Tag: medical licensing exams

For internationally trained physicians deciding where to build their career, salary is rarely the only consideration — but it is almost always one of the first. The difference in physician compensation between the United States, Canada, the United Kingdom, and Australia is substantial, and understanding what each country actually pays — at different career stages, across specialties, and after tax — is essential for making an informed decision.

This guide breaks down doctor salaries in all four countries using the most current data available, compares them directly, and explains what the numbers mean in practice.

United States: The Highest Nominal Physician Salaries in the World

The United States pays doctors more in nominal terms than any other country in this comparison — by a significant margin.

According to the 2026 Medscape Physician Compensation Report, the average US physician earns $386,000 in total annual compensation — up 3% from $374,000 in 2025. This figure covers all specialties and practice types.

By Career Stage

Highest-Paying Specialties in the US (2026)

According to the 2026 Medscape Physician Compensation Report, orthopedics topped the list of highest-earning specialties, with an average annual salary of $611,000. The lowest-earning specialty was pediatrics, with an average salary of $266,000.

Other high-earning specialties include:

• Plastic surgery: ~$570,000
• Otolaryngology: ~$536,000
• Cardiology: ~$507,000
• Radiology: ~$503,000
• Dermatology: ~$480,000
• Anaesthesiology: ~$479,000

What Drives US Salaries

The United States operates a predominantly private healthcare system where physician compensation is driven by fee-for-service billing, insurance reimbursement rates, and market competition. This produces higher gross salaries — but also higher overheads, medical malpractice insurance costs (which can exceed $50,000 annually in high-risk specialties), and one of the most expensive medical education systems in the world. US physicians often carry medical school debt of $200,000 or more.

Tax rates vary significantly by state. A California physician faces a top marginal state income tax rate of 13.3%, while Texas and Florida have no state income tax at all.

Canada: Competitive Salaries With Universal Healthcare

Canadian physician compensation is lower than the US in nominal terms but remains among the highest in the world, with the significant benefit of operating within a publicly funded healthcare system.

According to recent data, the average doctor salary in Canada ranges between $230,000 and $520,000+ per year, depending on specialization and other factors.

By Career Stage

By Province

Physician compensation in Canada varies meaningfully by province, largely because most physicians bill provincial health insurance plans on a fee-for-service basis and fee schedules differ between provinces.

Most Canadian physicians are self-employed and bill the provincial health plan directly, meaning their reported income is gross before overhead — which typically runs 25–40% for a fee-for-service practice. After overhead and taxes, a family physician billing $280,000 CAD gross may take home $130,000–$160,000 CAD net.

Key Advantage: Lower Medical Education Debt

Canadian medical school tuition is substantially lower than in the United States — typically $20,000–$30,000 CAD per year — meaning most Canadian physicians enter practice with far less educational debt than their American counterparts. This meaningfully affects lifetime earnings comparisons.

United Kingdom: Structured NHS Pay Scales With Private Practice Upside

UK physician salaries are the lowest in nominal terms among the four countries compared here, but the NHS provides structured career progression, a defined-benefit pension scheme, and freedom from medical malpractice insurance costs that private practice physicians elsewhere must bear.

NHS Pay Scales (2025/26)

Key pay levels for doctors in the UK in 2025/26: Foundation Year 1 (FY1) basic salary of £38,831 per year; consultant basic salary range of £109,725 to £145,478; salaried GP range of £76,038 to £114,743.

Resident doctors will see an average pay rise of 5.4% for 2025 to 2026, comprising a four per cent pay rise alongside a £750 consolidated payment. The average full-time salary for resident doctors will reach around £54,300 in 2025-26.

The Private Practice Premium

NHS consultant salaries represent base NHS earnings only. Consultants with private practice can earn £150,000 to £300,000+ total annually. Private practice income in high-demand specialties — orthopaedic surgery, cardiology, dermatology, plastic surgery — can equal or exceed NHS earnings.

What Drives UK Salaries

The NHS operates on nationally negotiated pay scales, which provides security and predictability but limits the upside available in private-payer systems. The NHS pension scheme — a defined-benefit plan — is a substantial component of total compensation that does not appear in salary figures but represents significant long-term value.

UK income tax is progressive: earnings above £125,140 are taxed at 45% (the additional rate). A consultant earning £120,000 basic takes home approximately £72,000–£78,000 after income tax and National Insurance — roughly 60–65% of gross.

Australia: High Salaries, Strong Quality of Life, and a Growing Shortage Premium

Australia offers physician compensation that is highly competitive globally, a high quality of life, and — increasingly — shortage premiums in rural and regional areas that can substantially boost total earnings.

The overall average doctor’s salary in Australia is around AUD $190,000, however, what a doctor can earn depends on many factors, including their grade and specialty. Junior doctors in Australia earn around AUD $65,000 – $95,000 as an RMO, AUD $73,000 – $133,000 as a senior RMO, and AUD $120,000 – $160,000 as a career medical officer.

By Career Stage

Highest-Paying Specialties in Australia

The highest-paid specialty in Australia is surgery, with an average taxable income of around AUD $394,000.

Other high-earning specialties include:

• Neurosurgery: AUD $350,000 – $850,000+
• Cardiothoracic surgery: AUD $300,000 – $700,000+
• Orthopaedic surgery: AUD $300,000 – $650,000+
• Anaesthesiology: AUD $300,000 – $500,000
• Radiology: AUD $300,000 – $650,000+

Rural and Regional Premiums

Australia faces significant rural doctor shortages, and the government offers substantial financial incentives for physicians willing to work in rural and regional areas — including additional Medicare billing incentives, relocation grants, and salary loadings that can add AUD $30,000–$80,000 per year above metropolitan rates.

Superannuation: The Hidden Salary Component

Australian employers are required to contribute 12% of gross salary (from July 2025) into superannuation — the national retirement savings system. This contribution does not appear in advertised salary figures but represents a meaningful addition to total compensation. On an RMO salary of AUD $95,000, the employer superannuation contribution alone adds approximately AUD $11,400 per year.

The Four-Country Comparison: Key Numbers Side by Side

Which Country Pays Doctors the Most?

In nominal terms: the United States, clearly.

The average US physician earns $386,000 — approximately 2.5 to 3 times the gross earnings of a comparable NHS consultant in the UK, and meaningfully more than the average in Canada and Australia. Top US specialists in surgical fields regularly exceed $600,000.

But nominal figures tell only part of the story.

Several factors significantly complicate a raw salary comparison:

Tax Rates

High marginal income tax rates in Canada (combined federal and provincial rates can reach 50%+ at high income levels), the UK, and Australia mean that a Canadian physician earning $400,000 CAD gross and a US physician earning $400,000 USD gross take home meaningfully different amounts. The US — particularly in low-tax states — often has a lower effective tax burden on high incomes than comparable countries.

Cost of Living

San Francisco, New York, and Boston — among the highest-paying US physician markets — also have some of the highest costs of living in the world. A $400,000 salary in rural Texas and a $400,000 salary in San Francisco have very different real values. Australia and Canada offer high physician salaries in cities with strong quality of life indicators and lower housing costs than the most expensive US markets (though Sydney and Vancouver have their own housing affordability challenges).

Medical Education Debt

US physicians often begin practice with $200,000–$300,000 or more in student loan debt — a liability that takes years to repay and significantly affects net lifetime earnings. Canadian and Australian medical schools charge a fraction of US tuition. UK medical education is subsidised, and student loans for medical training carry income-contingent repayment terms that limit the burden.

Healthcare System Overhead

US physicians in private practice pay malpractice insurance (up to $50,000+ per year for surgical specialties), practice overhead, billing staff, and electronic records systems. NHS and publicly employed Australian physicians are largely insulated from these costs. Canadian physicians bear overhead costs but at lower rates than the US.

Work-Life Balance and Hours

NHS consultants typically work structured contracted hours with defined on-call commitments. Australian physicians in the public system have similar protections. US physicians — particularly in private practice — frequently report longer working hours, greater administrative burden, and higher burnout rates than their counterparts in other countries.

The Verdict: A Nuanced Answer

The USA pays doctors the most in gross terms — it is not a close contest at the specialist level. But after tax, after debt repayment, after malpractice insurance, and accounting for cost of living, the gap between the US and Canada or Australia narrows considerably. For many internationally trained physicians, Canada and Australia offer an attractive combination of competitive compensation, manageable education pathways, strong quality of life, and functional publicly funded healthcare systems.

The UK remains the lowest-paying destination among the four in absolute terms — though a senior consultant with private practice income, NHS pension entitlements, and a London lifestyle makes a genuinely strong total package. The NHS also offers structured training, defined career progression, and employment security that self-employed fee-for-service practice does not.

What This Means for IMGs Choosing a Destination

For internationally trained physicians deciding which country to pursue licensure in, salary is one variable in a larger decision that includes:

• Licensing pathway complexity and timeline — the US (USMLE + residency match) is the longest route; the UK (PLAB) and Australia (AMC) are more direct for many IMGs
• Residency and training recognition — some countries partially recognise training completed elsewhere; others require full re-training
• Long-term career trajectory — specialist training pathways differ significantly across countries
• Family and immigration considerations — visa pathways, permanent residency timelines, and family support systems vary considerably

How CanadaQBank Supports IMGs on Every Licensing Pathway

At CanadaQBank.com, we support international medical graduates preparing for the licensing examinations that open doors to medical careers in Canada, the USA, the UK, and Australia.

Our platform provides comprehensive question banks for:

• MCCQE1 — the Medical Council of Canada Qualifying Examination for Canadian licensure
• USMLE Step 1 and Step 2 CK — the US Medical Licensing Examination pathway
• PLAB 1 — the Professional and Linguistic Assessments Board examination for GMC registration in the UK
• AMC MCQ — the Australian Medical Council examination for medical registration in Australia

Whether you are targeting the highest-paying physician market in the world or building a career in Canada, the UK, or Australia, your licensing examination is the first step — and CanadaQBank is built to help you pass it.

Visit CanadaQBank.com today and start your preparation with a question bank aligned to the exam and the country you are targeting.

Salary data referenced: 2026 Medscape Physician Compensation Report (USA); Canadian Institute for Health Information and provincial billing data (Canada); NHS Agenda for Change and 2025/26 pay scales (UK); Healthcare Australia 2026 Salary Guide and Australian Tax Office data (Australia). All figures are approximate and subject to change. Currency conversion rates fluctuate — always verify current exchange rates when making comparisons.