The US exit tax sounds terrifying. For most people, it's $0.
A plain-English guide to expatriation tax under IRC §877A, for citizens renouncing and long-term green-card holders. Find out in 60 seconds whether you are a covered expatriate, then see exactly what you'd owe.
~1 in 15
renunciants who actually owe exit tax
$2,000,000
net-worth trigger
$910,000
2026 gain exclusion
$450
renunciation fee (was $2,350)
Covered Expatriate & Exit Tax Estimator
Will you owe the US exit tax?
01 / Inputs · tax year 2026
02 / Result
Estimate only. Not tax or legal advice. Figures are for tax year 2026 and may change. The State Department renunciation fee is $450 (since April 13, 2026). Confirm with a CPA or tax attorney before acting.
The three covered-expatriate triggers
You only owe the exit tax if you are a covered expatriate. Any one of these makes you covered:
- Net worth test: $2,000,000 or more on your expatriation date. This figure is fixed, not inflation-adjusted.
- Income tax test: your average annual net income tax for the prior 5 years is above the year's threshold (see table). This is tax paid, not income.
- Certification test: you cannot certify on Form 8854 that you complied with all federal tax obligations for the past 5 years. This one makes you covered no matter your wealth.
Key figures by year
| Tax year | Income tax threshold | Gain exclusion |
|---|---|---|
| 2024 | $201,000 | $866,000 |
| 2025 | $206,000 | $890,000 |
| 2026 | $211,000 | $910,000 |
Net-worth trigger fixed at $2,000,000. Sources: IRS Form 8854 instructions, Rev. Proc. 2025-32. See sources.
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US exit tax: quick answers
What is the US exit tax?
The US exit tax (expatriation tax under IRC §877A) is a one-time tax on the unrealized gains of a "covered expatriate" who renounces US citizenship or gives up long-term US residency. Your worldwide property is treated as sold the day before you leave, and gain above the year's exclusion is taxed.
Who actually has to pay the exit tax?
Only "covered expatriates." You are covered if your net worth is $2 million or more, or your average annual income tax for the prior 5 years exceeds the year's threshold, or you cannot certify 5 years of tax compliance on Form 8854. Roughly 1 in 15 renunciants actually owes the tax.
How much does it cost to renounce US citizenship in 2026?
The State Department renunciation fee is $450, reduced from $2,350 effective April 13, 2026. The exit tax, if any, is separate and depends on whether you are a covered expatriate.
Is the exit tax based on income or net worth?
Either can trigger covered-expatriate status. The income test looks at tax paid (not income earned) averaged over 5 years; the net-worth test is a flat $2 million. Failing to certify tax compliance triggers it regardless of the other two.
Do green card holders pay the exit tax?
Only long-term residents, those who held a green card in 8 of the last 15 tax years. Giving up the card before year 8 generally avoids the exit tax entirely.