Foreign Earned Income Exclusion Calculator (2026)
Americans living abroad can exclude up to $132,900 of 2026 foreign earned income from US tax. See what the exclusion is worth for your income.
How to use this calculator
- Enter foreign earned income.
- Enter other US-source income.
- Enter filing status.
- Your results appear instantly below and update as you change the numbers.
How this calculator works
The exclusion removes up to $132,900 of 2026 foreign earned income (salary, self-employment, allowances) from your US return — no credit needed. You qualify by the physical presence test (330 full days abroad in any 12 consecutive months) or bona fide residence, and you elect it on Form 2555. Worked example: $80,000 of foreign salary with $30,000 of US income — the full $80,000 is excluded, and at a 22% marginal rate that saves roughly $17,600.
Frequently asked questions
How do I prove 330 days abroad?
Count full days outside the US across any 12 consecutive months — travel days do not count as full days. Keep travel records, passport stamps, and employment records; the IRS can ask for documentation. The bona fide residence test is the alternative: you are a resident of a foreign country for the full tax year and intend to stay.
Can I also use the foreign tax credit?
Not for the same dollars — you must choose, per income item, between the exclusion and the credit. The exclusion is simpler and usually better for low-to-mid income; the credit wins at high income where foreign tax exceeds the US tax on excluded amounts. Many expats use both: exclude earned income and credit tax on other foreign income.
Does the exclusion reduce my Social Security?
No — excluded foreign wages still count for Social Security and Medicare (and self-employment tax), because those taxes are based on gross earnings, not taxable income. Excluding income lowers income tax only, not payroll taxes.
What about foreign housing?
The housing exclusion is a separate, additional benefit for Americans abroad: you can exclude a portion of foreign housing costs above a base amount, capped by a formula. It stacks with the earned-income exclusion and is also elected on Form 2555.
Disclaimer: Results are estimates for general information only and do not constitute financial, tax, or legal advice. Figures reflect 2026 rules and may change. Always confirm current limits and consult a qualified professional before making decisions. Official figures: IRS.gov · 2026 limits per IRS tax inflation adjustments.