How to use this reference
Each card covers the core facts you need to orient yourself — not a complete tax analysis. Local tax rates are the top marginal rate on earned income. "FEIE eligible" means U.S. expats can generally use the Foreign Earned Income Exclusion if they meet Physical Presence or Bona Fide Residence requirements. "U.S. treaty" indicates whether a formal income tax treaty with the U.S. exists. Always read the full country guide and consult a professional for your specific situation.
Yes Applies / available
No Does not apply
Partial Conditional / limited
FBAR and FATCA apply regardless of country
No matter where you live, if your combined foreign account balances exceeded $10,000 at any point during the year, FBAR (FinCEN 114) applies. FATCA (Form 8938) thresholds depend on filing status and whether you live abroad. Both are independent of which country is covered below.
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United Arab Emirates
Middle East · Gulf
Local income tax (earned)0% — no personal income tax
U.S. tax treatyNone
FEIE eligibleYes — physical presence or bona fide residence
FTC useful hereRarely — no local tax to credit
Social security / NINone for foreign workers
⚠ The U.S.–UAE has no income tax treaty. FEIE is typically the right strategy. Self-employment tax still applies to U.S. citizens — the UAE's zero-income-tax environment does not eliminate SE tax.
Full UAE guide →
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Qatar
Middle East · Gulf
Local income tax (earned)0% — no personal income tax
U.S. tax treatyNone
FEIE eligibleYes
FTC useful hereRarely — no local tax to credit
Social security / NINone for expatriates
Very similar tax profile to UAE. No treaty, no local tax — FEIE eliminates most or all U.S. tax on earned income up to the exclusion limit. Contractor income (W-9/1099 equivalent) still triggers SE tax.
Full Qatar guide →
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India
South Asia
Local income tax (earned)Up to 30% + surcharge (new regime: up to 30%)
U.S. tax treatyYes — U.S.–India DTA (1989)
FEIE eligibleYes
FTC useful hereOften — high local rates can exceed FEIE benefit
Social securityPF/EPF contributions — no totalization agreement
⚠ India taxes residents on worldwide income. High earners may find FTC more beneficial than FEIE. No U.S.–India totalization agreement means potential double Social Security contributions for employees.
Full India guide →
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Singapore
Southeast Asia
Local income tax (earned)Up to 24% (progressive)
U.S. tax treatyNone
FEIE eligibleYes
FTC useful hereSometimes — depends on income level
Social security (CPF)Only for Singapore Citizens and PRs — not for most foreign expats on EP
No treaty but relatively favorable rates. FEIE often covers expat income entirely. Employment Pass holders typically exempt from CPF contributions, which simplifies the picture considerably.
Full Singapore guide →
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Philippines
Southeast Asia
Local income tax (earned)Up to 35%
U.S. tax treatyYes — U.S.–Philippines treaty (1982)
FEIE eligibleYes
FTC useful hereOften — rates comparable to U.S.
SSS contributionsRequired for locally employed foreign workers
Many 🇺🇸 Americans in the Philippines are retirees on pension income — different rules apply. Earned income from local employment triggers both local tax and potential FTC analysis. Treaty provides tie-breaker residency rules.
Full Philippines guide →
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Thailand
Southeast Asia
Local income tax (earned)Up to 35%
U.S. tax treatyYes — U.S.–Thailand treaty (1996)
FEIE eligibleYes
FTC useful hereOften
Social securitySSO — foreign workers in formal employment contribute
⚠ As of 2024, Thailand changed its rules on remitted foreign income — income brought into Thailand may now be taxable in the same year it was earned. Affects expats with offshore income.
Full Thailand guide →
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Japan
East Asia
Local income tax (earned)Up to 45% national + 10% local = ~55%
U.S. tax treatyYes — U.S.–Japan treaty (2003)
FEIE eligibleYes
FTC useful hereVery often — very high combined rates
Social insurance (Shakai Hoken)Mandatory for most employed residents — U.S.–Japan totalization agreement applies
⚠ Japan has the highest effective tax rates in this list. FTC is nearly always the better strategy for employees. The totalization agreement prevents double Social Security contributions — critical for U.S. employees on assignment.
Full Japan guide →
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South Korea
East Asia
Local income tax (earned)Up to 45% national + ~3% local surtax
U.S. tax treatyYes — U.S.–Korea treaty (1979, updated)
FEIE eligibleYes
FTC useful hereVery often
National Pension (NPS)Totalization agreement with U.S. — prevents double contributions
Similar profile to Japan — very high rates make FTC the preferred strategy for most employees. Totalization agreement covers National Pension. Military personnel stationed in Korea: separate rules under SOFA.
Full South Korea guide →
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Germany
Western Europe
Local income tax (earned)Up to 45% + 5.5% solidarity surtax on tax
U.S. tax treatyYes — U.S.–Germany treaty (1989, amended 2006)
FEIE eligibleYes
FTC useful hereVery often
Social security (DRV)Totalization agreement with U.S. — no double contributions
High local rates mean FTC typically wins over FEIE for W-2 employees. German Kirchensteuer (church tax) is not creditable against U.S. tax. Freelancers on Freiberufler or Gewerbetreibender status face additional Gewerbesteuer.
Full Germany guide →
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France
Western Europe
Local income tax (earned)Up to 45% (income tax) + social charges up to 17.2%
U.S. tax treatyYes — U.S.–France treaty (1994, amended 2009)
FEIE eligibleYes
FTC useful hereVery often
Social charges (CSG/CRDS)Totalization agreement — no double U.S./French social security for most expats
⚠ French social charges (CSG/CRDS) have complex creditability status — they may not be fully creditable against U.S. tax. Treaty savings clauses apply. Wealth tax (IFI) may apply to real estate above €1.3M.
Full France guide →
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Spain
Western Europe
Local income tax (earned)Up to 47% national + regional surcharges
U.S. tax treatyYes — U.S.–Spain treaty (1990)
FEIE eligibleYes
FTC useful hereVery often
Social securityTotalization agreement with U.S.
⚠ Beckham Law (régimen especial para impatriados) can reduce Spanish tax for newly arrived foreign workers — but taking it may affect your FEIE eligibility and treaty positions. Worth analyzing carefully before electing it.
Full Spain guide →
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United Kingdom
Western Europe
Local income tax (earned)Up to 45% (additional rate) + 2% NI Employee
U.S. tax treatyYes — U.S.–UK treaty (2001, updated)
FEIE eligibleYes
FTC useful hereVery often — rates comparable to U.S.
National InsuranceTotalization agreement with U.S. — no double contributions
One of the most complex treaty relationships due to the savings clause and pension provisions. The treaty has explicit provisions for pension income. ISAs are not tax-deferred for U.S. purposes — report as PFICs potentially. Remittance basis no longer available from April 2025 for new arrivals.
Full UK guide →
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Australia
Pacific
Local income tax (earned)Up to 45% + 2% Medicare Levy
U.S. tax treatyYes — U.S.–Australia treaty (1982, amended)
FEIE eligibleYes
FTC useful hereVery often
SuperannuationTotalization agreement with U.S. — employer super contributions reportable to IRS
⚠ Australian Superannuation is a common FBAR issue — it's a foreign financial account. Employer contributions may be taxable in the U.S. in the year contributed. Super fund itself may have PFIC reporting implications. Treaty is older and has limited provisions.
Full Australia guide →
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Canada
North America
Local income tax (earned)Up to 33% federal + up to 21% provincial = ~54% combined (varies by province)
U.S. tax treatyYes — U.S.–Canada treaty (1980, 5 protocols)
FEIE eligibleYes
FTC useful hereOften better — high combined rates
CPP / OASTotalization agreement — no double contributions
⚠ RRSP/TFSA: RRSPs are tax-deferred under the treaty (file Form 8891 or treaty disclosure). TFSAs are NOT tax-deferred for U.S. purposes — income is taxable annually. Both are FBAR-reportable accounts.
Full Canada guide →
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Mexico
North America
Local income tax (earned)Up to 35%
U.S. tax treatyYes — U.S.–Mexico treaty (1992, amended 2002)
FEIE eligibleYes
FTC useful hereSometimes — depends on income level and structure
Social security (IMSS)Totalization agreement with U.S.
Many 🇺🇸 Americans in Mexico are self-employed digital nomads or retirees. Temporary Resident visa holders may have Mexican tax obligations if present 183+ days. Treaty provides residency tie-breaker rules. Retirement income (pension/SS) taxed differently under treaty.
Full Mexico guide →
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Israel
Middle East
Local income tax (earned)Up to 50% (47% top rate + 3% high-income surtax)
U.S. tax treatyYes — U.S.–Israel treaty (1975)
FEIE eligibleYes
FTC useful hereVery often — highest rates in this list
National Insurance (Bituach Leumi)No totalization agreement — potential double contributions
⚠ Israel has the highest combined tax burden in this list. FTC is almost always the better strategy. No U.S.–Israel totalization agreement means potential double National Insurance contributions. New immigrant (Oleh) 10-year tax exemption on foreign income significantly changes the calculus for new arrivals.
Full Israel guide →
What this table doesn't cover
Each card above is a starting point. The following situations add complexity regardless of country:
- Self-employment income — U.S. self-employment tax (15.3%) applies on SE income regardless of where you live, unless a totalization agreement provides relief.
- Investment income — dividends, capital gains, and interest are taxed differently than earned income. The FEIE does not apply to investment income.
- Foreign pension accounts — most foreign retirement accounts are reportable (FBAR, FATCA), and some may trigger PFIC rules.
- Housing allowances — the Foreign Housing Exclusion can be added on top of FEIE, but has country-specific limits set by the IRS each year.
- Part-year residence — if you moved during the year, you may have filing obligations in both countries and need to carefully allocate income.
- State taxes — living abroad does not automatically sever your obligation to your last U.S. state of residence. Some states (California, New York, Virginia, South Carolina) are aggressive about claiming continued residency.
This is a reference document, not tax advice
Tax rates and treaty provisions change. The information above reflects the general position as of April 2026 for tax year 2025. Always verify current rates with official sources or a qualified expat tax professional before filing.
Need help deciding FEIE vs FTC for your country?
Document 01 in this kit walks through the decision framework with a per-country verdict table.