UK vs Dubai Tax Comparison 2026 — Where Do You Keep More?
If you're a UK professional considering a move to Dubai, the #1 question isn't about sand or skyscrapers — it's about tax.
Dubai's 0% income tax sounds incredible on paper. But the full picture is more nuanced. Let's break it down with actual numbers.
The Numbers
On a £100,000 salary:
| UK | Dubai | |
|---|---|---|
| Gross salary | £100,000 | £100,000 (AED 462,000) |
| Income tax | ~£27,432 | £0 |
| National Insurance | ~£4,686 | £0 |
| Take-home pay | ~£67,882 | ~£100,000 |
Dubai saves you ~£32,000/year on paper. But...
The Real Costs
- Cost of living: Dubai is ~25% more expensive than London for rent
- School fees: International schools cost £10k-25k/year per child
- Healthcare: Private insurance required (employer usually covers basic)
- No pension: No NI contributions means no state pension accrual
Who Wins?
Dubai wins if:
- You're under 40 and maximizing savings
- No kids (or employer pays school fees)
- You plan to return to the UK eventually (can save/invest the tax difference)
UK wins if:
- You value the NHS, pension, and worker protections
- You have school-age children
- Your career benefits from UK professional network
Calculate Your Own Numbers
Everyone's situation is different. Use the TaxYourSalary calculator to compare take-home pay across 10+ countries with your exact salary.
Disclaimer: This is for informational purposes. Consult a tax professional before making international moves.
