Gross vs. Net: What You Really Earn in 12 International Cities
Earning a high salary sounds great—until you see how much disappears in taxes and deductions. What really matters is net income, the amount that hits your bank account. In this article, we compare gross and net salaries in 12 global cities to reveal where your earnings stretch the furthest—and where they vanish.
What We’re Comparing
- Gross annual salary (pre-tax)
- Net annual salary (after income tax and mandatory deductions)
- Effective tax rate (%)
- Net as % of Gross
This framework shows the real impact of taxation on your pay.
City-by-City Breakdown (2025)
| City | Gross Salary | Net Salary | Effective Tax Rate | Net % of Gross |
|---|---|---|---|---|
| San Francisco | $120,000 | $85,000 | 29% | 71% |
| Berlin | $65,000 | $44,500 | 32% | 68% |
| London | $75,000 | $53,250 | 29% | 71% |
| Singapore | $90,000 | $81,000 | 10% | 90% |
| Tokyo | $80,000 | $64,000 | 20% | 80% |
| Dubai | $85,000 | $85,000 | 0% | 100% |
| Toronto | $70,000 | $49,000 | 30% | 70% |
| Sydney | $85,000 | $61,250 | 28% | 72% |
| Paris | $70,000 | $42,000 | 40% | 60% |
| Buenos Aires | $30,000 | $24,000 | 20% | 80% |
| Cape Town | $40,000 | $32,000 | 20% | 80% |
| Kuala Lumpur | $45,000 | $36,000 | 20% | 80% |
Figures are annual averages in USD for single earners, 2025 estimates.
Top 3 Cities by Net % of Gross
- Dubai – 100% net (0% income tax)
- Singapore – 90% net (10% tax)
- Tokyo/Buenos Aires/Cape Town/Kuala Lumpur – 80% net (20% tax)
Tax-free or low-tax regimes clearly boost take-home pay.
Bottom 3 Cities by Net % of Gross
- Paris – 60% net (40% tax)
- Berlin – 68% net (32% tax)
- Toronto – 70% net (30% tax)
High social contributions and progressive tax rates eat into earnings.
Why Gross Isn’t the Whole Story
A $120k salary in San Francisco feels impressive, but after taxes you keep just 71%. Conversely, $85k in Dubai yields the full amount—making it effectively higher. Always consider net income when negotiating or comparing offers.
How to Use This Data
- Relocating? Check our City Comparison tool for deeper insights.
- Visa planning? Some locations offer tax incentives—explore with our Visa Eligibility checker.
- Calculate your take-home: Use the Take-Home Pay Calculator for personalized results.
Final Takeaway
Gross salary figures are misleading without context. By focusing on net income and effective tax rates, you uncover where your money truly goes—and which cities maximize your earnings. Always look beyond the sticker price to make informed career and relocation decisions.