Moving to USA from UK 2026 -- Visa, Tax, Healthcare and Cost of Living

Last reviewed: 26 April 2026

Moving to USA from UK is one of the most sought-after emigration routes for British nationals, combining access to a large labour market, world-class universities, and a high standard of living across diverse regions. The process is significantly more complex than moving within the EU or to countries with bilateral visa-free work agreements; most UK nationals require either a non-immigrant work visa (sponsored by a US employer) or an immigrant visa (green card) obtained through family, employer sponsorship, or investment. For the UK tax residency rules that apply in the year of departure, see our UK tax residency guide. For managing UK bank accounts and transferring money to the USA, see our UK expat banking guide.

The USA operates a worldwide taxation system -- unique among developed countries alongside Eritrea -- meaning all US citizens and green card holders (Lawful Permanent Residents) are taxed on their worldwide income regardless of where they live. UK nationals who become US Lawful Permanent Residents (green card holders) or US citizens immediately become subject to US worldwide income tax on all income from all sources. The UK-USA Double Taxation Convention (1975, Protocol 2003, gov.uk) provides mechanisms to eliminate double taxation; the US also allows a Foreign Tax Credit (IRC Section 901) against US tax for foreign taxes paid. The US Foreign Earned Income Exclusion (FEIE, Form 2555) allows qualifying US persons abroad to exclude approximately USD 126,500 per year (2025, per IRS) of foreign earned income from US tax. UK nationals who are not US citizens or green card holders are generally only taxed in the USA on US-source income.

Visa options: H-1B, L-1, O-1 and green card routes

The US immigration system offers numerous non-immigrant and immigrant visa categories relevant to UK professionals. The H-1B visa (specialty occupation, typically requiring at least a bachelor’s degree) is the most common work visa for UK professionals; H-1B applications are subject to an annual cap of 65,000 (plus 20,000 for US master’s degree holders), with selection via lottery if oversubscribed. The L-1 visa (intracompany transferee) is available for UK employees of US multinationals who transfer to a US affiliate; the L-1A (managers/executives) and L-1B (specialised knowledge) are the two sub-categories. The O-1 visa is for individuals with extraordinary ability in science, arts, business, or athletics; qualification requires demonstrating sustained national or international recognition. Immigrant visa (green card) routes include: EB-1 (extraordinary ability, outstanding professors, multinational executives -- no labour certification required); EB-2 (advanced degree professionals or exceptional ability); EB-3 (skilled workers); EB-5 (investors, minimum USD 800,000 in a Targeted Employment Area or USD 1,050,000 outside, creating 10 jobs). The US State Department at travel.state.gov/content/travel/en/us-visas.html and USCIS at uscis.gov are the authoritative references for current visa categories, fees, and processing times.

US federal income tax: rates and UK-USA DTC

US federal income tax for 2025 (IRS, irs.gov/taxtopics/tc409) runs at: 10% on taxable income up to USD 11,925 (single filer); 12% on USD 11,926-48,475; 22% on USD 48,476-103,350; 24% on USD 103,351-197,300; 32% on USD 197,301-250,525; 35% on USD 250,526-626,350; 37% above USD 626,350. The standard deduction for 2025 is USD 15,000 for single filers. State income tax is additional; California levies up to 13.3% (the highest US state rate); Texas, Florida, and Nevada have no state income tax. The UK-USA DTC (1975, amended by Protocol 2003, gov.uk/guidance/usa-double-taxation-convention-tax-treaty) eliminates double taxation on employment income, pensions, dividends, and interest between the two countries. UK nationals who are US tax residents claim a Foreign Tax Credit on Form 1116 for UK taxes paid. US Social Security and Medicare (FICA) taxes are: 6.2% employee Social Security (on earnings up to USD 176,100 in 2025) and 1.45% Medicare (no cap); employers match these contributions. The UK-USA Social Security Totalization Agreement (1984) prevents double Social Security contributions for temporary assignments (up to 5 years).

US healthcare: employer plans, marketplace, and costs

The United States has no universal public healthcare system; most employed individuals receive employer-sponsored health insurance. Employer group health plans typically cover approximately 73% of employee premium costs (Kaiser Family Foundation, kff.org, 2024 Employer Health Benefits Survey); the employee pays the remaining 27% via payroll deduction. For a single employee, the average 2024 employer plan premium is approximately USD 7,900 per year total, of which the employee pays approximately USD 1,600 per year. For families, the total premium averages approximately USD 24,000 per year. UK nationals who are not covered by an employer plan can purchase coverage through the ACA Marketplace (healthcare.gov); premiums for an individual aged 35 in 2026 average approximately USD 500-800 per month (before any subsidies) for a silver-level plan, according to Kaiser Family Foundation analysis. UK nationals who arrive in the USA from the UK are entitled to NHS treatment in the UK under the NHS Regulations if they visit, but have no US healthcare entitlement other than emergency treatment (which is charged to the patient). UK travel and health insurance is essential for the period before US employer coverage begins; confirm with your US employer the healthcare start date, as there is typically a 30-90 day waiting period.

US banking for UK nationals: opening accounts

UK nationals moving to the USA can open US bank accounts with major US banks (Chase, Bank of America, Wells Fargo, Citi) once they have a US address and Social Security Number (SSN). The SSN is issued by the Social Security Administration (ssa.gov) and is required for most financial services, tax filing, and employment. UK nationals on work visas (H-1B, L-1, O-1) receive an SSN after commencing work; the SSN application is made in person at a Social Security Administration office with the work visa and employment authorisation. Some US banks (Wise, HSBC USA) allow accounts to be opened before arriving in the USA with a passport and visa; HSBC’s international premier service allows existing HSBC UK customers to open an HSBC USA account before departure. For transferring money from the UK to the USA: the Bank of England publishes daily GBP/USD rates; at April 2026, GBP/USD is approximately 1.27. FCA-authorised UK transfer providers (Wise FCA 900507, OFX FCA 517165) offer GBP-to-USD transfers at 0.35-0.55% above mid-market, significantly cheaper than UK bank SWIFT transfers at 2-3% margin plus £15-25 SWIFT fee.

UK tax residency in the year of departure

UK nationals who leave the UK to move to the USA must satisfy the Statutory Residence Test (SRT, Schedule 45 Finance Act 2013) to establish UK non-residency. The automatic overseas test for those UK-resident in any of the prior 3 years requires spending fewer than 16 UK days per tax year. Split-year treatment (Case 1 for those leaving to work full-time abroad) may apply where the individual leaves during the UK tax year; the UK tax charge applies only to the UK part of the year. HMRC’s RDR3 guidance at gov.uk/guidance/the-statutory-residence-test-srt is the authoritative reference. For UK nationals who maintain UK property (renting it out), UK rental income remains taxable in the UK via the NRLS scheme (20% withholding, now 22% from 6 April 2026 per the Autumn Budget 2025 OOTLAR) regardless of US residency. The UK-USA DTC assigns taxing rights on UK rental income to the UK under the property income article; the IRS credits the UK tax paid against US tax on the same income via Form 1116. UK government service pensioners (NHS, civil service) moving to the USA continue to pay UK income tax on those pensions under DTC Article 19(2); US government service pensions of UK-based US nationals are taxed only in the USA.

Cost of living in the USA for UK expats

The USA’s cost of living varies enormously by city and region. The US Bureau of Labor Statistics Consumer Price Index (bls.gov) and Consumer Expenditure Survey provide the authoritative national cost data. Major cost differences versus the UK (ONS Family Spending survey 2024): housing is significantly cheaper in most US cities outside New York, San Francisco, and Los Angeles (median US home price approximately USD 412,000 versus UK median of approximately £290,000 at April 2026); groceries are broadly comparable or 10-15% cheaper at US supermarkets (Walmart, Kroger, Trader Joe’s); transport costs are higher due to car dependence (public transport infrastructure is limited outside New York, Chicago, and Boston); healthcare costs are substantially higher (see above). New York City cost of living is approximately 40% higher than London; Houston or Atlanta are approximately 25-30% cheaper than London. Monthly living costs for a single UK expat in a mid-tier US city (rent, groceries, transport, healthcare): approximately USD 3,500-5,000 per month (approximately £2,760-£3,940 at April 2026 rates). Federal minimum wage is USD 7.25 per hour (2025); individual state minimum wages are typically higher (California USD 17/hour, New York State USD 16/hour).

Employment, Social Security and practical setup

UK nationals working in the USA on an employer-sponsored visa (H-1B, L-1) contribute to US Social Security and Medicare (FICA) from day one of employment; these contributions accumulate towards eventual US Social Security retirement benefits. The UK-USA Totalization Agreement prevents double Social Security payments for the first 5 years of a US posting; after 5 years, US Social Security applies exclusively. For permanent green card holders, US Social Security accumulates over working years; the minimum 40 quarters (10 years) of contributions is required for Social Security benefit eligibility. US income tax filing: Form 1040 is the standard annual return; the filing deadline is 15 April (or 15 June for US persons abroad); any tax due must be paid by 15 April. The IRS at irs.gov/individuals/international-taxpayers provides extensive guidance for non-citizen residents and dual-status aliens. UK nationals who become US green card holders but subsequently leave the USA may face a US "exit tax" (expatriation tax under IRC Section 877A) on their worldwide assets if they meet the "covered expatriate" threshold (net worth above USD 2 million or average annual US tax above a threshold); specialist US tax advice is essential before expatriating from the USA.

This article is for general information only and does not constitute tax, legal, financial or immigration advice. Rules and rates change; verify with the primary sources cited or consult a qualified adviser before acting.

FAQ

What visas are available for UK nationals moving to the USA?

Common routes include: H-1B (specialty occupation, employer-sponsored, subject to annual cap and lottery); L-1 (intracompany transferee from UK affiliate to US entity); O-1 (extraordinary ability in science, arts, business, or athletics); EB-1/EB-2/EB-3 immigrant visas (employer-sponsored green cards); EB-5 investment visa (USD 800,000 minimum); and family-based green cards for those with US citizen or permanent resident family members. USCIS (uscis.gov) is the primary reference for current requirements.

Do UK nationals pay UK tax after moving to the USA?

Non-UK-resident UK nationals pay UK income tax only on UK-source income (UK rental, UK government service pension, UK dividends, UK bank interest above allowances). Foreign employment income from a US employer for duties performed in the USA is not UK-taxable for non-UK-residents. The UK SRT automatic overseas test requires spending fewer than 16 UK days per year (for recently UK-resident individuals) to maintain non-UK-residency. HMRC’s RDR3 guidance governs the SRT assessment.

Does the USA have universal healthcare?

No. The USA has no universal public healthcare system. Most employees receive employer-sponsored health insurance; individual marketplace insurance (healthcare.gov/ACA) is available for those without employer coverage. Costs for an individual aged 35 average approximately USD 500-800 per month for a silver-level ACA plan. Medicare (public insurance) is available to US citizens and certain permanent residents aged 65+; Medicaid covers low-income individuals. UK nationals who arrive without employer coverage should obtain private health insurance from arrival.

How is US income taxed for UK nationals who move there?

US federal income tax runs from 10% to 37% (above USD 626,350 for single filers) on worldwide income for US tax residents (including green card holders). State income tax is additional (0% in Texas/Florida to 13.3% in California). The UK-USA DTC and IRS Foreign Tax Credit (Form 1116) prevent most double taxation on income taxed in both the UK and USA. The Foreign Earned Income Exclusion (Form 2555) allows qualifying individuals to exclude approximately USD 126,500 per year of foreign earned income.

What is the cost of living in the USA compared to the UK?

Cost of living varies significantly by US city. New York City is approximately 40% more expensive than London overall. Mid-tier cities (Houston, Atlanta, Phoenix) are approximately 25-30% cheaper than London. Housing is cheaper outside coastal metros; healthcare costs are substantially higher than the UK; transport relies heavily on private cars outside major cities. US Bureau of Labor Statistics Consumer Expenditure Survey provides the authoritative national average cost data at bls.gov.

Can UK nationals open a US bank account before arriving?

Some US banks (Wise, HSBC USA via the HSBC international premier service) allow account opening before arrival for eligible customers. Most major US banks (Chase, Bank of America, Citi) require a US address and Social Security Number (SSN) for account opening. The SSN is issued by the Social Security Administration (ssa.gov) after commencing US employment on a work visa. Wise (FCA 900507, FinCEN-registered) provides a US account number for GBP-to-USD transfers at near-mid-market rates before the US bank account is available.

Sources

1. USCIS -- Visa categories for working in the United States (verified 26 April 2026)
2. IRS -- International taxpayers: US tax for non-US citizens and residents (verified 26 April 2026)
3. GOV.UK -- UK-USA Double Taxation Convention (1975, Protocol 2003) (verified 26 April 2026)
4. HMRC -- Statutory Residence Test guidance (SRT/RDR3) (verified 26 April 2026)
5. US Bureau of Labor Statistics -- Consumer Expenditure Survey (verified 26 April 2026)