IRS Announces Updated FEIE Limit for 2026, Nationly Updates Resources
United States, 24th Mar 2026 – The Internal Revenue Service has increased the Foreign Earned Income Exclusion (FEIE) limit to $132,900 per qualifying taxpayer for the 2026 tax year, reflecting the latest round of inflation adjustments that affect Americans living and working abroad. According to Nationly, the location-tracking app for digital nomads and American expats, this change allows eligible U.S. citizens and resident aliens abroad to exclude more of their foreign salary, bonus and self-employment income from U.S. federal income tax when they qualify under the bona fide residence or physical presence tests. American taxpayers can access FEIE savings by filing Form 2555 with their annual return.
The 2026 FEIE cap of $132,900 marks an increase from the 2025 limit of $130,000, continuin...
