Renouncing US citizenship is a formal legal act. You appear in person at a US embassy or consulate abroad, swear an oath of renunciation before a consular officer, and wait for the State Department to approve a Certificate of Loss of Nationality. It cannot be done from inside the United States in normal circumstances, and it cannot be undone.
The government fee is now much lower. A final rule published on March 13, 2026 cut the State Department charge from $2,350 to $450, effective April 13, 2026. The larger costs are usually elsewhere: getting five years of tax filings in order, professional fees, and, for some people, the expatriation tax. This guide covers each step and the numbers that apply in 2026.
Key takeaways
- The State Department fee is $450 from April 13, 2026, down from $2,350.
- Renunciation takes place abroad, in person, before a US consular officer, and is irrevocable.
- You need another nationality first, or you risk becoming stateless.
- You must file Form 8854 and certify five years of tax compliance; failing that test alone makes you a "covered expatriate."
- Covered expatriates are taxed as if they sold everything the day before expatriating, with $910,000 of gain excluded for 2026.
Renunciation vs relinquishment
US law gives two main ways to lose citizenship voluntarily. Renunciation, under section 349(a)(5) of the Immigration and Nationality Act, is the formal oath before a consular officer. Relinquishment means performing another "expatriating act," such as becoming a naturalized citizen of another country, with the intention of giving up US citizenship, and then documenting that intent.
Relinquishment is harder to prove because intent at the time of the act is the key question. Most people who want certainty use renunciation. Both routes end with a Certificate of Loss of Nationality (CLN), and the CLN is what the IRS and banks generally ask to see.
Before you book: three things to settle
Another nationality. The State Department will warn you that renouncing without another citizenship can leave you stateless, which can make travel, work and residence very difficult. Most people secure a second passport first. Our guides to how to get a second passport and countries that allow dual citizenship cover the main routes.
Five years of tax compliance. The IRS expatriation rules ask you to certify, under penalty of perjury, that you complied with all federal tax obligations for the five tax years before you expatriate. If you cannot certify, you are a covered expatriate regardless of your wealth or income. People who have never filed often catch up first.
Your asset position. Net worth and past tax bills decide whether the exit tax applies, so it helps to have valuations ready before the appointment date, which becomes your expatriation date if the CLN is approved.
The renunciation process step by step
- Contact a US embassy or consulate abroad. Each post has its own booking system and waiting time, which can range from weeks to many months.
- Complete the State Department forms. These include Form DS-4079, the request for a determination of possible loss of US citizenship, and a statement of understanding that sets out the consequences, such as not passing US citizenship to children born afterward.
- Attend the interview or interviews. A consular officer confirms that you are acting voluntarily and understand the consequences. Some posts hold two meetings.
- Pay the fee. The fee is $450 for appointments on or after April 13, 2026.
- Take the oath. The oath of renunciation must be taken before a US diplomatic or consular officer, as set out in the Foreign Affairs Manual.
- Wait for approval. The file goes to the State Department in Washington. If approved, you receive the CLN, which records the date of your oath as the date of loss.
- File your final US tax return and Form 8854. For the year of expatriation you generally file a dual-status return and attach Form 8854.
What renouncing costs in 2026
PBS NewsHour reported that the cut followed years of lawsuits by groups representing Americans abroad, one of which argues there should be no fee at all. The new amount matches the $450 charged when the fee was first introduced in 2010.
| Cost item | Typical range in 2026 |
|---|---|
| State Department CLN fee | $450 (was $2,350 before April 13, 2026) |
| Catch-up tax filings and FBARs | From a few hundred dollars to several thousand, depending on complexity |
| Exit tax advice and valuations | Higher for people near or above the covered expatriate thresholds |
| Travel to a consulate | Depends on where you live and which post has availability |
| Expatriation tax | Only for covered expatriates with gains above the exclusion |
| Penalty for not filing Form 8854 | $10,000 per year when the form is required |
The expatriation tax under section 877A
The IRS expatriation tax page sets out three tests. You are a covered expatriate if any one applies on your expatriation date:
- Income tax test: your average annual net income tax for the five prior years is more than $211,000 for 2026 expatriations.
- Net worth test: your net worth is $2 million or more. This figure is not indexed for inflation.
- Certification test: you fail to certify five years of tax compliance on Form 8854.
There are narrow exceptions to the first two tests. According to the Form 8854 instructions, they cover people who were born with US and another citizenship, still hold and are taxed as residents of that other country, and lived in the US for no more than 10 of the last 15 years. A separate exception covers people who renounce before age 18½ and were US resident for no more than 10 tax years. Neither exception removes the need to certify compliance.
How the tax is calculated
For a covered expatriate, all property is treated as sold at fair market value on the day before the expatriation date. Net gain is then reduced by an exclusion amount, which is $910,000 for 2026 under Revenue Procedure 2025-32. Gain above that is taxed in the normal way.
Some assets are treated differently:
- IRAs and similar accounts (including HSAs and 529 plans) are treated as fully distributed the day before expatriation and taxed as income.
- Deferred compensation from a US payor can be "eligible," with 30% withholding on later payments, or "ineligible," with its present value taxed at once.
- Interests in non-grantor trusts face 30% withholding on later distributions.
Tax on the deemed sale can be deferred if you elect to do so and give adequate security.
A tax on Americans who receive gifts from you later
The exit tax has a second part. US citizens and residents who receive gifts or inheritances from a covered expatriate pay a special tax under section 2801 at the top gift and estate tax rate. For 2026, it applies above $19,000 of covered gifts received in the year. This can matter more than the exit tax itself for families who stay in the US.
Relief for some people who never filed
The IRS runs relief procedures for certain former citizens. They apply to people who renounced after March 18, 2010, have no US filing history, had net worth under $2 million, and owed $25,000 or less in total tax over the expatriation year and the five years before. Failures must have been non-willful. Eligible people file the six years of returns and Form 8854 and pay no tax or penalties under the program.
Life after renouncing
Renouncing ends citizenship, not every US tie:
- US-source income can still be taxed, usually by withholding, because you become a nonresident alien.
- Visiting the US requires a visa or ESTA travel authorization, like any other foreign national. A 1996 provision known as the Reed Amendment allows entry to be refused to people found to have renounced to avoid tax.
- Public record: the IRS publishes the names of people who expatriated each quarter in the Federal Register.
- Children born after your renunciation do not get US citizenship through you.
- Old tax debts survive renunciation.
Coming back is not simple. Former citizens who want to return generally have to qualify for a visa or green card like anyone else and then naturalize.
Many people who think about renouncing are reacting to the cost of citizenship-based taxation and reporting rules such as FBAR and FATCA. Others only want a second passport as a backup, which does not require giving up US citizenship. Our list of the best second passports compares options.
Frequently asked questions
How much does it cost to renounce US citizenship in 2026?
The State Department fee is $450 for appointments from April 13, 2026. Total costs are usually higher once you add tax preparation, any catch-up filings and professional advice, and they can include the expatriation tax for covered expatriates.
Can I renounce US citizenship from inside the United States?
In normal circumstances, no. Renunciation under section 349(a)(5) must take place before a US diplomatic or consular officer in a foreign country.
Do I have to file taxes after renouncing?
You file a final return for the year of expatriation with Form 8854. After that, you file only as a nonresident if you have US-source income that requires it, or annual Form 8854 statements if you deferred tax or hold certain deferred compensation or trust interests.
How long does the process take?
It depends on the consulate. Waiting times for an appointment vary widely by post, and CLN approval from Washington can take several more months.
Will I have to pay the exit tax?
Only if you are a covered expatriate and your net gain on the deemed sale exceeds the exclusion, or if you hold IRAs, deferred compensation or trust interests that are taxed under separate rules. Many people who renounce are not covered expatriates.
Important: This article is general information, not tax, legal or financial advice. Rules change often and depend on your personal circumstances. Speak with a qualified professional in each relevant country before you act.