NYC vs. London cost of living: the international move, honestly
Two of the world's most expensive cities, two very different tax systems, and two currencies. We compare New York City and London on rent, home prices, salaries, and taxes — the numbers that actually decide whether an international move works.
New York, NY
London
Side-by-side comparison
London figures shown in GBP and converted to USD at ~£1 = $1.27 for like-for-like comparison. FX rates move — treat the USD column as directional.
| Metric | New York, NY | London (GBP) | London (USD) |
|---|---|---|---|
| Median rent (monthly) | $3,650 | £2,400 | $3,048 |
| Median home price | $780K | £565K | $718K |
| Median salary | $105,000 | £55,000 | $69,850 |
| Effective tax rate | 0.283% | 33.5% | 33.5% |
| Mortgage burden | 58.2% | 42% | 42% |
| Childcare (monthly) | $2,400 | £1,600 | $2,032 |
| School quality (0–10) | 80 | 8 | 8 |
| Overall score | 64 | 72 | 72 |
NYC layers federal, New York State, and NYC city income tax — an effective burden that can top 40% for top earners. London pays UK income tax plus National Insurance, with a 45% top rate above £125k. The gap narrows at high incomes, but the UK system generally taxes middle earners more and top earners slightly less than NYC.
Median rent runs $3,650 in NYC vs £2,400 (~$3,048) in London. Home prices are the real divergence — NYC's median is $780K vs London's £565K (~$718K), reflecting the UK's smaller-unit housing stock.
NYC's median salary of $105,000 is materially above London's £55,000 (~$69,850). Finance and tech comp in NYC generally leads by 20–40% at the senior end — but higher healthcare and childcare costs eat into the delta.
London households benefit from the NHS at the point of care and £0 employer health premiums; NYC families budget for insurance premiums, deductibles, and out-of-pocket costs. Childcare is expensive in both, but NYC's monthly full-time bill is typically higher than London's.
Expect visa costs (US H-1B/O-1 or UK Skilled Worker), international shipping (~$8–15k for a family), a new lease in a currency that isn't your paycheck, and a first-year tax filing in both countries. Budget 3–6 months of buffer above your normal moving reserve.
401(k)s and Roth IRAs don't map onto SIPPs and ISAs cleanly. Both countries have a tax treaty, but moving mid-career often means pausing one system to contribute to the other. If retirement wealth matters to you, model this before signing an offer.
The international move bottom line
NYC vs London isn't a "which is cheaper" question — both are top-tier expensive. The right lens is what your compensation, tax residence, and life stage look like after the move. Nominal pay usually favors NYC; healthcare, childcare, and public infrastructure usually favor London. FX moves can add or erase 10%+ of your purchasing power in a year, so pressure-test the plan against a stronger and a weaker pound.
- • NYC: higher salaries, higher rent-to-income, and heavier out-of-pocket healthcare.
- • London: NHS coverage, smaller homes for the money, slightly lower top-end taxes.
- • Both: expect a 3–6 month cash buffer to absorb visa, shipping, and setup costs.
- • Retirement accounts don't move with you — model the pause in contributions.
Model your NYC ↔ London move
Simulate the real numbers with your salary offer, savings, and household. FuturePath handles the currency, tax, and cost-of-living math so you can see the after-tax picture before you sign.