Foreign Earned Income Exclusion Calculator 2026 โ€” Expat Tax Calculator

Calculate your FEIE exclusion as an American living abroad. See how much US tax you can exclude, housing exclusion, and whether FEIE or the Foreign Tax Credit saves more.

$
Wages, salary, or self-employment income from foreign employer
$
Interest, dividends, rental income, US wages (not eligible for FEIE)
$
Rent, utilities, renter's insurance โ€” must be for primary residence abroad
$
IRS base: $18,048 (2026, standard); higher in expensive cities
330+ days required for physical presence test
Common scenarios:
$0
US Tax Owed (after FEIE)
$0
FEIE Exclusion
$0
Housing Exclusion
0%
Effective US Tax Rate

Income Waterfall โ€” FEIE Calculation

How to Use This FEIE Calculator

Enter your foreign earned income (wages or self-employment income from a foreign source), any housing costs paid abroad, and your other US-source income. Select whether you qualify via the physical presence test or bona fide residence test. The calculator applies the 2026 FEIE limit of $130,000, calculates your housing exclusion, and applies the stacking rule to show your actual US tax liability.

For a partial year abroad, the exclusion is prorated by the number of qualifying days divided by 365.

The Formula

FEIE Max (2026) = $130,000
Actual Exclusion = min(Foreign Income, FEIE Max) ร— (Qualifying Days รท 365)
Housing Exclusion = max(0, Housing Expenses โˆ’ Housing Base) โ€” capped at 30% of FEIE
Taxable Income = Total Income โˆ’ FEIE โˆ’ Housing Exclusion โˆ’ Standard Deduction
Tax = Stacking rate (brackets applied as if excluded income fills the bottom brackets)

Example โ€” US Citizen in London

Single filer, $150,000 foreign salary, $36,000 rent in London, 365 days abroad:
FEIE exclusion: min($150,000, $130,000) = $130,000
Housing exclusion: ($36,000 โˆ’ $18,048) = $17,952 (capped at 30% ร— $130,000 = $39,000, so $17,952 allowed)
Remaining foreign income: $150,000 โˆ’ $130,000 โˆ’ $17,952 = $2,048
Taxable income (with standard deduction): $2,048 โˆ’ $0 = $2,048 (under standard deduction)
US tax owed: $0 (London income of $150K fully sheltered by FEIE + housing)
Extended

FEIE vs Foreign Tax Credit Comparison

See which strategy saves more based on your foreign tax rate and enter your foreign taxes paid

Enter the taxes you actually paid to the foreign country to see whether FEIE or the Foreign Tax Credit (FTC) results in lower US tax.

$
Total income tax paid to the foreign country
%
For reference โ€” or enter taxes paid above

FEIE vs Foreign Tax Credit โ€” Side by Side

ItemUsing FEIEUsing Foreign Tax Credit

Note: The FTC calculation above is simplified. Actual FTC is limited to the US tax that would have applied to that foreign income. Consult a tax professional for complex situations with multiple income types.

Frequently Asked Questions

What is the Foreign Earned Income Exclusion (FEIE)?
The Foreign Earned Income Exclusion (FEIE) allows qualifying US citizens and resident aliens living abroad to exclude up to $130,000 (2026) of foreign earned income from US federal income tax. "Earned income" includes wages, salaries, self-employment income, and professional fees โ€” but not passive income like interest, dividends, pensions, or rental income.
What is the physical presence test?
To qualify via the physical presence test, you must be physically present in a foreign country or countries for at least 330 full days in any 12-month period. The days do not need to be consecutive, and the 12-month period does not need to align with the calendar year. Unlike bona fide residence, you do not need to intend to stay permanently โ€” only to be physically present.
What is the bona fide residence test?
The bona fide residence test requires that you have established a bona fide (genuine) residence in a foreign country for an uninterrupted period that includes an entire tax year. Factors include whether you intend to stay indefinitely, your living arrangements, business ties, social ties, and whether the foreign country recognizes your residency. It is more subjective than the physical presence test and requires a pattern of long-term residence.
What is the stacking rule and how does it affect my tax?
The stacking rule prevents the FEIE from reducing your tax rate on non-excluded income. When calculating tax on your remaining taxable income, the IRS treats the excluded income as the bottom of your income โ€” meaning your remaining income is taxed at the higher marginal rates that would apply if you had that excluded income. This means the FEIE eliminates tax on excluded foreign income, but it does not reduce the tax rate on your other income.
Should I use the FEIE or the Foreign Tax Credit?
If you live in a country with income tax rates higher than US rates, the Foreign Tax Credit (FTC) is often better โ€” it gives a dollar-for-dollar credit for foreign taxes paid, potentially reducing your US tax to $0. If you live in a low-tax country (below US rates), the FEIE may be better because it directly excludes the income. Many expats use a combination: FEIE for earned income and FTC for passive income or taxes on income above the exclusion limit. Run both scenarios to find your optimal strategy.

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