United States

Federal citizenship-based taxation, residence, 2026 rate schedule, non-residents and FIRPTA, 21% corporate tax, sales taxes, exit tax, estates and gifts, FBAR/FATCA and the France–United States treaty.

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TAX FACTSHEET · 2026-09-26

In this factsheet

Personal and business taxation in the United States

Documentary position as at 26 September 2026. The reference points below concern federal tax; state and local taxes are not transposed. The 2026 amounts derive from the Act of 4 July 2025 (Public Law 119-21) and Revenue Procedure 2025-32; income for 2025 reported in 2026 is distinguished from income for 2026.

1. Identifying the territory, taxpayer and year

1. In the United States, a person's tax liability cannot be derived from a single federal rate. The person must first be classified under the Internal Revenue Code (citizen, resident alien or nonresident alien), then the nature and source of the income must be identified, and finally the state and, where applicable, the local authority that tax it separately. Section 1 of the Code and the federal regulations cover the income of every citizen or resident, and that of a nonresident alien to the extent provided in sections 871(b) and 877(b). S01 S03

2. The federal level and the state level coexist. Section 164 of the Code allows, within certain limits, the deduction of state and local taxes on income, property or sales, which presupposes that those taxes exist in their own right. Their bases, rates and residence rules are a matter for each state and are not described in this factsheet. No federal rate in this factsheet should therefore be read as an overall rate. S31

3. The Act of 4 July 2025, commonly known as the One Big Beautiful Bill Act, made permanent several features of the 2017 reform that were due to expire at the end of 2025, including the rate schedules in section 1(j), the elimination of the personal exemption and the section 199A deduction. It also increased the exclusion amount for estate and gift tax purposes. The IRS published the indexed amounts applicable in 2026 in Revenue Procedure 2025-32. S05 S06 S01 S41 S16 S04

4. The tax year of individuals is, as a rule, the calendar year. For a calendar-year taxpayer, the federal income tax return must be filed no later than 15 April following the close of the year, unless special provisions apply. Income for 2025 was therefore reported in spring 2026; income for 2026, to which the amounts reproduced below apply, will be reported in 2027. S49 S04

2. Individual residence, arrival and departure

5. A US citizen is taxable on worldwide income, wherever he or she resides. The federal regulations state that all citizens, wherever resident, and all resident aliens are liable to income tax, whether or not the income derives from sources within the United States. The IRS points out that the filing and payment rules are generally the same for a citizen living abroad as for a citizen residing in the United States. S03 S48

6. Every person born or naturalised in the United States and subject to its jurisdiction is a citizen; other means of acquiring citizenship are governed by the Immigration and Nationality Act. A person of French nationality may therefore be a US citizen without ever having resided in the United States, in particular by birth on US territory or, under the rules of the Immigration and Nationality Act to which the regulations refer, by descent, and thereby fall within the scope of federal taxation on the basis of citizenship. S03

7. For an alien, section 7701(b) lays down two alternative tests. A person is resident if he or she is a lawful permanent resident at any time during the calendar year (the so-called "green card" test), or if he or she meets the substantial presence test. Lawful permanent resident status presupposes that the privilege of residing permanently as an immigrant has been accorded, so long as that status has not been revoked or administratively or judicially determined to have been abandoned. S02 S43

8. The substantial presence test requires presence on at least 31 days during the calendar year and a total of at least 183 days obtained by adding the days of the current year, one third of the days of the preceding year and one sixth of the days of the second preceding year. Certain days are not counted, in particular those of an "exempt individual" (a category covering certain diplomats, teachers, trainees, students or athletes under the conditions of the statute) and those on which the person was unable to leave the country because of a medical condition that arose while there. S02 S33

9. A person present on fewer than 183 days in the current year may escape the test if he or she establishes a "tax home" in a foreign country and a closer connection to that country than to the United States. This exception is not available to a person who, during the year, had an application for adjustment of status pending or took other steps to obtain lawful permanent resident status. A planned green card application may thus tip the outcome. S02 S33

10. The residency starting date is, for a green card holder who does not meet the presence test, the first day of presence with that status; for a person who meets the presence test, the first day of presence in the year. A first-year election allows, under precise conditions (31 consecutive days and presence on at least 75% of the testing period), treatment as a resident from the year of arrival. The year of arrival or departure may therefore be a dual-status year, subject to restrictions: no standard deduction and, as a rule, no joint return. S02 S32

11. The departure of a resident alien does not automatically end his or her tax residence where the green card is retained. The Code nevertheless provides that a lawful permanent resident ceases to be treated as such if he or she begins to be treated as a resident of a foreign country under a tax treaty, does not waive the benefits of that treaty and notifies the tax authorities. That step may itself be the triggering event for the exit tax in the case of a long-term resident (section 9). S02 S20

3. Federal individual income tax in 2026

12. Federal tax is calculated on taxable income, that is, gross income less allowable deductions, under a progressive schedule specific to each filing status (married couple filing jointly or surviving spouse, head of household, single individual, married individual filing separately). The 2026 schedules are those of section 1(j), made permanent by the 2025 Act, as indexed by Revenue Procedure 2025-32. S01 S04 S06

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2026 taxable income, single individual	2026 taxable income, joint return	Marginal rate	Sources
Up to 12,400 dollars	Up to 24,800 dollars	10%	S04 S01
Over 12,400 and up to 50,400 dollars	Over 24,800 and up to 100,800 dollars	12%	S04 S01
Over 50,400 and up to 105,700 dollars	Over 100,800 and up to 211,400 dollars	22%	S04 S01
Over 105,700 and up to 201,775 dollars	Over 211,400 and up to 403,550 dollars	24%	S04 S01
Over 201,775 and up to 256,225 dollars	Over 403,550 and up to 512,450 dollars	32%	S04 S01
Over 256,225 and up to 640,600 dollars	Over 512,450 and up to 768,700 dollars	35%	S04 S01
Over 640,600 dollars	Over 768,700 dollars	37%	S04 S01

13. The table reproduces the brackets in tables 1 and 3 of Revenue Procedure 2025-32 for taxable years beginning in 2026. Heads of household and married individuals filing separately fall under other tables. The 2025 brackets, applicable to returns filed in 2026, are different and must not be confused with these. S04

14. The 2026 standard deduction is 32,200 dollars for a joint return, 24,150 dollars for a head of household and 16,100 dollars for a single individual or a married individual filing separately. The personal exemption remains at zero, its elimination having been made permanent. The taxpayer may instead itemise deductions where they are higher. S04 S05

15. The deduction for state and local taxes, for a taxpayer who itemises deductions, is capped at 40,400 dollars for years beginning in 2026 (half that amount for a married individual filing separately). This cap is reduced by 30% of the excess of modified adjusted gross income over 505,000 dollars, but cannot fall below 10,000 dollars. The statute provides for an annual increase of 1% until 2029, followed by a return to 10,000 dollars for years beginning after 2029. S31

16. Long-term capital gains and qualified dividends are subject to separate rates of 0%, 15% and 20%. For 2026, the 0% rate applies up to 98,900 dollars of taxable income on a joint return and 49,450 dollars for a single individual; the 15% rate up to 613,700 dollars on a joint return and 545,500 dollars for a single individual. Certain categories, such as the portion of a real estate gain corresponding to depreciation ("unrecaptured section 1250 gain") or certain collectibles, are subject to their own rates. S01 S04

17. In addition, the Net Investment Income Tax of 3.8% applies to the lesser of net investment income and the excess of modified adjusted gross income over 250,000 dollars on a joint return or 200,000 dollars for a single individual. A dividend or a capital gain may thus bear a combined federal rate higher than the section 1(h) rate. S29

18. The alternative minimum tax (AMT) continues to apply. It is calculated at rates of 26% and then 28% on a broader base; for 2026, the exemption is 140,200 dollars on a joint return and 90,100 dollars for a single individual, and the 28% rate applies above 244,500 dollars of taxable excess (122,250 dollars for a married individual filing separately). The taxpayer pays the AMT to the extent that it exceeds the regular tax. S47 S04

19. Sole proprietors and members of pass-through entities may benefit from the section 199A deduction, equal as a rule to 20% of qualified business income, subject to limitations that apply above income thresholds (201,750 dollars in 2026 for most returns, 403,500 dollars on a joint return). The 2025 Act removed the expiry date that had been set for the end of 2025. S41 S04

4. Citizens and residents living abroad: no inbound expatriate regime

20. Federal law contains no general inbound expatriate regime comparable to the European regimes: an alien who becomes resident is taxed on worldwide income under the ordinary rules from his or her residency starting date. The mechanisms relevant to an international clientele operate in the other direction, by mitigating the double taxation of citizens and residents who live outside the United States. S03 S02

21. Section 911 allows a "qualified individual" to exclude part of his or her foreign-source earned income, together with a housing cost amount. A qualified individual is a citizen who is a bona fide resident of a foreign country for an uninterrupted period that includes an entire taxable year, or a citizen or resident who is present in one or more foreign countries for at least 330 full days during a period of 12 consecutive months; a "tax home" abroad is also required. The ceiling on the exclusion is 132,900 dollars for 2026. S30 S04

22. The exclusion covers earned income only; it does not cover dividends, interest or capital gains. For that income, and for earned income in excess of the ceiling, the taxpayer relies on the foreign tax credit under section 901, within the limits of that provision. The choice between the exclusion and the credit, and its effects on subsequent years, must be examined case by case. S30 S45

23. A citizen residing in the United Arab Emirates, a country that does not tax the income of individuals, generally cannot credit any foreign tax against his or her investment income: the federal liability on that income then remains in full. This consequence follows from the combination of citizenship-based taxation and the credit, which presupposes that foreign tax has been paid; it must be verified against the income actually received. S03 S45

5. Non-residents and US-source income

24. A nonresident alien is taxable only on US-source income and on income effectively connected with a trade or business in the United States. Two regimes coexist. Fixed or determinable annual or periodical income (known as "FDAP": interest, dividends, rents, royalties, salaries and other compensation) not connected with a US trade or business bears a 30% tax on its gross amount, unless a reduced treaty rate applies. Compensation for personal services performed in the United States is nevertheless, as a general rule, effectively connected income, since the performance of such services usually constitutes a US trade or business. Effectively connected income ("ECI") is taxed under the progressive schedule on a net basis. S07 S32

25. Withholding at source is the collection mechanism for the FDAP regime: section 1441 requires the payer or intermediary, as withholding agent, to deduct the tax from the covered payments made to nonresident aliens. Section 881 applies the same 30% rate to foreign corporations on their US-source FDAP income. The treaty rate requires the beneficiary to establish his or her status as a resident of the other State and entitlement to the benefits of the treaty. S09 S08 S27

26. Several domestic-law exceptions limit the reach of the 30% rate. Portfolio interest is exempt, except in particular where it is received by a shareholder holding at least 10%. Gains on securities realised by a non-resident are in principle outside the scope of the tax, unless he or she is present in the United States for at least 183 days during the taxable year, in which case a 30% tax applies to the excess of his or her US-source gains over losses. S07

27. A non-resident who files a return uses Form 1040-NR. He or she may not take the standard deduction (save for a specific treaty exception), may not in principle file a joint return and itemises only the deductions allowed to him or her. A non-resident spouse may, by election and under the conditions provided, be treated as a resident so as to allow a joint return, which then exposes that spouse to tax on worldwide income. S32

28. FIRPTA treats the gain or loss on the disposition of a United States real property interest by a non-resident or a foreign corporation as income effectively connected with a US trade or business. A United States real property interest comprises real property located in the United States and, in principle, interests in a US corporation whose United States real property interests represent at least 50% of certain assets (a "United States real property holding corporation"), with an exception for small holdings of listed shares. S10

29. The purchaser of a United States real property interest disposed of by a foreign person must in principle withhold 15% of the price. No withholding is due where the purchaser intends to use the property as a residence and the price does not exceed 300,000 dollars; the rate is reduced to 10% for a residence whose price does not exceed 1,000,000 dollars, under the conditions of the statute. The withholding is merely a payment on account: the final tax is determined by the transferor's return. S11 S10

6. Companies: residence, base and rates

30. A corporation is "domestic" where it is created or organised in the United States or under the law of the United States or of any state. The federal test is therefore the place of incorporation, not the place of effective management. A corporation incorporated outside the United States is foreign, even if it is managed from US territory, subject to the rules governing its US trade or business. S02

31. Section 11 sets federal corporate income tax at 21% of taxable income. This flat rate applies without a graduated schedule; it does not include state taxes on profits, which follow their own nexus rules and are not described here. S12 S31

32. A foreign corporation engaged in a trade or business in the United States is taxed under section 882, in accordance with sections 11, 55 or 59A, on its income effectively connected with that trade or business. Section 884 additionally imposes on it a 30% tax on its "dividend equivalent amount" (branch profits tax), which aims to align the taxation of a branch with that of a subsidiary distributing its profits. Treaties may reduce this rate. S13 S14

33. The 2025 Act amended, for taxable years beginning after 31 December 2025, the international regimes applicable to US corporations. Section 250 now grants a deduction of 33.34% of "foreign-derived deduction eligible income" and of 40% of "net CFC tested income" and of the corresponding gross-up amount, compared with 37.5% and 50% previously. The BEAT, a base erosion minimum tax targeting groups whose average annual gross receipts reach at least 500 million dollars and whose base erosion percentage reaches at least 3% (2% for certain groups), is raised to 10.5% of modified taxable income. S34 S42 S06

34. The effective rates on such international income result from a combination of the 21% rate, the deductions, foreign tax credits and their limitations. This factsheet gives no summary effective rate: a calculation requires a complete reconstruction of the group and of the years concerned. S34 S12 S45

35. For an entity not organised as a corporation, in particular a partnership or a limited liability company that has not elected corporate treatment, profits are in principle taxed at the level of the members. The section 199A regime discussed above then applies at the level of the individual member. The French treatment of an LLC may differ from its US treatment; Article 4 of the France–United States treaty addresses certain situations involving fiscally transparent entities. S41 S27

7. No federal VAT and state sales taxes

36. The United States does not levy a value added tax at federal level. General consumption taxation is a matter for the states and local authorities, in the form of "sales taxes" due on retail sales and "use taxes" due from the consumer where the tax has not been collected. This factsheet describes neither the rates nor the bases of the states, which vary from one state and one local authority to another. S37 S31

37. In South Dakota v. Wayfair of 21 June 2018, the Supreme Court abandoned the physical presence rule derived from the Bellas Hess and Quill decisions. A state may therefore require a remote seller without a physical presence to collect its sales tax. The South Dakota law under review covered sellers annually delivering more than 100,000 dollars of goods or services into the state or engaging in at least 200 separate transactions; those thresholds are the thresholds of that law, not a federal rule. S37

38. In practice, a French or UAE business selling online to US consumers must check, state by state, its registration, collection and filing obligations. The absence of a federal VAT does not mean the absence of a tax on turnover. S37

8. Real estate: holding, letting and disposal

39. For a non-resident, rents from US real property are in principle FDAP income subject to 30% on the gross amount. Section 871(d) nevertheless allows, under its conditions, an election to treat income from real property held for the production of income as effectively connected income, which opens up taxation on a net basis under the progressive schedule. Whether the election is worthwhile depends on the level of deductible expenses. S07

40. The disposition of a United States real property interest by a non-resident falls under the FIRPTA regime described in section 5, with withholding borne by the purchaser. Neither the France–United States treaty nor domestic law removes real estate gains from taxation by the State in which the property is situated: Article 13 of the treaty allows the State in which the property is situated to tax them, that right not being exclusive of the right of the State of residence, which eliminates double taxation under Article 24. S10 S11 S27

41. A citizen or a resident may exclude the gain realised on the sale of his or her principal residence, up to 250,000 dollars, or 500,000 dollars for certain couples filing jointly, where the property has been owned and used as the principal residence for at least two years during the five years preceding the sale. The section 121 conditions contain exceptions and reductions not detailed here. S35

42. Section 1031 allows the taxation of gain to be deferred on the exchange of real property held for productive use or investment for property of a like kind. The mechanism is limited to real property; it does not eliminate the gain, which is carried over to the property received. S36

43. Property taxation is a matter for the states and local authorities; it is not described here. The federal deduction of those taxes by a taxpayer who itemises deductions remains subject to the section 164 cap set out in section 3. S31

9. Wealth: no federal wealth tax, and the exit tax

44. Federal law contains no annual wealth tax. Wealth is reached by income tax upon realisation, by estate and gift taxes and, for certain taxpayers who leave the US tax system, by the section 877A exit tax. S19 S15

45. The exit tax targets the "expatriate", that is, a citizen who relinquishes citizenship and a long-term resident who ceases to be a lawful permanent resident. A long-term resident is an alien who has been a lawful permanent resident in at least 8 taxable years during the 15 taxable years ending with the year of the event. The date on which citizenship is relinquished is the earliest of the dates listed by statute (renunciation before a consular officer, statement of relinquishment, issuance of a certificate of loss of nationality, cancellation of naturalisation by a court), subject to subsequent issuance of the certificate. S19 S20

46. An expatriate is a "covered expatriate" only if he or she meets one of the three tests in section 877(a)(2): average annual net income tax for the five preceding years above the indexed threshold, net worth of at least 2,000,000 dollars on the expatriation date, or failure to certify, under penalty of perjury, compliance with his or her federal tax obligations for the five preceding years. The average tax threshold is 211,000 dollars for an expatriation in 2026; the 2,000,000-dollar amount is not indexed by the statute. S20 S19 S04 S22

47. Two exceptions disapply the average tax and net worth tests, but not the certification test: a person who became at birth a citizen of the United States and of another country, who remains a citizen and tax resident of that other country and has not been a resident of the United States for more than 10 of the last 15 taxable years; and a person who relinquishes citizenship before reaching 18½ years of age, without having been a resident for more than 10 taxable years. For a Franco-American dual national, the first exception must be examined closely, in particular the condition of tax residence in the other country. S19

48. A covered expatriate is deemed to have sold all his or her property at fair market value on the day before the expatriation date. The gain so determined is reduced, but not below zero, by an amount of 910,000 dollars for 2026. Specific rules cover deferred compensation, tax-deferred accounts and interests in certain trusts; deferral of payment may be elected under conditions, including the provision of security. S19 S04

49. The IRS states that the expatriate files Form 8854, which contains the certification for the five preceding years. A failure to certify is sufficient to make the person a covered expatriate, whatever his or her income and net worth. Before any renunciation, a review of tax compliance for the last five years is therefore a preliminary step. S22 S20

50. For a long-term resident, property held on arrival in the United States is deemed to have a basis not less than its fair market value on the date on which he or she became a resident within the meaning of section 7701(b), unless an irrevocable election is made to the contrary. This rule, laid down in section 877A(h)(2) solely for the purpose of determining the exit tax, limits the exit taxation of that property to the gains accrued since that date. S19

10. Estates and gifts

51. The federal estate tax applies to the estate of a citizen or resident of the United States. The gross estate then comprises all property, movable or immovable, tangible or intangible, wherever situated, under a schedule whose top marginal bracket is 40% above 1,000,000 dollars of taxable base. The unified credit offsets the tax up to the applicable exclusion amount. S15 S52 S16

52. The 2025 Act set the "basic exclusion amount" in section 2010(c)(3) at 15,000,000 dollars for 2026, instead of the reduction scheduled for that date under the previous legislation. This amount will be indexed for 2027 and subsequent years. The exemption for "generation-skipping" transfers is also 15,000,000 dollars in 2026. The unified credit is common to the estate tax and the gift tax. S16 S04 S06

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2026 reference point for transfers	Amount or rate	Sources
Basic exclusion amount (estates and gifts combined)	15,000,000 dollars	S16 S04
Generation-skipping transfer exemption	15,000,000 dollars	S04
Top marginal estate tax rate	40%	S15
Annual exclusion per donee (excluding future interests)	19,000 dollars	S17 S04
Annual exclusion for gifts to a non-citizen spouse	194,000 dollars	S39 S04
Unified credit for the estate of a non-resident non-citizen (domestic law)	13,000 dollars	S18

53. The gift tax applies to gifts made by any person, resident or not. For a non-resident non-citizen, it covers only transfers of property situated in the United States and does not in principle apply to transfers of intangible property, subject to the exception concerning certain expatriates. Each donor may exclude 19,000 dollars per donee in 2026, for gifts that are not gifts of future interests. S46 S54 S17 S04

54. The unlimited marital deduction does not apply automatically where the surviving spouse is not a US citizen. Section 2056(d) disallows it, except for a transfer to a "qualified domestic trust" meeting the conditions of the statute. For gifts between spouses, the annual exclusion for gifts to a non-citizen spouse is increased to 194,000 dollars in 2026. S38 S39 S04

55. The estate of a non-resident non-citizen is taxed only on the part of the gross estate situated in the United States at the time of death, and the domestic-law unified credit is limited to 13,000 dollars. This credit, out of all proportion to that of a citizen, makes US assets held directly by a non-resident (real estate, shares in US corporations under the situs rules) a point of attention, subject to the treaties. S53 S18 S40

56. Section 2801 imposes on a citizen or resident who receives a gift or bequest from a covered expatriate a tax equal to the highest estate tax rate applied to the value received, above the annual exclusion of 19,000 dollars for 2026. The tax is borne by the recipient. This rule extends the effects of expatriation to children or relatives who remain American. S21 S04

11. Treaties with France and international obligations

57. France and the United States are bound by the treaty of 31 August 1994 on taxes on income and capital, as amended by the protocols of 8 December 2004 and 13 January 2009, and by the treaty of 24 November 1978 on estates and gifts, as amended by the protocol of 8 December 2004. The DGFiP publishes consolidated versions; the IRS publishes the text and the protocols. S27 S40 S28 S51

58. The saving clause in Article 29, paragraph 2, allows the United States to tax its residents and citizens as if the treaty did not exist, subject to the exceptions listed in paragraph 3 (in particular elimination of double taxation, non-discrimination, the mutual agreement procedure and certain rules on pensions). The same paragraph allows a former citizen or former long-term resident to be taxed, for ten years following the loss of that status, on his or her income from sources within that State. S27

59. Consequently, a US citizen who is a resident of France within the meaning of the treaty cannot, save for an exception referred to in paragraph 3, rely on the treaty's rate limitations to reduce US federal tax. Double taxation is dealt with by Article 24, which provides, for persons who are both residents of France and citizens of the United States, for a credit granted by France on certain US-source income, subject to evidence of compliance with federal obligations, followed by a US credit for French tax, with rules re-sourcing the income. S27

60. For the purposes of the treaty, France regards a US citizen or a green card holder as a resident of the United States only if he or she has a substantial presence there or would be a resident of the United States, and not of a third State, under certain tie-breaker criteria. A US citizen living in the Emirates is therefore not, on that ground alone, a resident of the United States within the meaning of the treaty for France. In the event of dual residence, Article 4 applies in turn the permanent home, the centre of vital interests, the habitual abode and nationality, followed by agreement between the authorities. S27

61. For a resident of France who is not a US citizen, the treaty limits US tax on dividends to 5% for certain companies holding at least 10% and to 15% in other cases; an exemption is provided for certain companies holding at least 80%, subject to the conditions of the limitation on benefits clause. Interest is in principle taxable only in the State of residence of the beneficial owner, except interest determined by reference to profits. S27

62. The estate and gift tax treaty determines domicile according to successive criteria, with special rules for a national of only one of the two States who has been domiciled in the other for a limited period only. Real property remains taxable in the State in which it is situated; other property, including shares and receivables, is taxable by a State only if the deceased or the donor was a citizen of, or domiciled in, that State, subject to Articles 5 to 7. S40

63. For the estate of a non-citizen domiciled in France, the treaty grants a unified credit at least equal to the fraction of a citizen's credit corresponding to the proportion of the property situated in the United States, if all necessary information is supplied. Separately, it provides for a specific marital deduction, by election and subject to conditions, which may benefit the estate of a deceased person who was domiciled in France or in the United States or who was a US citizen, where the surviving spouse is domiciled in either of the two States; it is limited to the lesser of the value of the qualifying property and the applicable exclusion amount. S40

64. Every "United States person" who has a financial interest in, or signature authority over, financial accounts located abroad must report them on the FBAR (FinCEN Form 114) where their aggregate value exceeded 10,000 dollars at any time during the calendar year. The obligation applies in particular to citizens, residents, corporations, partnerships, LLCs, trusts and estates; it exists irrespective of whether the account is taxable. S23 S26

65. Section 6038D further requires an individual to attach to his or her return information on specified foreign financial assets (Form 8938) where their total value exceeds 50,000 dollars or a higher amount set by the tax authorities. For a taxpayer living abroad, the IRS applies thresholds of 200,000 dollars at year end or 300,000 dollars at any time for a single individual, and of 400,000 or 600,000 dollars for a couple filing jointly. Failure to report is subject to a penalty of 10,000 dollars, increased where the failure continues after notification. S24 S25

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Obligation	Principal filer	Threshold	Sources
FBAR (FinCEN Form 114)	United States person, including entities	More than 10,000 dollars in aggregate at any time during the year	S23 S26
Form 8938, taxpayer living in the United States, single individual	Individual	More than 50,000 dollars at year end or 75,000 dollars at any time	S24 S25
Form 8938, taxpayer living abroad, single individual	Individual	More than 200,000 dollars at year end or 300,000 dollars at any time	S25
Form 8938, taxpayer living abroad, joint return	Married couple	More than 400,000 dollars at year end or 600,000 dollars at any time	S25

66. On the financial institution side, chapter 4 of the Code (FATCA) imposes 30% withholding on withholdable payments made to a foreign financial institution that does not satisfy the agreement or identification requirements laid down in section 1471. To avoid this withholding, the foreign financial institution enters into the agreement provided for in section 1471(b), which requires it in particular to identify US accounts and to report annually the information required in respect of them. Intergovernmental agreements, including the one concluded with France, are not covered here. S44

12. Illustrative cases and limits of application

67. First case: a Franco-American dual national, born in the United States and settled in Dubai, receives dividends from a UAE company. As a citizen, he remains liable to federal tax on those dividends; the section 911 exclusion does not cover this income and, in the absence of UAE tax on the income of individuals, the foreign tax credit generally does not mitigate it. He must also consider his FBAR and Form 8938 obligations. Any renunciation requires checking whether he satisfies the exception for dual nationals from birth and the five-year certification. S03 S30 S45 S23 S25 S19 S20

68. Second case: a French non-resident entrepreneur, without a green card, has spent 120 days a year in the United States for three years. The weighted calculation gives 120 + 40 + 20 = 180 days, below the 183-day threshold; an identical fourth year would give the same result. Presence of 130 days a year would, by contrast, give 130 + 43.3 + 21.7 = 195 days, and hence residence, unless the closer connection exception can be established (unavailable where steps have been taken towards a green card) or a treaty tie-breaker is obtained. S02 S33 S27

69. Third case: a resident of France who is not a US citizen sells an apartment in Miami for 900,000 dollars to a purchaser who makes it his or her residence. The purchaser in principle withholds 10% of the price under FIRPTA; the seller files a non-resident return to determine the final tax on the gain, which is taxable in the United States under Article 13 of the treaty. The French taxation of the same gain and the elimination of double taxation are governed by French law and Article 24. S11 S10 S27

70. Fourth case: a couple in which the husband, a US citizen domiciled in Paris, dies in 2026 leaving his estate to his French wife, who is not a US citizen. The estate is subject to estate tax on worldwide assets with an exclusion amount of 15,000,000 dollars; the marital deduction is in principle disallowed except through a qualified domestic trust, and the 1978 treaty may, by election and subject to conditions, open up a specific marital deduction. The French rules governing the estate must be examined separately. S15 S16 S38 S40

71. Limits. This factsheet describes federal tax as at 26 September 2026 on the basis of the consolidated texts of the Code published by the Office of the Law Revision Counsel, the eCFR and IRS publications. It does not describe state and local taxes, federal social security contributions, the regimes for foreign trusts, controlled foreign corporations and PFICs, or penalties and voluntary disclosure procedures. The 2026 amounts are those of Revenue Procedure 2025-32; subsequent statutes or regulations may supplement them. S01 S04 S03 S32