--- title: "United States tax for new residents 2026: rates and regimes" url: https://settleanywhere.com/countries/united-states/tax/ lang: en updated: 2026-10-12 --- # 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. Checked against official sources on 12 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## Tax residence - 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. - Meeting the test makes the person a resident alien for the year unless a treaty or closer-connection rule applies. ## 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. (sources 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. Checked against official sources on 12 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## 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. (sources 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. Checked against official sources on 12 Oct 2026 [Change log](https://settleanywhere.com/changes/) 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. (source 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. Checked against official sources on 10 Oct 2026 [Change log](https://settleanywhere.com/changes/) 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. (source 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. Checked against official sources on 10 Oct 2026 [Change log](https://settleanywhere.com/changes/) 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). (sources 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. Checked against official sources on 10 Oct 2026 [Change log](https://settleanywhere.com/changes/) ## VAT, social security and 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. - The exclusion amount is indexed each year; the 2026 figure is from Rev. Proc. 2025-32. - Publication 519 details excluded days and the closer-connection exception. - Some states do not honour treaties. ## 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](https://www.irs.gov/individuals/international-taxpayers/taxation-of-resident-aliens) · Internal Revenue Service · checked 2026-10-10 2. [Tax treaties](https://www.irs.gov/individuals/international-taxpayers/tax-treaties) · Internal Revenue Service · checked 2026-10-10 3. [Foreign earned income exclusion](https://www.irs.gov/individuals/international-taxpayers/foreign-earned-income-exclusion) · Internal Revenue Service · checked 2026-10-10 4. [Rev. Proc. 2025-32 (2026 inflation adjustments)](https://www.irs.gov/pub/irs-drop/rp-25-32.pdf) · Internal Revenue Service · checked 2026-10-10 5. [Substantial presence test](https://www.irs.gov/individuals/international-taxpayers/substantial-presence-test) · Internal Revenue Service · checked 2026-10-10 6. [Introduction to residency under U.S. tax law](https://www.irs.gov/individuals/international-taxpayers/introduction-to-residency-under-us-tax-law) · Internal Revenue Service · checked 2026-10-10 7. [Taxation of resident aliens](https://www.irs.gov/individuals/international-taxpayers/taxation-of-resident-aliens) · Internal Revenue Service · checked 2026-10-10