United States expat tax guide
North America · how a foreigner who moves to United States is taxed · 2026 · High-tax for movers
If you move to United States, you become a tax resident when substantial presence test / green card; US citizens taxed worldwide regardless of residence. As a resident you are taxed on a worldwide basis — Residents (green-card holders or those meeting the substantial-presence test) are taxed on worldwide income; uniquely, US citizens are taxed on worldwide income regardless of where they live (citizenship-based taxation). The top personal income tax rate is 37%. A foreign pension is treated as: Taxable as ordinary income (treaty may reallocate; foreign tax credit available). United States also offers the FEIE / FTC for citizens abroad regime, which can sharply change this picture. It has a US tax treaty and has a US totalization agreement. Overall it reads as high-tax for movers for an inbound mover. General information, not tax advice — verify with United States's tax authority.
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
United States expat tax at a glance
| Question | United States (2026) |
|---|---|
| When you become tax resident | Substantial presence test / green card; US citizens taxed worldwide regardless of residence |
| Residency day-count trigger | 183 days |
| How residents are taxed | Worldwide — Residents (green-card holders or those meeting the substantial-presence test) are taxed on worldwide income; uniquely, US citizens are taxed on worldwide income regardless of where they live (citizenship-based taxation). |
| Top personal income tax rate | 37% |
| Foreign pension treatment | Taxable as ordinary income (treaty may reallocate; foreign tax credit available) |
| Foreign capital gains / dividends | Worldwide capital gains and dividends taxable; long-term gains/qualified dividends at preferential 0/15/20% rates |
| Special expat / non-dom / retiree regime | FEIE / FTC for citizens abroad |
| US income tax treaty | Yes |
| US social-security totalization | Yes |
Source: PwC Worldwide Tax Summaries. Data as of June 2026.
Compiled from the primary source for United States, cross-checked against PwC Worldwide Tax Summaries, the OECD, the IRS US-treaty list and the SSA totalization list. Rules change — confirm with the official tax authority. This is not tax advice.
What this means if you relocate to United States
The first thing that matters is tax residency: substantial presence test / green card; US citizens taxed worldwide regardless of residence. The 183-day line is the headline trigger, but a home, family or business ties can make you resident sooner — so counting days alone is risky.
Once resident, United States taxes your worldwide income, so income earned abroad is in scope unless a treaty or special regime says otherwise. The top 37% rate only bites at the highest income band — an average earner pays less.
Foreign pensions and investments
Foreign pension: Taxable as ordinary income (treaty may reallocate; foreign tax credit available). Foreign capital gains and dividends: Worldwide capital gains and dividends taxable; long-term gains/qualified dividends at preferential 0/15/20% rates. These outcomes can be overridden by a double-tax treaty, which decides whether the source country or United States taxes each stream — a key reason retirees should map their specific income against the relevant treaty.
The FEIE / FTC for citizens abroad regime
No inbound-expat regime. For its own citizens/residents living abroad, the Foreign Earned Income Exclusion (FEIE, about USD 130,000 in 2025) and the Foreign Tax Credit (FTC) mitigate double taxation.
Special regimes have eligibility tests, time limits and sunset dates that change frequently. Treat the summary above as a starting point and verify the current terms with United States's tax authority before relying on it.
US citizens and social security in United States
| Question | United States |
|---|---|
| US income tax treaty? | Yes |
| US social-security totalization agreement? | Yes |
| Tax basis for residents | Worldwide |
| Top personal income tax | 37% |
A US tax treaty with United States helps reassign taxing rights and reduce withholding, and US citizens lean on the Foreign Earned Income Exclusion and Foreign Tax Credit to avoid double income tax. A totalization agreement means you generally pay social-security contributions to only one of the two countries. See our guides on FEIE vs the Foreign Tax Credit and totalization agreements.
Countries with a similar expat-tax profile to United States
| Country | Tax basis | Top income tax | Special regime |
|---|---|---|---|
| United States (this country) | Worldwide | 37% | FEIE / FTC for citizens abroad |
| Italy | Worldwide | 43% | Lump-sum flat tax + impatriate regime |
| Greece | Worldwide | 44% | 7% pensioner flat tax / non-dom EUR 100k |
| Cyprus | Worldwide | 35% | Non-dom (17 years) + expat exemptions |
| Ecuador | Worldwide | 37% | 5-year new-resident territorial election |
| New Zealand | Worldwide | 39% | Transitional resident exemption |
Frequently asked questions
When do you become a tax resident of United States?
Substantial presence test / green card; US citizens taxed worldwide regardless of residence. The headline trigger is 183 days. Once resident, United States taxes you on your worldwide income. This is general information for 2026, not tax advice — verify with the official authority.
How does United States tax a foreign pension?
Taxable as ordinary income (treaty may reallocate; foreign tax credit available). Tax treaties can reassign who taxes a pension, so the outcome depends on your nationality and the source country. Confirm with a cross-border adviser before relying on this.
What is the FEIE / FTC for citizens abroad regime in United States?
No inbound-expat regime. For its own citizens/residents living abroad, the Foreign Earned Income Exclusion (FEIE, about USD 130,000 in 2025) and the Foreign Tax Credit (FTC) mitigate double taxation. It is a headline summary for 2026; conditions and sunset dates change, so verify the current rules with United States's tax authority.
Is United States good for US citizens or retirees?
United States has a US income tax treaty and has a US social-security totalization agreement. The totalization agreement means you generally pay social-security contributions to only one country. US citizens are taxed on worldwide income wherever they live, but the Foreign Earned Income Exclusion and Foreign Tax Credit usually prevent double income tax. Not tax advice.
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Sources & accuracy
Profile for United States compiled from its primary source, cross-checked with PwC Worldwide Tax Summaries, the OECD, the IRS US-treaty list and the SSA totalization list. Home country for this dataset; treaty/totalization fields set true. Top federal marginal rate 37%; US state income taxes are additional (0% to ~13.3%). Citizenship-based taxation is unique worldwide. Data as of June 2026 (2026 position). This page is general information, not tax advice — tax residency and special regimes are fact-specific and change often, so verify with United States's official tax authority and a qualified cross-border adviser before acting. See our methodology and disclaimer.
Last updated: 2026-06-21