Expat Housing Allowance Section 911 Calculator 2026
Calculate your 2026 foreign housing exclusion under IRC §911 and IRS Publication 54. Enter your foreign housing costs, base amount, city tier, and qualifying days abroad to see the excluded housing amount and any taxable remainder.
How the IRC §911 Foreign Housing Exclusion Works in 2026
U.S. citizens and resident aliens working abroad can exclude foreign housing costs that exceed the "base housing amount" from their U.S. taxable income under IRC §911. For 2026, the FEIE is $130,000 and the annual base housing amount is 16% of $130,000 = $20,800 (prorated for days abroad). The base amount represents what the IRS assumes a U.S.-based worker spends on housing domestically. Housing costs above the base — up to the city-specific ceiling — are excludable. This is in addition to the $130,000 FEIE. Claim on IRS Form 2555. Source: IRC §911; IRS Publication 54. Last updated: May 2026.
Base Amount, City Ceiling, and What Gets Excluded
| Amount Range | Tax Treatment |
|---|---|
| First $20,800 of housing costs (base amount) | Not excludable — covered by normal income/deductions |
| $20,801 to city ceiling (standard: $35,360; London: $105,900) | EXCLUDABLE under §911 housing exclusion |
| Above city ceiling | Taxable — included in income, no exclusion available |
Qualifying for the Housing Exclusion and What Costs Count
To qualify for the §911 housing exclusion, you must meet either the bona fide residence test (a full tax year as a bona fide resident of a foreign country) or the physical presence test (330 full days in a foreign country within any 12-month period). Qualifying housing expenses include: rent, utilities (electricity, gas, water — but not telephone/internet), household insurance, residential parking fees, and furniture rental. Non-qualifying expenses include: mortgage principal and interest payments, property taxes, lavish or extravagant costs, and expenses for a second home. Always use IRS Notice (published each spring) for the current year's city-specific ceilings — ceilings are updated annually. Consult a qualified international tax professional for personalized advice. Source: IRS Publication 54, Chapter 4; IRC §911(c).
Frequently Asked Questions
What is the Foreign Earned Income Exclusion (FEIE) for 2026?
The FEIE for 2026 is $130,000 (indexed for inflation). U.S. citizens and resident aliens living abroad who meet either the bona fide residence test or the physical presence test can exclude up to $130,000 of foreign earned income from U.S. federal income tax. Source: IRC §911; IRS Publication 54.
What is the foreign housing exclusion under IRC §911?
The foreign housing exclusion allows qualifying expats to exclude qualified housing expenses above the base housing amount (16% of the FEIE = $20,800 for 2026 at full year) up to the city-specific ceiling. It is separate from and in addition to the FEIE. Claimed on IRS Form 2555.
What is the base housing amount for 2026?
The base housing amount is 16% of the FEIE limit, prorated for days of foreign residence: 16% × $130,000 = $20,800 for a full year. Prorated for partial year: ($20,800 / 365) × qualifying days. Only housing costs above the base qualify for the housing exclusion. Source: IRC §911(c)(1)(B).
What housing expenses qualify for the §911 exclusion?
Qualifying: rent for your foreign residence, utilities (gas, electric, water), household insurance, residential parking fees, furniture rental. Non-qualifying: mortgage payments, property taxes, lavish expenses, expenses for a second home, domestic labor, or your own labor for repairs. Source: IRS Publication 54, Chapter 4.
Is the housing exclusion in addition to the FEIE?
Yes — the foreign housing exclusion is separate from and in addition to the $130,000 FEIE. An expat earning $200,000 can exclude $130,000 via FEIE, then separately exclude qualifying housing costs above the base amount — significantly reducing taxable income. Both claimed on IRS Form 2555.
How does the physical presence test work for §911?
You must be physically present in a foreign country (or countries) for 330 full days in any 12-month period — not necessarily a calendar year. This allows no more than 35 days in the U.S. in the testing period. Days must be documented by passport stamps and travel records. Source: IRC §911(d)(1); IRS Publication 54.