Updated October 30, 2026. Quick answer: The foreign earned income exclusion (FEIE) amount for tax year 2026 is $132,900, per IRS Revenue Procedure 2025-32 and section 911(b)(2)(D)(i). It is the most foreign earned income a qualifying individual can exclude from federal income tax. The 2027 amount has its own page, the foreign earned income exclusion for 2027.
The 2026 amount
Revenue Procedure 2025-32 says: “For taxable years beginning in 2026, the foreign earned income exclusion amount under § 911(b)(2)(D)(i) is $132,900.”
| Tax year | Foreign earned income exclusion amount | Source |
|---|---|---|
| 2026 | $132,900 | IRS Revenue Procedure 2025-32 |
What the statute says
Section 911(b)(2)(A) caps the exclusion: “The foreign earned income of an individual which may be excluded under subsection (a)(1) for any taxable year shall not exceed the amount of foreign earned income computed on a daily basis at an annual rate equal to the exclusion amount for the calendar year in which such taxable year begins.”
The statute’s own base figure is stated in dollars and then indexed: “The exclusion amount for any calendar year is $80,000.” The statute adds the rounding rule: “If any increase determined under the preceding sentence is not a multiple of $100, such increase shall be rounded to the next lowest multiple of $100.” The $132,900 above is the published result for 2026.
| Item | Amount | Source |
|---|---|---|
| Exclusion amount for 2026 | $132,900 | Rev. Proc. 2025-32 |
| Base amount written in the statute | $80,000 | 26 U.S.C. 911(b)(2)(D)(i) |
| Rounding multiple for increases | $100 | 26 U.S.C. 911(b)(2)(D)(ii) |
Who qualifies
The exclusion is for a qualified individual. Section 911(d)(1) says the term “means an individual whose tax home is in a foreign country and who is” either a U.S. citizen who is a bona fide resident, or a citizen or resident who “during any period of 12 consecutive months, is present in a foreign country or countries during at least 330 full days in such period.” For a citizen, the residence test requires that the person “has been a bona fide resident of a foreign country or countries for an uninterrupted period which includes an entire taxable year”.
A day-count illustration
Because the cap is figured on a daily basis, the dollar amount can be smaller when the qualifying period covers only part of a year. As a simple illustration (not a tax form worksheet), a person who qualifies for 200 days of a 365-day year (both invented, for the computation) would work from 132,900 times 200 divided by 365, or $72,821.92 (computed). The worksheet in the foreign earned income tax worksheet and the IRS instructions control the actual figure. Whether investment income counts is answered on this page about investment income.
Common mistakes
- Treating the exclusion as automatic for anyone living abroad. The statute requires a tax home in a foreign country and either the bona fide residence test or the 330-day test.
- Counting days within a calendar year by habit. The statute’s test is any period of 12 consecutive months.
- Using 2026 numbers on a 2027 return. The next amount is on its own page.
Related: the foreign earned income exclusion for 2027, Form 2555, IRS Publication 54, and whether the exclusion covers investment income.
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Answer againSources
- Internal Revenue Service, Rev. Proc. 2025-32, tax year 2026 inflation-adjusted amounts, as modified by the One, Big, Beautiful Bill Act: www.irs.gov
- 26 U.S.C. 911, Citizens or residents of the United States living abroad (U.S. Code, 2024 edition, U.S. Government Publishing Office): www.govinfo.gov
Read from the primary documents linked above on October 30, 2026. General information, not tax advice. Your own facts decide the outcome, and a preparer or the IRS itself is the right place to confirm anything consequential.