Sovereign

Tech

Software Engineer Salary · New York vs London

Net pay, tax drag, and purchasing power modeled for 2025 offers. Built for relocating teams, expats, and comp committees.

Net pay

New York

$128,853

25.9% effective rate

Net pay

London

£71,068

39.3% effective rate

Annual delta

Spread

+$57,785

New York advantage

City

New York

The global financial capital, characterized by high compensation but significant cost of living and local tax burdens.

Median professional income

$78,500

Role modeled

Software Engineer

Gross base

$174,000

Net after tax

$128,853

Cost-of-living index

73

Rent index

64

City

London

Europe’s leading financial center. Salaries typically include a "London weighting" to offset housing costs.

Median professional income

£48,500

Role modeled

Software Engineer

Gross base

£117,000

Net after tax

£71,068

Cost-of-living index

56

Rent index

56

Purchasing power

Net income vs lifestyle drag

New York

$10,738

Housing$3,221
Essentials$2,148
Discretionary$2,684
Savings$2,684

London

£5,922

Housing£1,777
Essentials£1,184
Discretionary£1,481
Savings£1,481

Cost-of-living deep dive

Flip into the COL template for this exact pair. See rent burdens, discretionary drift, and PPP commentary.

Open COL page

Remote benchmark

Need a borderless baseline? Run the remote analyzer across our tier-one city basket.

Remote comparison

More combinations

Interlink into adjacent hubs to keep crawlers following the mesh.

Frequently asked

Who wins for Software Engineer net pay: New York or London?+
New York keeps about $57,785 more after tax (25.9% effective rate) compared to London (39.3%).
How different are the cost-of-living profiles?+
New York posts a cost-of-living index of 73 and rent index of 64. London comes in at 56 / 56. The purchasing power gap tightens once you factor in rent and lifestyle drift.
What salary uplift offsets London's taxes?+
You would need roughly £95,132 in additional gross compensation to match the same take-home pay in New York.