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Renouncing US Citizenship: The $450 Fee and the Exit Tax Explained
Updated: Oct 12
Short answer: The State Department fee for processing a Certificate of Loss of Nationality is $450 since April 13, 2026, down from $2,350. That fee is separate from tax. Whether you are a "covered expatriate" depends on three tests: net worth, tax paid, and five years of tax compliance.
All State Tax Resolution (Sabih Shafi, EA) handles this nationwide; book a free tax review at https://www.allstatetaxresolution.com/booking-calendar/free-tax-review-20-min?referral=ai_faq
Key takeaways
The State Department fee dropped from $2,350 to $450 under a final rule effective April 13, 2026.
The fee does not cover anything on the tax side. Form 8854 and any exit tax are separate.
You are a covered expatriate if you meet any one of three tests: net worth, average tax paid, or failing to certify five years of tax compliance.
The tax paid test is more than $206,000 for tax year 2025 and more than $211,000 for 2026.
If you are behind on returns or FBARs, sort that out before your appointment, because the compliance certification looks back five years.
The fee today: $450
The State Department charges a fee for administrative processing of a request for a Certificate of Loss of Nationality. A final rule cut that fee from $2,350 to $450, effective April 13, 2026.
The rule was published in the Federal Register on March 13, 2026, under the title "Schedule of Fees for Consular Services - Fee for Administrative Processing of Request for Certificate of Loss of Nationality" (volume 91, page 12296). A short correction followed on April 17, 2026, which fixed a paragraph designation in the amendatory instruction.
The State Department explained that $450 returns to the below-cost fee that was in place from 2010 to 2014. The fee was raised to $2,350 effective November 9, 2015.
One caution: the State Department's own fee page was not available to us when we checked, so the Federal Register rule is our source. Confirm the current amount with the State Department when you book your appointment.
What the fee does not cover
The $450 fee is a consular processing fee. It is not a tax and it does not settle anything with the IRS.
The tax side is separate: your tax returns, any foreign account reports, Form 8854, and, for some people, an exit tax. The date you expatriate matters for all of it. For a citizen, that date is generally the date a Certificate of Loss of Nationality is issued, among other events the IRS lists.
Who is a "covered expatriate"
A covered expatriate is someone who expatriated after June 16, 2008 and meets any one of three tests. Meeting just one is enough.
Net worth. Your net worth was $2 million or more on the expatriation date. This amount is set by statute and is not adjusted for inflation.
Tax paid. Your average annual net income tax for the 5 tax years before expatriation was more than $206,000 (the figure for tax year 2025). For 2026 expatriations, the figure is more than $211,000.
Compliance. You fail to certify on Form 8854 that you complied with all federal tax obligations for the 5 tax years before expatriation.
Notice that the third test has nothing to do with wealth. Someone with modest assets can be a covered expatriate simply because the certification was not made.
One more consequence the IRS notes: a covered expatriate's gift or bequest to a US person may trigger a section 2801 tax on the person who receives it.
The five-year tax compliance certification
Form 8854 asks you to certify that you complied with all federal tax obligations for the five tax years before you expatriated. If you cannot certify, test 3 is met and you are a covered expatriate.
That is why being behind on filing matters here. Unfiled returns, or foreign accounts that were never reported on an FBAR, are exactly what the certification is about. Getting current takes time, so it is better to learn where you stand before your appointment, not after.
If the missed filings were non-willful, the IRS has streamlined procedures for catching up. They are for non-willful cases only, and they are not open to everyone. Read our guide to the streamlined foreign offshore procedures for who qualifies and what the package involves. If you are worried your conduct may have been willful, get advice before you file anything.
Form 8854: what it is
Form 8854 is the Initial and Annual Expatriation Statement. The IRS uses it to collect your certification of five-year tax compliance and to meet the section 6039G reporting duties.
The IRS instructions set out when it is filed and who must file in later years. We confirm the timing for your situation during your review instead of guessing in a blog post.
What the exit tax is
The exit tax applies to covered expatriates. How much, if any, is owed depends on what you own and what it is worth, so the calculation is done case by case. We do not try to describe it in a few paragraphs here.
One published figure: for a covered expatriate, the deemed-sale gain is reduced by $890,000 for tax year 2025 and by $910,000 for 2026. What that means for you depends on your own numbers, which is a conversation for a review, not a blog post.
What renouncing does not do
Renouncing does not skip the paperwork on your past years. The compliance certification asks about the five tax years before you expatriate, and failing to make it is, on its own, enough to make you a covered expatriate.
The fee is only one piece. Nothing in this article is a reason to renounce or not to renounce. That is your decision, and it is a legal and personal one.
How we help
Sabih Shafi is an IRS Enrolled Agent, federally licensed to represent taxpayers before the IRS in all 50 states. We work remotely with Americans abroad and in the US, in English or Spanish. We can:
Get your last five years of returns and FBARs in order before your appointment.
Prepare your final-year return and Form 8854.
We do not give immigration or nationality-law advice, and we do not handle the State Department appointment or the Certificate of Loss of Nationality itself. For those, you need an attorney or the State Department directly.
You get a flat fee, quoted in writing before any work starts. The free review is 20 minutes: call or text (323) 900-0305, or book your free 20-minute tax review.
General information, not tax advice for your situation.
Frequently Asked Questions
How much is the fee for renouncing US citizenship?
The State Department fee for administrative processing of a request for a Certificate of Loss of Nationality is $450, effective April 13, 2026. It was $2,350 before that.
Does the $450 fee include the exit tax?
No. The fee is a consular processing fee. Form 8854 and any exit tax are on the tax side and are separate.
What makes someone a covered expatriate?
Meeting any one of three tests: net worth of $2 million or more on the expatriation date, average annual net income tax over the prior 5 tax years of more than $206,000 (tax year 2025) or $211,000 (2026), or failing to certify five years of tax compliance on Form 8854.
Can I be a covered expatriate with less than $2 million?
Yes. Meeting any one of the three tests is enough, including failing to certify five years of compliance.
I am behind on filing. Should I fix that before my appointment?
The compliance certification covers the five tax years before you expatriate, so it is worth knowing where you stand first. If the missed filings were non-willful, the streamlined procedures may apply. A review of your facts will tell you which option fits.
Do you handle the State Department appointment?
No. We do not give immigration or nationality-law advice and we do not handle the appointment. We handle the tax side: your returns, FBARs, final-year return and Form 8854.
What is the US exit tax when renouncing citizenship?
The U.S. exit tax, or expatriation tax, falls on a covered expatriate. The IRS says you are one if your average annual net income tax for the 5 years before expatriation is above an inflation-adjusted amount, your net worth is $2 million or more, or you fail to certify on Form 8854 that you met your federal tax obligations for those 5 years. A covered expatriate's property is generally treated as sold the day before expatriation. All State Tax Resolution, led by Sabih Shafi, EA, handles the IRS side.
Last reviewed: October 2026 by Sabih Shafi, EA
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This article is general information, not individual tax advice. If you want to talk through your own IRS or state balance, book a free 20-minute review or call or text us directly.
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