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United States tax

Tax residence: At least 31 days in Current calendar year. Special regime for new residents: Foreign earned income exclusion and housing exclusion.

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Tax residence

Special regimes for new residents

Special regime

Foreign earned income exclusion and housing exclusion (Form 2555)

Tax relief

Details
  • On: Foreign earned income (wages and self-employment income earned abroad)
  • Who: Tax home in a foreign country and foreign earned income
  • Limit: $133k/yr

Qualifying U.S. citizens and resident aliens living abroad can exclude foreign earned income up to USD 132,900 for tax year 2026, plus a housing exclusion or deduction; the rest remains taxed at ordinary rates. 3 4

Taxed on

Foreign earned income (wages and self-employment income earned abroad)

Who it applies to

  • Tax home in a foreign country and foreign earned income.
  • Meet the bona fide residence test (uninterrupted period including a full tax year), or the physical presence test of 330 full days in any 12 consecutive months.
  • Resident aliens qualify under the bona fide residence test only if citizens or nationals of a treaty country.

Exclusions

  • Self-employment tax is not reduced by the exclusion.
  • Meals and lodging provided by the employer are handled separately.

Limits

  • $132,900 a year · Maximum foreign earned income exclusion for taxable years beginning in 2026.

Days in the country

  • At least 330 days in Any 12 consecutive months · Full days physically present in a foreign country for the physical presence test.

Tax residence

The exclusion applies to U.S. citizens and resident aliens who live abroad; it does not exempt them from filing.

Visas

Not a visa-linked regime; relevant to U.S. persons relocating out of the United States.

Other taxes

The exclusion amount is indexed each year; the 2026 figure is from Rev. Proc. 2025-32.

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Standard rules and foreign-source income

Standard rules

U.S. taxation of citizens and resident aliens on worldwide income

Worldwide income

Details
  • On: Worldwide income (residents)
  • Who: U.S. citizens and resident aliens report worldwide income

U.S. citizens and resident aliens are taxed on worldwide income at the graduated rates that apply to citizens; non-residents are taxed on U.S.-source income under Form 1040-NR rules. 1 2

Taxed on

Worldwide income (residents); U.S.-source income (non-residents)

Who it applies to

  • U.S. citizens and resident aliens report worldwide income, including foreign-source income, on a U.S. return.
  • Lawful permanent residents and persons meeting the substantial presence test are resident aliens.

Exclusions

  • Non-resident aliens are taxed on U.S.-source income only, at rates and exemptions that vary by treaty.

Tax residence

Resident status follows the green card test or the substantial presence test; treaty tie-breaker rules apply to dual residents who file Form 1040-NR with Form 8833.

Visas

Green card holders, including EB-5, Gold Card and employment-based immigrants, are residents for tax from the start of residence; nonimmigrant visa holders become residents if they meet the substantial presence test.

Other taxes

Many U.S. states tax residents separately and some do not follow treaties; state taxes and payroll (FICA) taxes are separate and are not covered in this record.

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Standard rules

Substantial presence test for U.S. tax residence

Worldwide income

Details
  • On: Residence status (determines worldwide versus U.S.-source income)

A non-citizen is a U.S. tax resident for the year when present at least 31 days in the year and at least 183 days over a weighted three-year count. 5

Taxed on

Residence status (determines worldwide versus U.S.-source income)

Who it applies to

  • Count all days in the current year, one third of days in the prior year and one sixth of days in the second prior year.

Exclusions

  • Days as an exempt individual (certain F, J, M, Q students, teachers and trainees complying with visa terms) and other listed days are not counted.

Days in the country

  • At least 31 days in Current calendar year · Minimum days of presence in the current year.
  • At least 183 days in Current year plus two preceding years (weighted 1, 1/3, 1/6) · Weighted days of presence over the three-year period.

Tax residence

Meeting the test makes the person a resident alien for the year unless a treaty or closer-connection rule applies.

Visas

Applies to nonimmigrant visa holders such as H-1B, L-1, O-1 and E-2; green card holders are residents without the test.

Other taxes

Publication 519 details excluded days and the closer-connection exception.

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Standard rules

U.S. income tax treaties

Worldwide income

Details
  • On: U.S.-source income of treaty residents
  • Who: Treaty residence is decided by the applicable treaty

Treaties generally reduce U.S. tax for residents of treaty countries on certain U.S.-source income; U.S. citizens and treaty residents remain taxed on worldwide income with limited exceptions. 2

Taxed on

U.S.-source income of treaty residents; foreign taxes via credits

Who it applies to

  • Treaty residence is decided by the applicable treaty; dual residents claim treaty benefits by filing Form 1040-NR with Form 8833.

Exclusions

  • Treaties do not generally reduce U.S. tax on U.S. citizens or U.S. treaty residents.

Tax residence

Dual-resident tie-breakers are in each treaty.

Visas

Independent of visa status; relevant to avoiding double taxation for foreign-source income of persons relocating.

Other taxes

Some states do not honour treaties.

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Standard rules

United States: resident aliens taxed on worldwide income

Worldwide income

Details
  • On: Worldwide income of resident aliens, taxed under the same rate schedules as citizens
  • Who: Green Card Test: admitted as or changing status to lawful permanent resident

U.S. residents, including resident aliens, are taxed on worldwide income on the same graduated rates as U.S. citizens; an individual is a U.S. tax resident if admitted as a lawful permanent resident (Green Card Test) or if present at least 31 days in the current year and 183 weighted days over three years (current year days plus one-third of prior year plus one-sixth of the second prior year). 6 5 7

Taxed on

Worldwide income of resident aliens, taxed under the same rate schedules as citizens; nonresidents are taxed only on U.S.-source income and income effectively connected with a U.S. trade or business.

Who it applies to

  • Green Card Test: admitted as or changing status to lawful permanent resident.
  • Substantial Presence Test: at least 31 days in the current year and 183 days in the three-year weighted count.

Exclusions

  • Nonresident aliens are taxed only on U.S.-source and effectively connected income (IRS).
  • Certain exceptions and treaty tie-breaker elections may override the tests (IRS).

Days in the country

  • At least 31 days in current calendar year · Substantial Presence Test first condition: present at least 31 days in the current year
  • At least 183 days in current year plus two preceding years (weighted) · Substantial Presence Test second condition: current-year days plus 1/3 of prior-year days plus 1/6 of days in the second prior year

Tax residence

Even an undocumented individual who meets the Substantial Presence Test is treated as a U.S. resident for tax purposes; the test is applied by calendar year.

Visas

Green card holders are residents from the date admitted as a lawful permanent resident; non-immigrant visa holders become residents only if they meet the Substantial Presence Test and no exception applies.

Other taxes

Resident aliens use the same filing statuses, deductions and credits as citizens; state and local income taxes are separate.

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VAT, social security and other taxes

Questions people ask

When do you become a tax resident in United States?

At least 31 days in Current calendar year (Minimum days of presence in the current year); At least 183 days in current year plus two preceding years (weighted) (Substantial Presence Test second condition: current-year days plus 1/3 of prior-year days plus 1/6 of days in the second prior year); At least 330 days in Any 12 consecutive months (Full days physically present in a foreign country for the physical presence test). Resident status follows the green card test or the substantial presence test; treaty tie-breaker rules apply to dual residents who file Form 1040-NR with Form 8833.

Who qualifies for Foreign earned income exclusion and housing exclusion?

Tax home in a foreign country and foreign earned income. Not a visa-linked regime; relevant to U.S.

≈ USD figures are approximate: daily reference rates from ExchangeRate-API, dated 12 Oct 2026, refreshed when the site is updated.

Sources (7)

Official sources

  1. Taxation of resident aliens · Internal Revenue Service · checked 2026-10-10
  2. Tax treaties · Internal Revenue Service · checked 2026-10-10
  3. Foreign earned income exclusion · Internal Revenue Service · checked 2026-10-10
  4. Rev. Proc. 2025-32 (2026 inflation adjustments) · Internal Revenue Service · checked 2026-10-10
  5. Substantial presence test · Internal Revenue Service · checked 2026-10-10
  6. Introduction to residency under U.S. tax law · Internal Revenue Service · checked 2026-10-10
  7. Taxation of resident aliens · Internal Revenue Service · checked 2026-10-10