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Quick answer
It depends on your income type and destination. The WhereNext Expat Tax Calculator estimates what you'd owe using the two levers that decide it: the Foreign Earned Income Exclusion — up to $132,900 of earned income in 2026 (Form 2555) — and the Foreign Tax Credit, which offsets your US tax against income tax you paid abroad. It compares your take-home across 20+ countries. A data-driven model, not tax advice.
Key facts
Estimate your US tax burden if you move abroad. Calculates FEIE exclusion ($132,900 for 2026), Foreign Tax Credit offset, and destination country tax — so you can see your real take-home.
Assumes: single filer, employment income, tax resident of destination.
The Foreign Earned Income Exclusion (FEIE) lets US citizens and residents living abroad exclude up to $132,900 of foreign earned income from US federal income tax in 2026. To qualify, you must meet either the Bona Fide Residence Test (living abroad for a full tax year) or the Physical Presence Test (330 days outside the US in a 12-month period).
FEIE only applies to earned income — wages, salary, and self-employment income. Investment income, capital gains, pensions, and Social Security are NOT excluded. For income above the exclusion threshold, the Foreign Tax Credit (FTC) can offset US tax dollar-for-dollar against taxes paid to your destination country.
It depends on your income and destination. If you move to a low-tax country (UAE, Panama, Thailand), FEIE is usually better because there's little foreign tax to credit. If you move to a high-tax country(Germany, France, Netherlands), FTC may be better because you can credit the high foreign tax against your US liability.
For income above $132,900, you need FTC regardless. Many expats use both: FEIE on the first $132,900 and FTC on the remainder. The optimal strategy depends on your specific income, destination, and filing status — which is exactly what our Tax Report models.
This is a quick estimate for employment income. A complete expat tax analysis also considers: state tax obligations (California, New York, and other “sticky states”), self-employment tax under totalization agreements, investment income taxation, special destination regimes (Spain's Beckham Law, Portugal's IFICI, Italy's Impatriate regime), FBAR and FATCA filing requirements, and exit tax implications. Our Tax/Relocation Risk Packet ($79) covers all of these with 4+ destination scenario comparisons.
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