Expat Tax Planning

Expat & Migration Statistics 2026: How Many Americans Live Abroad, Where U.S. Income Moves, and What Changes in 2027

27 min read

How many Americans actually live abroad (and why nobody can say precisely), where American income moves inside the United States before it leaves, the global migration picture around it, and what changes going into 2027. Compiled from IRS SOI migration data, FVAP, AARO, UN DESA, IOM, ILO, UNHCR, UNESCO, World Bank and OECD releases. Every figure is tied to a primary source and dated, with downloadable tables.

Colored pins and threads on a world map above research binders and a small model airplane.
Justin Malone, authorBy Justin Malone, Co-Founder & CEO
Sources and review notes

Compiled and fact-checked against IRS SOI Tax Stats U.S. Population Migration Data (filing years 2022-2023), IRS Revenue Procedure 2025-32 (tax year 2026 inflation adjustments), Federal Voting Assistance Program (2022), American Citizens Abroad (2022), the Association of Americans Resident Overseas estimate (2023), Tax Foundation state income tax legislation tracking, UN DESA International Migrant Stock 2024, the IOM World Migration Report 2026, ILO Global Estimates on International Migrant Workers (4th ed., 2024), UNHCR Global Trends 2024, UNESCO/UIS higher-education data (2023), World Bank/KNOMAD Migration and Development Brief 40 (2024), the OECD International Migration Outlook 2024, and the InterNations Expat Insider 2025 survey.

Quick Summary

Between 4.4 and 5.5 million American citizens live outside the United States, and the widely quoted "9 million" figure is retired: the State Department stopped using it because citizens abroad are never required to register, so no comprehensive list exists. State tax residency is a separate legal question. IRS domestic migration data track address changes between matched returns: in filing years 2022 to 2023, Florida drew about $20.6 billion in net adjusted gross income, close to four times the next state, and Palm Beach County recorded the largest net AGI inflow of any county in the nation while Cook County recorded the largest outflow. Going into 2027 the state picture diverges further, with Hawaii adding a new 13% top bracket while Indiana, Montana, Nebraska and North Carolina cut theirs and South Carolina moves toward elimination. Globally, about 304 million people now live outside their country of birth. Figures are dated and linked to their sources, with methodology limitations noted.

Key Takeaways

1

The "9 million Americans abroad" figure is retired

The State Department stopped using its long-quoted 9 million estimate and told AARO it could not verify the number, because U.S. citizens are not required to register their presence abroad. Credible current estimates run from 4.4 million (FVAP, 2022) to 5.5 million (AARO, 2023).

2

Nobody records your departure, which is exactly the tax problem

The absence of any registration system is why Americans abroad are hard to count, and it is the same reason a former state keeps its claim on you. No federal process notifies your state that you left or ends your residency.

3

Florida drew about $20.6 billion in net income, four times the runner-up

IRS SOI migration data for filing years 2022 to 2023 shows Florida with roughly $20.6 billion in net adjusted gross income inflow, ahead of Texas ($5.5B), South Carolina ($4.1B), North Carolina ($3.9B) and Tennessee ($2.8B). Three of the top five levy no income tax.

4

Palm Beach gained the most income of any U.S. county; Cook County lost the most

The same IRS release puts Palm Beach County, Florida at roughly $3.0 billion in net AGI inflow, the highest of any county in the country, while Cook County, Illinois recorded the largest net outflow.

5

State income taxes diverge further in 2027

Hawaii adds a new 13% top bracket for tax year 2027 and Maine has a 2% surtax over $1 million from 2026, while Indiana falls to 2.9%, Montana to 5.4%, Nebraska to 3.99% and North Carolina to 3.49%. South Carolina, Oklahoma, Mississippi and West Virginia have passed phase-out measures.

6

The FEIE rises to $132,900 for 2026, and does nothing about state tax

Revenue Procedure 2025-32 sets the Foreign Earned Income Exclusion at $132,900 for tax year 2026, up from $130,000. The 2027 figure is expected around October 2026. The exclusion is federal only and has no effect on a state residency claim.

7

304 million people live outside their country of birth

UN DESA and the IOM put the global migrant stock at about 304 million as of mid-2024, roughly 3.7% of the world population, up from about 84 million in 1970.

8

"Expat", "migrant", "refugee" and "nomad" are not the same thing

Official data tracks international migrants, meaning anyone living outside their birth country. Expats and digital nomads are lifestyle subsets with no official headcount, which is why estimates for them vary so widely.

9

Moving abroad does not end your U.S. tax obligations

U.S. citizens owe federal tax on worldwide income wherever they live, and a high-tax home state can keep taxing you until you change domicile, which is a documented legal step rather than a consequence of leaving.

This article is part of our US Expat Tax Guide series. See also: Florida Residency for Expats

Last updated: September 2026. Figures are compiled from primary sources (IRS SOI, UN DESA, IOM, ILO, UNHCR, UNESCO, World Bank, OECD, FVAP and AARO). U.S. migration data runs through filing year 2023; global indicators run through mid-2025 for some series and 2022 to 2024 for others. Every number below is labelled with its source and reference date.

Reliable expat and migration statistics for Americans moving abroad are harder to find than the volume of coverage suggests. The most repeated figure in the category, the claim that 9 million Americans live overseas, is one the U.S. government itself no longer stands behind. Meanwhile the one dataset that measures American movement precisely, the IRS record of where filers and their income actually relocate, barely appears in expat coverage at all.

This guide is a data reference, not an opinion piece. It answers four questions in order: how many Americans actually live abroad and why nobody can say precisely, where American income moves inside the United States before it leaves, what the global picture looks like around that, and what changes going into 2027. Every hard number is tied to a primary source with a clear date. Where the data are robust, we say so. Where they are survey-based or industry estimates, we say that too.

There is a practical edge to all of it. U.S. citizens are taxed on worldwide income no matter where they live, and a former home state can keep taxing you until you formally change your domicile. The absence of any system that registers your departure is simultaneously why the population is hard to count and why the tax claim is hard to shake. We flag those implications throughout and link to deeper guidance, including whether expats still owe state taxes and how to change your U.S. state residency while living abroad.

Free tool

Wondering what your current state would cost you while you live abroad? The 50-state comparison of income tax rates and residency rules shows the annual difference for your income, with each state's residency test alongside it.

How Many Americans Live Abroad? (And Why Nobody Actually Knows)

If you have read almost anything about Americans moving abroad, you have seen the figure 9 million. It appears in news articles, relocation guides, and marketing copy across the industry. It is also, as of 2024, a number the U.S. government no longer stands behind.

Read this first: The State Department used the 9 million estimate from roughly 2016 onward, then stopped. The Association of Americans Resident Overseas reports that a State Department official confirmed the department had "stopped using that number," explaining that it could not be verified because "U.S. citizens are not required to register their presence abroad" and the government does not maintain comprehensive lists of overseas residents. If a source published after 2024 still quotes 9 million without qualification, it is repeating a retired estimate.

What replaced it is not one number but a range, because every organisation counting Americans abroad is doing so with a different method and a different definition. Here is the honest state of the evidence:

Source Year Estimate What it counts
FVAP (Federal Voting Assistance Program) 2022 4.4 million Civilians only, built from foreign government data and tax records. The most conservative credible figure.
American Citizens Abroad 2022 5.1 million 3.9 million civilians plus 1.2 million military and government personnel.
Pinto analysis (used by AARO) 2023 5.5 million UN migration data, U.S. census data and individual country censuses. Includes "accidental Americans", excludes military.
United Nations 2020 3 million Counts primarily U.S.-born individuals, so it undercounts naturalised citizens who emigrate.
World Population Review 2024 8 million or more No methodology disclosed. Treat with caution; this is the kind of figure that keeps the retired 9 million number in circulation.

The defensible answer for 2026 is roughly 4.4 to 5.5 million American citizens living outside the United States, depending on whether you count military personnel and dual nationals who have never lived in the U.S. Anyone quoting a single precise figure is being more confident than the data allows.

Why this matters for you: the same absence of registration that makes Americans abroad hard to count is what makes a former state's tax claim hard to shake. There is no federal system that records your departure, notifies your state, or ends your residency. Your state of domicile does not change because you left the country. It changes when you take documented steps to change it, and until you do, a high-tax state can continue to treat you as one of its taxpayers. That is covered in detail in whether expats still owe state taxes.

Where Americans Move Before They Move Abroad: The IRS Migration Data

IRS migration data describe domestic address changes between matched tax returns. They provide context for state-to-state moves, but do not establish that Americans generally move domestically before going abroad or why a household moved.

The dataset is SOI Tax Stats: U.S. Population Migration Data, and this comparison uses filing years 2022 to 2023. It reports the number of returns filed (a proxy for households), personal exemptions claimed (a proxy for people), and total adjusted gross income, broken out by state, by county, by AGI band, and by age of the primary taxpayer. It is free, downloadable as CSV and Excel, and it is the closest thing that exists to a ledger of where American income is relocating.

The states gaining the most income

Measured by net adjusted gross income inflow, which is the AGI arriving with new residents minus the AGI leaving with departing ones, the table below ranks domestic U.S. migration for 2022 to 2023. Values are rounded to one decimal billion; international flows are excluded:

State Net AGI inflow, 2022–2023 State income tax
Florida about $20.6 billion None
Texas about $5.5 billion None
South Carolina about $4.1 billion Yes
North Carolina about $3.9 billion Yes
Arizona about $2.8 billion Yes

Florida recorded close to four times the net AGI inflow of Texas. Arizona ranks fifth at $2.757 billion, just ahead of Tennessee at $2.753 billion; both round to $2.8 billion. These figures describe income associated with matched tax-return moves, not the reasons people moved.

The county picture is sharper still

At county level the same release shows Palm Beach County, Florida with the largest net AGI inflow of any county in the United States, roughly $3.0 billion. At the other end, Cook County, Illinois, which contains Chicago, recorded the largest net AGI outflow of any county in the country. One county gaining three billion dollars of annual income while another sheds more than anywhere else is not a lifestyle trend. It is a tax base moving.

Planning an international move? This dataset cannot determine your individual residency or filing obligations. Use the state-residency guide for Americans abroad to identify the questions relevant to your move.

How to read the IRS data yourself

Two cautions, because this dataset is regularly misquoted:

  • It measures filers, not people. A "return" approximates a household. Personal exemptions approximate individuals. Neither is a population count, and non-filers are invisible in it.
  • It lags by roughly two to three years. The 2022 to 2023 release reflects moves made between filing a 2021 return and filing a 2022 return. Anyone citing it as current-year migration is overstating what it shows.

Used carefully, though, it is the most reliable migration evidence available in the United States, and it is the reason the no-income-tax states appear in every serious analysis of where American income is going.

How Many People Live Outside Their Country of Birth?

The headline figure comes from the UN Department of Economic and Social Affairs (UN DESA), which maintains the authoritative International Migrant Stock dataset. Its 2024 revision puts the number of international migrants, defined as people living in a country other than the one they were born in, at about 304 million as of mid-2024, equal to roughly 3.7% of the world's population (up from 2.9% in 1990).

That total has more than tripled since 1970, and it has consistently grown faster than the world's population:

International migrants worldwide, 1970โ€“2024

1970
84.5M
1990
153M
2000
174M
2010
221M
2020
281M
2024
304M

Source: UN DESA, International Migrant Stock (2024 revision and prior revisions); author's compilation. Mid-year estimates, in millions.

Three clarifications matter for reading this number correctly:

  • It is a stock, not a flow. The 304 million is the total number of people living abroad at a point in time, not the number who moved in 2024. Annual flows are far smaller.
  • It counts country of birth, not citizenship. A person who naturalized decades ago still appears in the migrant stock. This is why the figure includes long-settled residents, not just recent arrivals.
  • Growth has outpaced population. The migrant share of the world rose from 2.9% (1990) to 3.7% (2024) even as the global population itself grew by more than 2.5 billion over the same period.

Methodology: What We Mean by "Expats" vs. Migrants, Refugees, and Nomads

Most confusion about migration statistics comes from mixing up categories that the source data keep separate. Here is how the terms are actually defined by the bodies that produce the numbers:

  • International migrants (UN DESA, World Bank), people living in a country other than their country of birth. This is the broadest category, and it includes labour migrants, international students, family migrants, and refugees. The 304 million headline figure refers to this group.
  • Expats, an informal, popular term with no statistical definition. It usually describes people who live abroad by choice: skilled workers, retirees, entrepreneurs, digital nomads, and their families, typically for the longer term. The data here mostly tracks international migrants, with subsets (workers, students) called out where official figures exist.
  • Refugees and forcibly displaced people (UNHCR), people forced to move by conflict, persecution, violence, or disaster. Some cross international borders (refugees and asylum seekers); many do not (internally displaced people, or IDPs). They are tracked separately, for humanitarian rather than economic reasons.
  • Digital nomads, remote workers who change countries frequently. There is no official UN, OECD, or government count; all population figures come from market research and industry surveys.

Because these groups overlap (a refugee is also an international migrant; a digital nomad may or may not be counted in any official stock), we are explicit throughout about which dataset each number comes from.

Primary datasets used in this guide

Every figure below is drawn from one of the following primary sources. We have linked each so you can verify the original:

Who Are the World's Expats? Workers, Students, Refugees, and Families

The 304 million figure is an umbrella. Underneath it are several distinct populations, each measured by a different specialised agency.

Migrant Workers

The largest identifiable subgroup is people who move to work. The ILO's most recent estimate puts the number of international migrant workers at 167.7 million in 2022, about 4.7% of the global labour force, and an increase of more than 30 million since 2013. That means migrant workers account for well over half of all international migrants.

They are also highly concentrated: migrant workers cluster in high-income regions, North America, Western and Southern Europe, and the Gulf Cooperation Council (GCC) states, where labour demand and wage differentials are greatest. This concentration is what produces the destination patterns in the next section.

Forcibly Displaced People

A separate and sobering count comes from UNHCR. At the end of 2024, about 123.2 million people were forcibly displaced worldwide by conflict, persecution, violence, and disaster, refugees, asylum seekers, internally displaced people, and others in need of protection. That is roughly 1 in every 67 people on the planet.

For the first time in over a decade the trend edged down in 2025: UNHCR reported displacement easing to about 122 million by April 2025, driven by limited returns and reclassification in some contexts. Two caveats matter. First, only a portion of the displaced cross an international border, many are IDPs who never leave their own country and so do not appear in the international migrant stock. Second, displaced people are tracked for humanitarian reasons; very few would describe themselves as "expats" in the lifestyle sense, and conflating the two misreads both datasets.

International Students ("Education Expats")

Students are one of the fastest-growing migrant categories. According to UNESCO, the number of internationally mobile tertiary students rose from about 2.1 million in 2000 to nearly 7.3 million in 2023, more than tripling in a generation. Even so, they represent only about 3% of all higher-education enrolment globally; studying abroad remains a minority experience.

Destinations are highly concentrated: roughly half of all international students are hosted by about ten countries, the United States, United Kingdom, Australia, Germany, Canada, France, Tรผrkiye, China, the Netherlands, and the Republic of Korea. Many of these students become longer-term "education expats," transitioning to post-study work visas and, eventually, permanent residence, one of the most common on-ramps from temporary mobility to settled migration.

Where Do Expats Live? Top Destination Countries in 2024

There are two very different ways to rank destinations: by the absolute number of migrants a country hosts, and by the share of its population that is foreign-born. They produce almost completely different lists.

Table A: Top destination countries by number of migrants (2024)

# Country International migrants (2024)
1United States52.4 million
2Germany16.8 million
3Saudi Arabia13.7 million
4United Kingdom11.8 million
5France9.2 million
6Spain8.9 million
7Canada8.8 million
8United Arab Emirates8.2 million
9Australia8.1 million
10Russian Federation7.6 million
11Tรผrkiye7.1 million
12Italy6.6 million

Source: UN DESA, International Migrant Stock 2024 (mid-2024). Countries with the largest migrant populations.

The United States hosts more international migrants than any other country, about 52.4 million, more than triple second-placed Germany. The IOM's World Migration Report 2026 frames the same picture: the U.S. holds the single largest share of the global migrant total, while the Gulf states have the highest proportions of foreign-born residents.

Table B: Top countries by foreign-born share of population (2024)

# Country Foreign-born share
1Qatar~77%
2United Arab Emirates~74%
3Kuwait~67%
4Bahrain~55%
5Singapore~43%
6Saudi Arabia~38%

Source: UN DESA, International Migrant Stock 2024 (migrant stock as a share of population, mid-2024). Shares are approximate and vary by source and vintage; several small territories (e.g., Monaco, Macao SAR) also exceed 60% but are usually excluded from country rankings.

The contrast is striking. The countries with the most migrants are large, wealthy economies. The countries that are most migrant are small, oil-rich Gulf states whose economies were built on foreign labour, in Qatar and the UAE, foreign-born residents outnumber citizens by roughly three to one.

For Americans abroad: the U.S. sitting atop the destination table is the flip side of a fact worth remembering, the U.S. is one of only a handful of countries that taxes its citizens on worldwide income no matter where they live. If you have left, or are about to, see U.S. expat tax filing requirements for 2026 and how a Florida domicile for expats removes the state-tax layer.

The Best Countries for Expats in 2025 (Survey-Based Rankings)

The tables above count where migrants are. They say nothing about where migrants are happiest. For that we turn to the largest recurring expat survey, InterNations' Expat Insider 2025, which polled 10,085 expats across 172 nationalities living in 46 countries and ranked destinations across five indices: Quality of Life, Ease of Settling In, Working Abroad, Personal Finance, and Expat Essentials (digital life, admin, housing).

The 2025 top ten is dominated by Latin America and Southeast Asia, primarily on the strength of affordability, local friendliness, and ease of settling in:

# Country Region
1PanamaLatin America
2ColombiaLatin America
3MexicoLatin America
4ThailandSoutheast Asia
5VietnamSoutheast Asia
6ChinaEast Asia
7United Arab EmiratesMiddle East
8IndonesiaSoutheast Asia
9SpainEurope
10MalaysiaSoutheast Asia

Source: InterNations Expat Insider 2025 (survey of 10,085 expats; fielded February 2025).

Read this correctly: these are self-reported satisfaction rankings, not counts of expats. A small, contented expat community can outrank a country that hosts millions of migrants. The list tells you where surveyed expats report a good experience, not where most people actually move.

Notice what is absent: the high-income destinations that host the most migrants (the U.S., Germany, the U.K., Canada) rarely top satisfaction surveys, largely because of housing costs, bureaucracy, and the cost of settling in. We return to that tension in the section on challenges below.

Wherever you land, your U.S. home base still matters

Panama, Mexico, Portugal, Thailand, the destination changes your lifestyle, but if you are American it does not change your tax citizenship. What you can change is your U.S. state. Establishing domicile in a no-income-tax state like Florida before you go means you keep more of every dollar while you live abroad. Compare your options in our guide to the best and worst domicile states for expats, or see exactly what you would save with the state tax comparison calculator.

Explore Florida residency for expats →

TURN THE DATA INTO 0% STATE TAX

Living Abroad as an American? Stop Paying State Income Tax

Hundreds of millions of people live outside their birth country, and U.S. citizens owe federal tax wherever they go. You do not have to owe state tax too. A Florida domicile through Your Tax Base gives you a real residential street address that is not a PO Box or CMRA, a Declaration of Domicile, and audit-ready documentation, so you pay 0% state income tax while you live anywhere in the world.

Why People Move Abroad: Work, Family, Education, and Safety

People rarely move for a single reason, but the data does reveal the dominant channels. The clearest breakdown comes from the OECD, which tracks permanent migration into its 38 (mostly high-income) member countries. In 2023, OECD countries recorded a record ~6.5 million new permanent migrants, an all-time high (OECD International Migration Outlook 2024).

Of that total, permanent labour migration was just under 1.2 million (roughly 18%), while family migration was the single largest channel and humanitarian admissions rose sharply year-on-year. The newer 2025 Outlook reports that inflows eased somewhat from the 2023 peak.

A note on precision: exact category shares shift between OECD editions and depend on how "permanent-type" migration is defined. Treat the channel split as directional (family largest, labour next, humanitarian elevated) rather than as fixed percentages, and always check which year and edition a figure refers to.

Work and Career (Labour Migration)

Wage differentials and labour shortages are the engine of economic migration, which is why migrant workers concentrate in North America, Western Europe, and the Gulf. For Americans, "moving for work" increasingly means moving remotely, see our remote work tax guide and Florida residency for remote workers.

Love and Family (Family Migration)

Family reunification, spouses, children, and parents joining a migrant already settled abroad, is consistently the largest category of permanent migration to OECD countries. It is also the most stable, since it depends on relationships rather than economic cycles.

Education (Students)

As covered above, 7.3 million students studied outside their home country in 2023. Education is often the first step in a longer migration journey, converting into post-study work permits and, eventually, permanent residence.

Safety and Humanitarian Protection

The 123.2 million forcibly displaced people counted by UNHCR move not by choice but by necessity. Conflict, persecution, and increasingly climate-linked disasters drive this category, which the World Bank and IOM identify, alongside wage gaps and demographic imbalances, as one of the structural forces behind rising global migration.

Economic Impact: Remittances, Taxes, and Growth

The single biggest economic footprint of migration is money sent home. According to the World Bank and KNOMAD, remittances to low- and middle-income countries reached about $656 billion in 2023 (up 0.7% on 2022), rose to an estimated $685 billion in 2024, and pushed global remittances to roughly $905 billion (IOM World Migration Report 2026).

Remittances, recent estimates (US$ billions)

LMICs, 2023
$656B
LMICs, 2024
$685B
Global, 2024
$905B

Source: World Bank/KNOMAD, Migration and Development Brief 40 (2024); IOM World Migration Report 2026. LMICs = low- and middle-income countries.

The scale is hard to overstate: remittances to low- and middle-income countries now exceed both foreign direct investment and official development assistance (foreign aid) combined. For dozens of countries, money sent home by migrants is the single largest source of external finance.

Table C: Top remittance-receiving countries (2023)

# Country Remittances received (2023)
1India$120 billion
2Mexico$66 billion
3China$50 billion
4Philippines$39 billion
5Pakistan$27 billion
6Bangladesh~$23 billion
7Egypt~$22 billion
8Nigeria~$20 billion
9Guatemala~$20 billion
10Uzbekistan~$16 billion

Source: World Bank/KNOMAD, Migration and Development Brief 40 (2024). Ranks 1โ€“5 are reported figures; ranks 6โ€“10 are approximate, confirm against the KNOMAD remittances database before reuse.

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What Migrants Contribute in Their Destination Countries

Remittances flow out, but migrants also generate enormous value where they live. In the United States, the foreign-born make up roughly 19% of the labour force and, by Council on Foreign Relations and American Immigration Council estimates, generate on the order of $1.7 trillion in economic output and pay about $650 billion in taxes each year.

The flip side for U.S. expats: those tax contributions are a reminder that U.S. tax obligations follow citizens, not addresses. Americans abroad still file federal returns and can still be claimed by a former home state. Learn how to stop overpaying in our guide to taxes you may still owe a state you no longer live in, and how the new 1% U.S. remittance tax affects transfers in 2026.

The Rise of Remote Expats and Digital Nomads

This is the most over-claimed corner of migration statistics, so we will be precise about what is known and what is not.

There is no official UN, OECD, or government count of digital nomads. Every population figure you see comes from industry surveys and market research, and the numbers swing wildly depending on definition, full-time versus part-time, minimum time abroad, employees versus freelancers. With that caveat, the credible estimates generally cluster in the 40โ€“50 million range worldwide by the mid-2020s (some surveys run higher, toward 80 million; roughly 18 million are estimated to be American).

Data limitations: why this number is soft.

  • No statistical agency defines or counts "digital nomads," so there is no authoritative baseline.
  • Surveys self-select respondents already engaged with nomad communities, which inflates estimates.
  • Definitions differ on how long and how often someone must travel to qualify, so totals are not comparable across sources.

What is well-documented is the policy response. As of 2026, more than 50 countries offer a dedicated digital-nomad or remote-worker visa, from Portugal and Spain to Indonesia, the UAE, and dozens of others. Requirements typically include proof of around $850โ€“$2,000 in monthly income (some European programmes require considerably more) and grant stays valid for one to three years. The number of countries with such a visa is a hard, verifiable figure; the size of the nomad population is not.

A nomad visa lets you stay. A Florida domicile lets you pay 0% state tax.

For American remote workers and nomads, the foreign visa solves where you can live, but your U.S. tax home is a separate question. Without a fixed address, a high-tax former state can keep taxing you, and banks increasingly close accounts for citizens who cannot verify a U.S. residential address. Establishing Florida domicile as a digital nomad gives you a real residential street address, a Declaration of Domicile, and 0% state income tax, the stable U.S. base behind your mobile life.

Go deeper: the 2026 digital nomad tax guide, why Florida is the digital nomad's state-tax solution, and how to legally pay $0 federal tax with the FEIE.

See Florida residency for digital nomads →

Going Into 2027: What Changes for Americans Abroad

Two things are moving at once as 2027 approaches. Federal thresholds for Americans abroad are drifting upward with inflation, and state income taxes are splitting into two visibly different camps. If you are planning a move, the second matters far more than the first.

Federal figures: confirmed for 2026, pending for 2027

The IRS published the 2026 inflation adjustments in Revenue Procedure 2025-32, covering more than sixty provisions. The ones that matter to expatriates:

Provision Tax year 2025 Tax year 2026
Foreign Earned Income Exclusion $130,000 $132,900
Foreign housing base amount Not separately published $21,264
Maximum foreign housing expense Not separately published $39,870
Covered expatriate income threshold $206,000 $211,000
Covered expatriate exclusion amount $890,000 $910,000

The 2027 figures have not been published yet. The IRS normally issues the following year's inflation adjustments in October, so the tax year 2027 amounts are expected around October 2026. We will update this table when they are released. Treat any 2027 FEIE figure you see quoted before then as a projection, not an official number.

Worth being precise about what the exclusion does and does not do: the FEIE reduces federal tax on earned income for those who qualify under the physical presence or bona fide residence tests. It does nothing at all about a state's claim on you. A Californian abroad who has correctly claimed the FEIE can still receive a state assessment, because the two systems are unrelated. See the Foreign Earned Income Exclusion 2026 guide.

State income tax: the divergence widens in 2027

The more consequential shift is at state level, where the country is pulling apart. Since 2021, 23 states have cut their top marginal income tax rate, while six states and the District of Columbia have raised theirs. Several of those changes land in 2027:

State Change taking effect Direction
Hawaii A new 13% bracket for tax year 2027, the state's highest Increase
Maine 2% surcharge above $1 million for single/MFS or $1.5 million for MFJ/HOH, from 2026 Increase
North Carolina Rate falls from 3.99% to 3.49% in 2027 Cut
Indiana Flat rate drops to 2.9% for 2027 Cut
Montana Top rate drops to 5.4% for 2027 Cut
Nebraska Top rate lowered to 3.99% for 2027 and beyond Cut
South Carolina 2026 rates of 1.99% and 5.21%; future reductions depend on revenue conditions Cut

Future reductions in South Carolina, Oklahoma and Mississippi depend on their statutory schedules and revenue conditions. West Virginia reduced its rates for 2026, with a top rate of 4.58%. A current rate cut does not by itself establish a guaranteed date for eliminating a tax. The downloadable state tax table links each entry to its legislative or revenue-agency source.

Moving overseas does not by itself settle state tax residency. Domicile, statutory residency, source income and any applicable exceptions determine exposure. A top marginal rate applies only to income in the relevant bracket, not automatically to all income.

Rates for every state, updated as legislation passes, are maintained in our 50-state comparison of income tax rates and residency rules.

Challenges for Expats: Visas, Integration, and Cost of Living

The same InterNations 2025 data that crowns Latin America and Southeast Asia also exposes where the expat experience is hardest. High-income destinations, Canada, the United Kingdom, Germany, the Nordics, and Italy, frequently rank near the bottom on Ease of Settling In and Personal Finance, weighed down by housing costs and bureaucracy. The countries at the top of the overall ranking earn their place largely on affordability and local friendliness rather than on high incomes.

OECD and national data confirm the pattern: housing costs and visa complexity have climbed across much of the high-income world, even as those same governments compete harder than ever for skilled migrants. The result is a widening gap between where it is desirable to live and where it is easy to settle.

That gap is exactly why many mobile professionals adopt a strategy of residency arbitrage: live where quality of life is high and costs are low, while anchoring your legal and tax home where the rules are simplest and least expensive. For Americans, the legal/tax anchor is the part you control most directly, your state of domicile.

The American advantage: you cannot opt out of U.S. federal tax by moving, but you can opt out of state income tax by changing your domicile to a no-tax state before you go. The catch is that high-tax states fight back, as the 2025 New York Hoff decision showed, paperwork alone is not enough. See the 2026 expat state-tax traps and our playbook on changing your state residency while living abroad to do it defensibly.

Downloadable Data and How to Cite This Guide

The datasets behind this guide are free to use. We have packaged the core figures as plain CSV files so journalists, researchers, and students can work with them directly. If you use them, please cite the original sources (linked in each file and in the references below) and link back to this guide.

How to cite this guide

Your Tax Base (2026). Expat & Migration Statistics 2026: How Many Americans Live Abroad, Where U.S. Income Moves, and What Changes in 2027. Retrieved from https://yourtaxbase.com/blog/expat-migration-statistics. Underlying data: IRS SOI Tax Stats, FVAP, American Citizens Abroad, AARO, Tax Foundation, UN DESA, IOM, ILO, UNHCR, UNESCO, World Bank/KNOMAD, OECD, and InterNations (see references).

How Your Tax Base Helps

Three hundred million people live outside their country of birth, and for the Americans among them, the hardest part is often not the move but the paperwork left behind. Your Tax Base helps U.S. citizens establish and maintain a defensible Florida domicile, the zero-income-tax legal home base behind a life lived abroad:

  • A real Florida residential street address, not a P.O. box or mail-drop, with lease documentation and a utility bill in your name.
  • Declaration of Domicile filing assistance under Florida Statutes ยง222.17.
  • Mail scanning and forwarding so you receive everything sent to your Florida address, anywhere in the world.
  • Audit-ready documentation designed to satisfy banks (KYC) and stand as a complete record if a former high-tax state asks.

Living abroad? Stop paying state income tax you do not owe.

See what a Florida domicile would save you with the state tax comparison calculator, or explore plans built for expats, digital nomads, and remote workers.

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For Americans Living Abroad

Choosing a Domicile State

Establishing Florida Domicile

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Sources and References

  1. UN DESA, Population Division: International Migrant Stock 2024 (migrant counts and shares; mid-2024).
  2. IOM: World Migration Report 2026 (global synthesis; 304 million / 3.7%; remittances).
  3. ILO: Global Estimates on International Migrant Workers, 4th edition (2024) (167.7 million migrant workers; reference year 2022).
  4. UNHCR: Global Trends: Forced Displacement in 2024 (123.2 million displaced; June 2025).
  5. UNESCO Institute for Statistics: internationally mobile students (7.3 million; 2023).
  6. World Bank / KNOMAD: Migration and Development Brief 40 (remittances; June 2024).
  7. OECD: International Migration Outlook 2024 (reasons for migration to OECD countries; November 2024).
  8. InterNations: Expat Insider 2025 (expat satisfaction rankings; survey of 10,085 expats).
  9. Council on Foreign Relations: How Does Immigration Affect the U.S. Economy? (U.S. labour-force share, output, and taxes; 2025).

About This Data & Disclaimer

Figures are compiled from the third-party primary sources cited above and reflect the latest data available as of June 2026. International migration statistics are revised periodically, definitions differ between agencies, and some indicators (notably digital-nomad population estimates and certain country-level shares) are inherently approximate; we have flagged these throughout. Always consult the original source before relying on a figure for publication.

This article is for educational and informational purposes only and does not constitute tax, legal, or financial advice. Tax laws are complex and change frequently. Consult a qualified tax professional or attorney before making domicile, residency, or relocation decisions. Your Tax Base provides domicile establishment services but is not a law firm, CPA firm, or registered tax advisory service.

Frequently asked questions

How many Americans live abroad?
Between roughly 4.4 and 5.5 million, depending on the source and what it counts. The Federal Voting Assistance Program estimated 4.4 million civilians in 2022, American Citizens Abroad estimated 5.1 million including military and government personnel in 2022, and the analysis used by AARO put it at 5.5 million in 2023. The widely quoted figure of 9 million is retired: the State Department stopped using it and told AARO it could not be verified, because U.S. citizens are not required to register their presence abroad and the government keeps no comprehensive list. Treat any single precise number with suspicion.
Where are Americans moving to abroad?
There is no authoritative government ranking, for the same reason there is no reliable total: departures are not registered. Estimates are assembled from destination-country census and residency data, which is why country-level figures can vary by a factor of two to five between sources. What is measured precisely is domestic movement before the international move. IRS migration data for filing years 2022 to 2023 shows Florida with about $20.6 billion in net adjusted gross income inflow, ahead of Texas, South Carolina, North Carolina and Tennessee.
Why do I have to pay U.S. taxes if I live abroad?
Because the United States taxes on the basis of citizenship rather than residence, which puts it in a very small group of countries that do so. Your federal filing obligation continues wherever you live, though the Foreign Earned Income Exclusion ($132,900 for tax year 2026) and the Foreign Tax Credit can reduce or eliminate what you actually owe. Separately, your former state can keep taxing you until you legally change your domicile, and that state layer is not affected by the FEIE at all.
Do expats pay state taxes?
It depends entirely on domicile, not on where you physically live. If your legal domicile is still California, New York or another high-tax state, that state can continue to assess you while you live overseas, because leaving the country does not by itself end residency. If your domicile is a state with no income tax, such as Florida, Texas or Tennessee, there is no state return to file. Changing domicile is a documented legal step involving an address, filings and evidence of intent, not an automatic consequence of moving.
Which U.S. states are gaining and losing the most income?
IRS SOI migration data for filing years 2022 to 2023 shows Florida gaining about $20.6 billion in net adjusted gross income, roughly four times the next state, followed by Texas ($5.5 billion), South Carolina ($4.1 billion), North Carolina ($3.9 billion) and Tennessee ($2.8 billion). At county level, Palm Beach County, Florida recorded the largest net AGI inflow in the country at about $3.0 billion, while Cook County, Illinois recorded the largest net outflow. Three of the top five gaining states levy no personal income tax.
What is changing for expats and state taxes in 2027?
At federal level the inflation-adjusted thresholds move up, with the Foreign Earned Income Exclusion at $132,900 for tax year 2026 and the 2027 figure expected around October 2026. At state level the picture diverges: Hawaii adds a new 13% top bracket for tax year 2027, and Maine applies a 2% surtax over $1 million from 2026, while Indiana drops to 2.9%, Montana to 5.4%, Nebraska to 3.99% and North Carolina to 3.49%. South Carolina, Oklahoma, Mississippi and West Virginia have all passed measures that gradually phase their income tax out.
How many expats are there in the world in 2024 to 2026?
As of mid-2024 there were about 304 million international migrants worldwide, according to UN DESA and the IOM World Migration Report 2026. "International migrant" is the official term for anyone living in a country other than their country of birth, which includes labour migrants, students, family migrants and refugees. The narrower lifestyle category of "expats", meaning skilled workers, retirees, entrepreneurs and digital nomads who choose to live abroad, is a subset of that total, and no official body publishes a separate worldwide expat count.
What percentage of the world lives outside their birth country?
About 3.7% of the global population were international migrants as of mid-2024 (UN DESA). That share has risen gradually from 2.9% in 1990. In other words, roughly 96% of people still live in the country where they were born. International migration is significant and growing, but remains the exception rather than the rule.
Which countries have the most expats and migrants?
By absolute numbers, the United States hosts the most international migrants, about 52.4 million in 2024, followed by Germany (16.8M), Saudi Arabia (13.7M), the United Kingdom (11.8M) and France (9.2M), per UN DESA. By share of population, the Gulf states lead: Qatar is roughly 77% foreign-born and the United Arab Emirates roughly 74%, followed by Kuwait at about 67%.
How much money do migrants send home in remittances?
Global remittances reached an estimated $905 billion in 2024, of which about $685 billion went to low- and middle-income countries (World Bank/KNOMAD and IOM WMR 2026). The largest recipients in 2023 were India ($120 billion), Mexico ($66 billion), China ($50 billion), the Philippines ($39 billion) and Pakistan ($27 billion). Remittances to low- and middle-income countries now exceed both foreign direct investment and official development assistance.
What is the difference between an expat, a migrant, a refugee and a digital nomad?
An "international migrant" (the UN and World Bank term) is anyone living outside their country of birth. A "refugee" or forcibly displaced person has been forced to move by conflict, persecution or disaster and is tracked separately by UNHCR. An "expat" is an informal term, usually for someone who relocates abroad by choice for work, retirement or lifestyle. A "digital nomad" is a remote worker who moves between countries frequently; there is no official count of nomads, only industry estimates.
How many digital nomads are there in the world?
There is no official count. Industry and market-research estimates generally cluster in the 40 to 50 million range worldwide, though figures vary widely depending on how a "nomad" is defined (full-time versus part-time, minimum time abroad, and so on). What is well documented is the policy response: more than 50 countries now offer a digital-nomad or remote-worker visa, typically requiring proof of around $850 to $2,000 in monthly income and valid for one to three years.

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