Cost of living in the USA vs the UK in 2026

The cost of living in the USA is, on average, around 10 to 15 per cent higher than in the UK in 2026, but the picture changes dramatically depending on which US city you compare to which UK city. Manhattan and San Francisco run substantially more expensive than London. Houston, Charlotte, and Nashville are noticeably cheaper than London on housing and groceries, though more expensive on healthcare and childcare. Salaries in the USA tend to be higher across most professional roles, particularly in technology, finance, and healthcare, which is why many UK to USA movers end up financially better off despite the higher headline costs.

This guide breaks down the real cost differences across housing, healthcare, groceries, transport, tax, and childcare, with figures drawn from current 2026 data.

Housing: the biggest single cost difference

Housing is where the gap between the USA and the UK varies most. A two-bedroom flat in central London rents for around £2,800 a month in 2026. The equivalent in Manhattan runs $4,500 to $6,000. In Brooklyn or Queens, $3,000 to $4,500. In San Francisco, $4,000 to $5,500.

Outside the coastal mega-cities, the picture flips. A two-bedroom apartment in Austin, Texas runs $2,000 to $2,800. In Charlotte, North Carolina, $1,600 to $2,200. In Nashville, $1,800 to $2,500. Property purchase prices follow the same pattern: a four-bedroom house in suburban Charlotte costs less than a one-bedroom flat in Zone 2 London.

If your move is driven by housing affordability, the southern and midwestern US states deliver real value. If your move is to New York or San Francisco, expect to pay 50 to 100 per cent more for housing than equivalent London property.

Healthcare: the structural difference

Healthcare is the single largest structural cost difference between the two countries. UK residents pay nothing at the point of use through the NHS. US residents pay monthly health insurance premiums plus deductibles, copays, and coinsurance.

If your US employer offers a group health plan, you typically pay $200 to $500 per month in premiums for family coverage, with the employer covering the rest. Annual out-of-pocket costs (deductibles plus copays) usually add another $2,000 to $6,000 per year for an average family.

Without employer coverage, marketplace plans run $1,500 to $2,500 per month for a family of four. This is the figure most UK expats find genuinely shocking, particularly those moving without a sponsoring employer.

Build $5,000 to $15,000 a year into your USA budget for healthcare costs that would not exist in the UK.

Groceries and eating out

A weekly grocery shop for a family of four costs roughly £100 to £140 in the UK in 2026. The same shop in the USA runs $160 to $220, depending on the state. Groceries are 15 to 25 per cent more expensive in the USA on a like-for-like basis.

Two notable exceptions: meat is cheaper in the USA, particularly beef and chicken, and fresh produce is cheaper in California, Florida, and Texas during their growing seasons. British imports (Marmite, PG Tips, decent Cheddar) carry a significant premium at speciality stores.

Eating out in the USA is harder to compare directly because you must add 8 to 10 per cent sales tax and 18 to 22 per cent tip on top of the menu price. A meal that lists at $25 actually costs around $32 to $34 once you finish. Factor this into any side-by-side comparison.

Transport, fuel, and cars

Cars are cheaper in the USA. A new mid-range family car costs around 20 to 30 per cent less than the UK equivalent. Fuel is roughly half the UK price: $3.50 to $4.50 per gallon (around 70 to 90 pence per litre) in 2026, depending on state.

Car insurance varies enormously. The same coverage might cost £600 a year in the UK, $1,200 in Texas, and $3,500 in Michigan or Florida. Get state-specific quotes before you commit to a destination.

Public transport is generally weaker than in UK cities. New York, Boston, San Francisco, Washington DC, and Chicago have functional metro systems. Most other US cities are built around the car, and you will need one within the first month of arrival.

Tax: federal, state, and city

US federal income tax rates are similar to UK rates. The complication is the layered system on top.

State income tax varies from zero (Texas, Florida, Tennessee, Washington, Nevada, South Dakota, Wyoming, and Alaska) to 13 per cent (California). New York adds city income tax on top of state tax for residents of New York City.

Sales tax of 5 to 10 per cent applies to most purchases, varying by state and city. Unlike VAT, US sales tax is added at the till rather than included in displayed prices.

Property tax is generally higher than UK Council Tax. A $400,000 home in Texas might attract $8,000 to $12,000 a year in property tax. The same value in California runs $4,000 to $6,000.

For a fuller picture of US tax obligations including FBAR reporting and double taxation treaty implications, see our complete Moving to America from the UK guide.

Childcare and education

Childcare is the cost category most likely to shock UK parents. Full-time daycare for a child under two runs $1,500 to $3,500 per month in major US cities. Even smaller cities rarely come in under $1,200 per month. The UK government’s free childcare hours have no US equivalent.

Public schools are free, but quality varies significantly by district, and your school catchment is determined by where you live. This means housing decisions and schooling decisions are linked. Private schools cost $15,000 to $60,000 per year.

University education runs $30,000 to $80,000 per year for non-residents until your children establish state residency, which usually takes one to two years.

Salaries: the offsetting factor

The reason many UK to USA movers come out ahead financially is salary. US median salaries in technology, finance, healthcare, and law run 30 to 80 per cent higher than UK equivalents in 2026, particularly at mid-career and senior levels. A software engineer earning £75,000 in London might earn $180,000 in San Francisco or $140,000 in Austin.

The calculation that matters is net income after tax and after the cost differences above. For senior professional roles in higher-paying sectors, the USA almost always wins. For lower-paying or junior roles, the UK often wins because healthcare, childcare, and rent costs eat the salary difference.

Planning your UK to USA move

Anglo Pacific has been moving British families to the USA since 1978. We handle full international removals from your UK home to your US destination, with origin packing in the UK, customs clearance at the US port, and door-to-door delivery.

Get a free, no-obligation quote at our USA international shipping page.