of living, which can be significantly higher in certain US cities.
Researching state-specific job markets is also vital, as wages in California, New York, and Texas can differ drastically from those in less expensive states like Tennessee or Ohio.
If you’re exploring career opportunities, tools like Glassdoor and Indeed allow you to compare salaries for your specific role and location, giving you a clearer picture of what to expect.
Combining this research with cost-of-living calculators can help you plan your finances more accurately, ensuring your American Dream is financially feasible.
Understanding Tax in the USA vs UK
You will need a good understanding of how taxes work in the US.
Taxes are one of the most significant financial differences expats encounter when moving from the UK to the USA.
While both countries use a system of income-based tax brackets, the American tax system is significantly more complex. Federal, state, and even local taxes all affect how much you pay.
In contrast, the UK’s system is centralised, with just four income tax bands: personal allowance, basic rate, higher rate, and additional rate.
Currently US federal income tax rates range from 10% to 37%, depending on income.
In addition, state income tax can range from 0% to over 13%, depending on where you live. Florida and Texas, for example, have no state income tax, while California has one of the highest rates, at up to 13.3% (IRS.gov).
In comparison, the UK’s basic income tax rate stands at 20%, rising to 40% for higher earners, with an additional rate of 45% for top incomes (Gov.uk).
However, lower income tax in the USA does not always mean a smaller tax burden overall.
Americans face additional costs like mandatory health insurance and property taxes, which can be far higher than UK council tax.
Understanding these differences and factoring them into your budget is a consideration you cannot afford to ignore.
For a full breakdown of US taxes, visit the IRS official website.
You can also compare tax-friendly states using tools like Tax Foundation, which tracks the latest tax rates across America.
Housing Market Comparisons
Get a good understanding of the housing market.
When comparing the housing market in the USA and the UK, there are some striking differences—not just in price but also in size, space, and value for money.
Understanding these variations will help expats planning to buy a home in America manage expectations and budget effectively.
The average UK house price stands at approximately £268,087, according to the latest data from the UK Land Registry.
Meanwhile, in the USA, the median home price is around $396,900 (£307,240), based on the latest National Association of Realtors report (NAR).
While slightly more expensive overall, American homes tend to be significantly larger, often offering more bedrooms, bigger plots, and additional living space compared to their UK counterparts.
Location matters too — homes in major US cities like New York, San Francisco, and Boston come with premium price tags, while properties in Texas, Florida, or Ohio offer far better affordability.
In contrast, the UK housing market remains squeezed, especially for first-time buyers, due to higher mortgage rates and stricter lending criteria.
If you’re planning your move, it’s worth browsing property portals like Zillow for US listings and Rightmove for UK homes to get a realistic feel for what your budget will buy on both sides of the Atlantic.
Rental Market Comparisons
Renting is very popular in the US.
As most expat new arrivals rent for a time, it is a good idea to familiarise yourself with the costs involved here, too.
Both countries have experienced rising demand for rental properties in recent years, driven by high property prices and increased mortgage rates. Whether you plan to settle in a buzzing city, or a quieter suburb will heavily influence how much you pay each month.
According to Numbeo, tenants pay 32% more for a rental property in the States than in the UK—quite a big difference.
The average cost to rent a three-bedroom family home in the USA in the suburbs rather than the city centre is around $2,392 (£1,851) per month.
In the UK, a similar property rents for roughly £1,359 per calendar month (PCM), making the UK cheaper for family renters overall.
However, in highly sought-after areas like London, New York, or San Francisco, prices can soar well beyond these averages.
It is also important to factor in tenant rights and lease terms differences.
In the UK, tenancy agreements tend to offer greater protection for renters, while in the USA, tenant laws vary dramatically by state, meaning your rights as a tenant in Florida could look quite different from those in California.
For up-to-date listings, it’s worth browsing rental platforms like Rightmove for UK properties and Zillow or Apartments.com for US rentals.
These tools allow you to compare prices across multiple locations, helping you budget effectively for your move.
Utility Bills
No matter where you live, utilities covering electricity, gas, water, and waste collections are unavoidable household expenses.
However, if you are moving from the UK to the USA, you will notice some clear differences in average utility costs.
In general, utility bills in the USA are cheaper than in the UK, thanks mainly to domestic energy production and lower reliance on imported gas.
As of March 2025, the average monthly utility bill for a standard family home in the UK (electricity, gas, and water) is approximately £260 (Ofgem).
In comparison, a similar household in the USA pays around $190 (£147) per month for the same services (U.S. Energy Information Administration).
This £100+ saving can make a meaningful difference to your budget.
It is also worth noting that regional variations play a big role. Heating costs are higher in northern US states, while air conditioning bills spike in hot southern areas like Texas or Florida.
Whether you are moving to Manchester or Miami, understanding utility bills helps avoid unwelcome surprises.
Public Transport & Fuel Comparisons
The cost of public transport and travel in general is very different in the two countries.
Travel costs are an inevitable part of life, whether you are commuting to work, running errands, or exploring your new surroundings.
Again, public transport and fuel prices vary significantly between the two countries.
In the UK, public transport is widely used, especially in cities like London, where the average monthly Travelcard for zones 1-4 costs approximately £200 according to Transport for London (TFL).
By contrast, in the USA, public transport is far less comprehensive, especially outside major cities.
In New York, a monthly MetroCard costs around $127 (£99) (MTA), while a similar bus pass in Los Angeles is around $85 (£66).
Fuel prices are where the USA has a clear advantage.
Currently, fuel in the USA averages $0.93 per litre (72p), compared to £1.89 per litre in the UK (GlobalPetrolPrices.com).
This makes driving a much more affordable option in the USA, which is fortunate. Car ownership is essential in many American suburbs and rural areas where public transport is limited.
In car-dependent areas, you will save on fuel but remember to budget for vehicle insurance, maintenance, and parking, which can vary widely by state.
In short, though costs may differ in both countries with prices increasing closer to main cities, there is no massive difference if you travel via public transport.
Grocery Prices– What’s Cheaper and What Costs More?
You may be surprised at the differences in food shopping costs.
When comparing the cost of groceries in the USA versus the UK, the differences are not always clear-cut.
Prices vary depending on location, supply chains, and even seasonal availability.
In both countries, shopping in major cities tends to cost more than in rural areas, and imported goods naturally come with a higher price tag.
Here’s a quick grocery basket comparison using data from Numbeo:
- 1 litre of milk: USA $0.91 (72p) – UK £1.09
- 500g loaf of white bread: USA $3.85 (£3.03) – UK £1.35
- Dozen eggs: USA $4.15 (£3.27) – UK £3.05
- 1kg potatoes: USA $3.20 (£2.52) – UK £1.20
- Mid-range bottle of wine: USA $14.50 (£11.40) – UK £7.90
- Pack of 20 cigarettes: USA $9.30 (£7.30) – UK £13.50
- Internet (60 Mbps+, unlimited): USA $73 (£57.50) – UK £33.00
Overall, basic food staples like bread and potatoes are cheaper in the UK, while items such as wine, eggs, and internet services are often more affordable stateside.
One of the biggest factors in the USA is state-by-state variation — groceries in California tend to cost far more than in Texas or Ohio.
To get real-time prices, expats can browse the websites of two of the most popular grocery chains in the USA:
- Walmart – known for its low prices and extensive product range.
- Kroger – a major supermarket chain with strong regional coverage.
Checking these sites directly gives future expats an accurate snapshot of the prices they will face in their chosen area.
Healthcare Costs: How Medical Bills Compare in the USA and UK
We all know about the major differences when it comes to healthcare.
One of the biggest financial shocks for expats moving to the USA from the UK is the stark difference in healthcare provision.
In the UK, the NHS (National Health Service) provides free healthcare at the point of use, funded through general taxation.
Regardless of income, every resident has access to essential healthcare services, including GP visits, hospital care, and emergency treatment.
While some people choose to take out private health insurance for faster access to specialists, this is entirely optional.
In the USA, healthcare is predominantly privatised, and costs differ dramatically depending on insurance coverage, employer benefits, and even the state you live in.
As of March 2025, the average cost of basic health insurance for a single adult without employer coverage is approximately $635 per month £491 – (Forbes)
Premium plans with broader coverage or lower deductibles can cost significantly more.
Low-income individuals may qualify for subsidies through the Affordable Care Act (HealthCare.gov), but navigating the system can be confusing.
Without insurance, even a routine doctor’s appointment can cost upwards of $100 (£79), while hospital stays can run into thousands of dollars.
For expats used to free healthcare in the UK, understanding these costs, budgeting, and arranging adequate health insurance cover will be absolutely crucial.
Before you move to the USA, it’s well worth investigating tried-and-tested insurance plans using expat platforms like ExpatFocus for first-hand advice.
Thinking of Making the Move to the USA? Here’s Our Final Advice
Ultimately, there’s no one-size-fits-all answer, which is why careful research is so important.
If you are after higher wages, cheaper fuel, and more living space, the USA can offer better value if you are prepared for the added costs of healthcare and private insurance.
If you value free healthcare, easier access to public transport, and a more predictable cost of living, the UK might still work out cheaper; especially for families who rely heavily on public services.
One of the smartest moves you can make is to get expert help. An experienced migration agent can walk you through the paperwork, guide you on visa options, and make sure you avoid common (and costly) mistakes.
Every move is different, so finding advice tailored to your personal circumstances can make all the difference between a smooth transition and a stressful one.
If you are ready to take the next step, here are a few well-known UK-based immigration specialists you might want to check out:
We hope this guide has given you a clearer picture of what to expect when comparing the cost of living in the USA vs the UK.
With careful research, realistic budgeting, and the right support, you will be in a strong position to decide if the American dream is financially achievable for you.
Want more tips for your big move? Check out our relocation guides for expert advice every step of the way:
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Max is a seasoned writer and blogger in the real estate and home moving sectors, as well as a knowledgeable source of information for expatriates living and working abroad. His detailed insights have helped thousands of people move and live abroad with greater simplicity and ease.
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