U.S. Expat Tax Calculator
Instantly estimate your U.S. federal tax liability as an expat. Includes Foreign Earned Income Exclusion and Foreign Tax Credit to help you avoid double taxation.
Select Tax Year
Choose the tax year for your calculation
Tax Year 2025: FEIE Limit $130,000 | Standard Deduction: $15,750
Filing Status
U.S. Domicile State
Foreign Residency Confirmation
Income Details
Who Should Use This Calculator?
This calculator is designed for U.S. citizens and green card holders living and working abroad who need to estimate their federal and state tax obligations.
Digital Nomads
Remote workers earning income while traveling abroad who maintain a U.S. domicile state
International Contractors
Self-employed professionals and freelancers working for foreign or U.S. clients from abroad
Expat Employees
Americans working abroad for foreign companies or on international assignments
How the Calculator Works
Our calculator uses official IRS tax brackets and rates to provide accurate federal and state tax estimates for the 2024 and 2025 tax years.
Enter Your Income Details
Input your income broken down into three categories: earned income (salaries, wages, freelance), long-term capital gains (stocks, crypto, real estate), and other passive income (dividends, interest, rentals).
Why separate income categories?
Different types of income are taxed at different rates. Earned income follows standard tax brackets (10%-37%), while long-term capital gains have preferential rates (0%, 15%, or 20%). This separation ensures accurate calculations.
Select Filing Status & State
Choose your filing status (Single, Married Filing Jointly, or Head of Household) and your U.S. domicile state. Your domicile state is where you maintain your legal residence, even while living abroad.
State tax considerations
Some states have no income tax (like Florida, Texas, and Nevada), while others may still tax your worldwide income even if you live abroad. Nine states have no income tax at all, which can save expats thousands annually.
No-Tax States
Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming have no state income tax. New Hampshire only taxes dividends and interest (not wages).
Indicate Foreign Residency Status
Tell us if you qualify for foreign residency (via Physical Presence Test or Bona Fide Residence Test). This determines if you can use the Foreign Earned Income Exclusion (FEIE).
FEIE qualification tests
- Physical Presence Test: Be physically present in a foreign country for at least 330 full days during any 12-month period
- Bona Fide Residence Test: Be a bona fide resident of a foreign country for an entire tax year
Get Your Tax Estimate
The calculator instantly computes your federal and state tax liability, showing you the benefit of FEIE and Foreign Tax Credit. Results include effective tax rate and total taxes owed.
Understanding your results
Federal taxes are calculated using progressive tax brackets, with FEIE applied first (if you qualify), then the Foreign Tax Credit is applied dollar-for-dollar against your remaining liability. State taxes are calculated separately based on your domicile state's tax rate.
Understanding Expat Tax Benefits
Foreign Earned Income Exclusion (FEIE)
Exclude up to $126,500 (2024) or $130,000 (2025) of your foreign earned income from U.S. taxation. You must meet either the Physical Presence Test or Bona Fide Residence Test.
Key Requirements
Best For
- • Lower to middle income expats
- • Digital nomads and remote workers
- • Those earning below $126,500-$130,000
Foreign Tax Credit (FTC)
Claim a dollar-for-dollar credit for income taxes paid to foreign governments. No income limit, but limited to your U.S. tax liability.
Key Requirements
Best For
- • High earners above FEIE limit
- • Those in high-tax countries
- • Investment income and passive income
Can You Use Both?
You cannot use both FEIE and FTC on the same income. However, if your income exceeds the FEIE limit ($126,500 for 2024, $130,000 for 2025), you can use FEIE on the first portion and FTC on the remaining income. Most tax professionals recommend using FEIE first if you qualify, then applying FTC to excess income and non-earned income.
Different Types of Income
Understanding how different income types are taxed is crucial for accurate tax planning
Earned Income
Income from personal services and labor. This is the only type of income that qualifies for the Foreign Earned Income Exclusion (FEIE).
Examples Include:
- Salaries and wages
- Self-employment income
- Freelance and consulting fees
- Professional services
- Bonuses and commissions
- Tips and gratuities
Tax Treatment
Taxed at ordinary income rates (10%-37%). Eligible for FEIE exclusion if foreign residency requirements are met.
Long-Term Capital Gains
Profits from the sale of assets held for more than one year. These receive preferential tax treatment with lower rates than ordinary income.
Examples Include:
- Stock sales (held >1 year)
- Cryptocurrency gains
- Real estate sales
- ETF and mutual fund gains
- Collectibles and art
- Business asset sales
Tax Treatment
Taxed at preferential rates: 0%, 15%, or 20% depending on income level. NOT eligible for FEIE, but can use Foreign Tax Credit if foreign taxes were paid on these gains.
Other Passive Income
Income received from investments and other sources without active involvement. This income is taxed at ordinary income rates and is NOT eligible for FEIE.
Examples Include:
- Dividend income
- Interest income
- Rental income
- Royalties
- Pension distributions
- Annuity payments
Tax Treatment
Taxed at ordinary income rates (10%-37%). NOT eligible for FEIE, but can use Foreign Tax Credit if foreign taxes were paid on this income.
Real Tax Savings Examples
See how much expats can save using FEIE and Foreign Tax Credit
Digital Nomad in Portugal
Scenario
- • Single filer, Florida resident
- • $85,000 earned income (freelance)
- • $5,000 dividend income
- • Qualifies for FEIE (330+ days abroad)
- • Paid $8,000 in Portuguese taxes
Tax Breakdown
Married Couple in Thailand
Scenario
- • Married filing jointly, Texas resident
- • $180,000 combined earned income
- • $20,000 long-term capital gains
- • Both qualify for FEIE
- • Minimal Thai taxes paid ($2,000)
Tax Breakdown
High Earner in Germany
Scenario
- • Single filer, California resident
- • $200,000 earned income
- • $30,000 passive income
- • Qualifies for FEIE
- • Paid $65,000 in German taxes
Tax Breakdown
Note: California taxes worldwide income for residents. Consider establishing domicile in a no-tax state like Florida or Texas to avoid state taxes entirely and save an additional $23,200.
Frequently Asked Questions
Who qualifies for the Foreign Earned Income Exclusion?
To qualify for FEIE, you must have foreign earned income, your tax home must be in a foreign country, and you must meet either the Bona Fide Residence Test (resident of foreign country for full tax year) or Physical Presence Test (physically present in foreign country for 330 full days in any 12-month period).
Can I use both FEIE and Foreign Tax Credit?
You cannot use both FEIE and FTC on the same income. However, if your income exceeds the FEIE limit ($126,500 for 2024, $130,000 for 2025), you can use FEIE on the first portion and FTC on the remaining income. Most tax professionals recommend using FEIE first if you qualify.
What counts as "foreign earned income"?
Foreign earned income includes wages, salaries, professional fees, and other compensation for personal services performed in a foreign country. It does NOT include investment income, pensions, annuities, social security benefits, or income from U.S. government employment.
Do I still need to file a U.S. tax return as an expat?
Yes! U.S. citizens and green card holders must file a U.S. tax return regardless of where they live or earn income. The filing threshold is the same as for those living in the U.S. However, you may owe little or no U.S. tax if you qualify for FEIE and/or FTC.
How do state taxes work for expats?
Your liability for state taxes depends on your domicile state. Some states (like Florida, Texas, Nevada) have no income tax. Others (like California, Virginia, South Carolina) may continue to tax your worldwide income even while living abroad. Establishing domicile in a no-tax state before moving abroad can result in significant savings. Your Tax Base can help you establish Florida residency.
Is this calculator accurate for my situation?
This calculator provides estimates based on 2024 and 2025 federal tax rates and standard deductions. Your actual tax liability may differ based on additional deductions, credits, self-employment tax, and other factors. Always consult with a qualified tax professional who specializes in expat taxation for personalized advice.
Need Help With Your Expat Taxes?
Our tax professionals specialize in U.S. expat taxation and can help you maximize your savings while staying fully compliant.