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United Kingdom vs Canada: salary, tax & cost of living

Average wage, take-home after tax and cost of living, side by side — on real OECD wage data, PPP-adjusted. The headline salary and the net paycheck don't always point the same way.

Head to head

United Kingdom vs Canada

MetricUnited KingdomCanadaWinner
Average wage (PPP)$63,691$69,417Canada
Payroll deduction26%28%United Kingdom
Net take-home (avg wage)$47,131$49,980Canada
Cost index (NY=100)11372Canada

Average wage: OECD (PPP). Tax is an effective single-filer rate at the average wage; cost index is each country's anchor city (London / Toronto).

Data signals

What actually separates them

  • Who keeps more

    On the average wage, Canada leaves the bigger net paycheck — about $2,849 more per year ($47,131 in United Kingdom vs $49,980 in Canada, PPP).

  • Payroll deduction

    United Kingdom takes less off the top: ~26% vs ~28% combined income tax + social security.

  • Cost of living

    Canada is the cheaper base: cost index 72 vs 113 (London / Toronto, New York = 100). Higher net pay doesn't help if rent eats it.

Banking & transfers for either move

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FAQ

Is the average salary higher in United Kingdom or Canada?
Canada has the higher OECD average wage: $63,691 in United Kingdom vs $69,417 in Canada (PPP-adjusted). But after tax, Canada keeps more net.
Where do you take home more after tax?
Canada — about $2,849 more net per year on the average wage, once income tax and social security are applied.
Which is cheaper to live in?
Canada, by cost index (London 113 vs Toronto 72, NY = 100). Weigh net pay against cost together, not separately.

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