US 2025 IRS Tax Updates for U.S. Expats

Key Changes

Foreign Earned Income Exclusion (FEIE): Increased to $130,000 (from $126,500 in 2024), allowing expats to exclude more foreign-earned income from U.S. taxation.
Standard Deduction:
- Single filers: $15,000
- Married filing jointly: $30,000
- Head of household: $22,500
Retirement Contribution Limits:
- 401(k) and 403(b): Increased to $23,500
- IRA: Remains at $7,000

Income tax rates 2025

Tax Rate

Single filers,
married couple

Married couples
filing jointly

Heads of
households

10%

Up to $11,925

Up to $23,850

Up to $17,000

12%

$11,925 – $48,475

$23,850 – $96,950

$17,000 – $64,850

22%

$48,475 – $103,350

$96,950 – $206,700

$64,850 – $103,350

24%

$103,350 – $197,300

$206,700 – $394,600

$103,350 – $197,300

32%

$197,300 – $250,525

$394,600 – $501,050

$197,300 – $250,500

35%

$250,525 – $626,350

$501,050 – $751,600

$250,500 – $626,350

37%

$626,350+

$751,600+

$626,350+

Filing Deadlines for Expats

Note: Extensions to file do not extend the time to pay taxes owed.