Expat Tax Calculator

How FEIE Works for US Expats

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.

FEIE vs Foreign Tax Credit: Which Is Better?

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

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What This Calculator Doesn't Cover

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

This plan is not currently for sale while its figures are being re-verified against their sources.