The Economic Times

Digital nomads take note: The $132,900 foreign earned income exclusion for 2026 could wipe out tax on overseas income, here's the catch

For Americans earning money while living and working abroad, one of the biggest 2026 tax changes is the higher foreign earned income exclusion. The IRS has raised the limit to $132,900, up from $130,000 in 2025. That means eligible taxpayers may be able to exclude up to $132,900 of foreign earned income from U.S. federal income tax.