Cape Town VS London

Cost of Living & Salary Comparison 2026

Cape Town
South Africa
28.4
COLI Index
#88
Global Rank
ZAR
Currency
London
United Kingdom
87.5
COLI Index
#6
Global Rank
GBP
Currency

Key Differences

Cost of Living
28.4
87.5
1BR Rent (USD/mo)
$650
$2,500
Total Deductions
21.4%
26.6%
Exchange Rate
1 ZAR = 0.0413 GBP
Is Cape Town cheaper than London?

Yes, Cape Town is 68% cheaper than London based on our cost of living index. Cape Town has a COLI of 28.4, while London has a COLI of 87.5. 68% cheaper

Key Takeaways: Cape Town vs London

Overall, Cape Town is approximately 68% cheaper than London based on our cost of living index. Cape Town has a COLI of 28.4 (ranked #88 of 182 cities), while London has a COLI of 87.5 (ranked #6).

When it comes to housing, one-bedroom apartment rent in Cape Town averages $650/month compared to $2,500/month in London. That makes Cape Town approximately 74% cheaper for rent alone.

Cape Town has lower total deductions (21.4%) compared to London (26.6%), meaning you keep more of your gross salary in Cape Town. When evaluating a relocation, remember that total deductions directly impact your take-home pay and should be weighed alongside cost of living differences.

Tax & Deductions Comparison

Full breakdown of mandatory payroll deductions for a mid-range salary as a local employee in each city.

Cape Town

Income Tax
21%
UIF
0.0%
Total: 21.4%Take-Home: R 305,138/yr

London

Income Tax
15%
National Insurance (NI)
8.0%
Council Tax (avg)
3.6%
Total: 26.6%Take-Home: £36,294/yr

Rates shown for local employees. Expat deductions may differ — use the main converter for personalized calculations.

Salary Equivalent

If you earn R 1,366,717 in Cape Town, you would need approximately £174,001 in London to maintain the same purchasing power. That is 68% more due to higher cost of living.

Salary Comparison by Job Title

Estimated mid-level annual salaries in local currency, adjusted for each city's cost of living:

Job Title Cape Town (ZAR) London (GBP)
Doctor (General) R 931,554 £118,599
Software Engineer R 439,901 £56,005
Product Manager R 517,530 £65,889
Lawyer R 517,530 £65,889
Data Scientist R 491,654 £62,594
Marketing Manager R 372,622 £47,440
Teacher R 248,414 £31,627
Nurse R 300,167 £38,215

Salary estimates are adjusted by each city's COLI relative to the New York baseline. Actual salaries vary by company, experience, and industry.

Neighborhoods

Cape Town (Top 5)

NeighborhoodMultiplier
Clifton1.40x (+40%)
Camps Bay1.35x (+35%)
Constantia1.22x (+22%)
Sea Point1.18x (+18%)
City Bowl1.15x (+15%)

London (Top 5)

NeighborhoodMultiplier
Mayfair1.45x (+45%)
Chelsea1.38x (+38%)
Kensington1.35x (+35%)
Marylebone1.32x (+32%)
Hampstead1.30x (+30%)

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Frequently Asked Questions

Is Cape Town or London more expensive?

London is more expensive overall. Cape Town has a COLI of 28.4 while London has a COLI of 87.5, making Cape Town approximately 68% cheaper.

What salary in London equals R 1,366,717 in Cape Town?

To maintain the same standard of living as R 1,366,717 in Cape Town, you would need approximately £174,001 in London.

Is rent cheaper in Cape Town or London?

Average one-bedroom rent in Cape Town is $650/month compared to $2,500/month in London. Cape Town has lower rent by approximately 74%.

Which city has lower taxes, Cape Town or London?

Cape Town has lower total deductions (21.4%) compared to London (26.6%), meaning you keep more of your gross salary in Cape Town.

Explore Each City

Data Sources & Methodology

Cost of living indices (COLI) are benchmarked to New York City = 100 and derived from Numbeo and Expatistan crowd-sourced price surveys, cross-referenced with national statistics agencies. Rent data from Numbeo Property Prices.

Salary ranges are compiled from the U.S. Bureau of Labor Statistics (OES), Glassdoor, and PayScale. Tax rates are approximate effective rates for mid-range earners based on OECD Taxing Wages and national tax authorities. Exchange rates from the European Central Bank. Neighborhood multipliers are estimated from local rental indices and property data.

Last updated: 2026-02-28. Data is refreshed periodically. All figures are estimates for informational purposes only.