Thousands of Brits are living the American dream: 'Salaries average 40-50% higher'

Thousands of British nationals are living the American dream. High wages, low taxes in some states and business opportunities lead have become attractive to those seeking new job and academic challenges.

A report by The Telegraph showed that between 2022 and 2024, the United States became the top destination for British migrants, ahead of places such as Australia and the United Arab Emirates.

According to the data, it is estimated that around 700,000 British citizens reside in the United States, with a presence spread throughout the country. Of these, approximately 120,000 live in New York, 35,000 in Los Angeles and 15,000 in Washington, D.C.

"Salaries average [40-50%] higher than in the U.K., and while healthcare concerns previously deterred some, NHS challenges have made this less of an issue – as well as the fact that U.S. healthcare is often paid by the employer," explained Patricia Casaburi, managing director of immigration consultancy Global Citizen Solutions.

Property tax is equivalent to 0.45% of the assessed value of the home, making it attractive to homebuyers. Sales tax, which combines the state and local rate, averages about 8.38%.

Thanks to these tax advantages, Arizona has become an attractive option for British expats who want a more affordable tax environment. That's the case for Katy McQuade, a real estate agent with two decades of experience, who resides in Carefree, Ariz., a small town near Scottsdale.

Her lifestyle is, in many ways, as laid-back as her town's name, as she pays only a fraction of the taxes that apply in East Coast states such as New York or Washington.

"I’m in quite a high tax bracket, but I try to find workarounds nonetheless – such as creating a PLC," she explains. "I pay [10%] tax on what I earn, although when I was making closer to $100,000 a year, I would have nudged into the [20%] tax bracket."

And even though there are others who chose other states with higher taxes, the high salary and opportunities for new business is still a big draw.

Peter's story 

One story that reflects this is that of Peter, who co-founded a medical technology startup and has lived in the United States since 1999. He says he feels more American than British and does not miss his country. At 70 years old, he has U.S. citizenship and barely retains a slight accent.

His first trips to the U.S. were for work in the 1980s, but everything changed in 1997 when on a flight to Denver he met the woman who would become his wife.

After marrying and living for a time in the U.K., the couple moved first to Washington, D.C., then to San Diego, and finally settled in New York in 2009.

As an entrepreneur, Peter earns between three and four times more than he would in the U.K. His wife, who works as a radio journalist, earns eight to 10 times as much.

The data backs up this income gap strongly. According to U.S. salary analysis firm Payscale, the average annual salary in New York is about $93,000 (about 70,000 pounds).

By comparison, workers in London earn an average of just 46,000 pounds a year (about $61,000), while in cities in the north of England, such as Manchester or Leeds, the average salary drops even further, standing at around 34,000 pounds (about $45,000).

This means that, on average, a worker in New York earns more than twice as much as someone in the north of England, and about 50% more than a worker in London, which represents a significant difference in purchasing power, even taking into account the higher cost of living in New York.

However, Peter is also critical of the state's fiscal policy. By contrast, he highlights Republican states like Texas as an example:

"I’m fine with the high tax in principle here, but it’s definitely the reason so many people leave New York – there are tons of U.S. states where we could be paying considerably less," he says, adding that his company is based in San Antonio, which provides some tax relief.

Peter is clear that he would not return to the U.K. He believes that in the U.S., people are more ambitious and more open to staying active in the workforce even after retirement. For example, founding a startup in his 70s has seemed to him to be totally accepted by those around him, whereas in the U.K., he believes, such a decision would be seen as out of the ordinary.