Estimate expatriate tax liability with foreign income exclusion and credits.
The exclusion removes income from the home tax base up to a cap, and the foreign tax credit then offsets tax on whatever remains. The two generally cannot be claimed on the same income. Whether to claim the exclusion or the credit depends on the relative tax rates, and the choice can bind for several years once made.
Expat Tax
Home tax = (income − exclusion) × rate, reduced by the foreign tax credit
This is a simplified illustration and not tax advice. Expatriate taxation involves residency tests, treaty provisions, social security agreements and filing obligations that vary by country. Consult a qualified cross-border tax adviser.
Home tax = (income − exclusion) × rate, reduced by the foreign tax credit The exclusion removes income from the home tax base up to a cap, and the foreign tax credit then offsets tax on whatever remains. The two generally cannot be claimed on the same income.
Whether to claim the exclusion or the credit depends on the relative tax rates, and the choice can bind for several years once made.
This calculator takes 5 inputs: Foreign earned income, Foreign earned income exclusion limit, Foreign tax already paid, Home country marginal tax rate, Housing exclusion claimed. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.