US Exit Tax Thresholds (2026)
For 2026, you are a covered expatriate if your net worth is $2,000,000 or more, or your average annual income tax over the prior five years exceeds $211,000, or you cannot certify five years of tax compliance. The mark-to-market gain exclusion is $910,000, and the renunciation fee is $450.
This page collects every current exit tax figure with prior years for context. Each number is sourced to the IRS or the Federal Register; see sources. For what they mean, start with the covered expatriate tests.
The figures at a glance (2026)
| Figure | 2026 | Indexed? |
|---|---|---|
| Net worth test | $2,000,000 | No (fixed since 2008) |
| Income tax test (5-yr avg) | $211,000 | Yes |
| Mark-to-market gain exclusion | $910,000 | Yes |
| Renunciation fee | $450 | Set by State Dept |
| Form 8854 failure penalty | $10,000 | No |
Income threshold by year
| Year | Income tax threshold |
|---|---|
| 2021 | $172,000 |
| 2022 | $178,000 |
| 2023 | $190,000 |
| 2024 | $201,000 |
| 2025 | $206,000 |
| 2026 | $211,000 |
Gain exclusion by year
| Year | Mark-to-market exclusion |
|---|---|
| 2024 | $866,000 |
| 2025 | $890,000 |
| 2026 | $910,000 |
Two things people get wrong
First, the net-worth figure is not inflation-adjusted, so ordinary asset growth pushes more people over $2,000,000 each year. Second, the income test measures tax paid, not income earned, so the $211,000 line corresponds to a far higher income. Check your status against all three in the calculator.
Sources: IRS Form 8854 instructions; Rev. Proc. 2025-32; Federal Register fee schedule. Cross-checked against The Tax Adviser and taxesforexpats. See sources.