US citizens working abroad can exclude up to ~$134,000 in 2026 foreign earned income from US taxation using the FEIE. Calculate your exclusion and FBAR filing trigger below.
Digital Nomad Tax Inputs
How to Calculate Digital Nomad Tax Obligations
This digital nomad tax calculator helps US citizens working remotely abroad estimate their FEIE benefit and FBAR obligations for 2025/2026.
Physical Presence vs Bona Fide Residence
Physical Presence Test: be outside the US for 330 full days in any consecutive 12-month period (not necessarily a calendar year). Bona Fide Residence Test: be a bona fide resident of a foreign country for an uninterrupted period covering a full tax year. Nomads moving between countries typically use the Physical Presence Test.
Self-Employment Tax Trap
The FEIE excludes income from US income tax but NOT from self-employment tax. If you earn $100,000 as a freelancer abroad, the FEIE zeros out your income tax, but you still owe 15.3% SE tax on the first $168,600 (approximately). This surprises many first-year nomads expecting a zero US tax bill.
FBAR: Don't Miss This Filing
FBAR penalties are draconian — up to $10,000 per violation for non-willful, much more for willful. If your foreign bank accounts held even $10,001 at any single point during the year, you must file. File online at the FinCEN BSA E-Filing system by April 15 (auto-extended to October 15, no action needed).
Frequently Asked Questions
Do US digital nomads have to pay US taxes?
Yes. The US taxes citizens on worldwide income regardless of where they live or work. However, several provisions can eliminate or reduce double taxation: the Foreign Earned Income Exclusion (FEIE), Foreign Tax Credit (FTC), and tax treaties. Many digital nomads can eliminate US income tax on foreign-earned income through the FEIE.
What is the 2025/2026 FEIE limit?
The FEIE limit is $126,500 for 2024, approximately $130,000 for 2025, and approximately $134,000 for 2026 (indexed for inflation annually). This is the maximum amount of foreign earned income you can exclude from US taxable income. Self-employment income excluded from income tax is still subject to self-employment tax.
What qualifies for the Foreign Earned Income Exclusion?
You must have foreign earned income (wages, self-employment income for work performed outside the US), a tax home in a foreign country, and meet either the bona fide residence test (full tax year resident of foreign country) or physical presence test (330 full days outside the US in any 12-month period).
What is FBAR?
FBAR (FinCEN Form 114) is required if you had a financial interest in or signature authority over foreign accounts with a combined value exceeding $10,000 at any time during the year. File online at BSA E-Filing System by April 15 (automatic extension to October 15). Failure to file can result in severe penalties.
Is this calculator free?
Yes, completely free with no signup required. For educational purposes only — US expat taxes are complex. Consult a US expat tax specialist (CPA licensed in both countries) for your specific situation.