Expat Side Hustle
Tax Estimator
The only free calculator that compares FEIE vs FTC vs Combined — with self-employment tax, housing exclusion, state tax, and quarterly payments.
FEIE vs Foreign Tax Credit: how the comparison works
US citizens and green card holders owe US tax on worldwide income no matter where they live. Two mechanisms reduce that bill, and they work differently. The Foreign Earned Income Exclusion removes foreign earned income from US taxable income — up to $130,000 for 2025. The Foreign Tax Credit instead credits income tax you already paid abroad against what you owe the US. The FEIE usually wins in low-tax countries; the FTC usually wins in high-tax ones; a mix of income types often favors combining them.
The expensive misunderstanding is this: the FEIE does not cover self-employment tax. It reduces income tax only. Self-employment tax — 15.3% on net self-employment earnings, up to a Social Security wage base of $176,100 for 2025 — is still owed unless a totalization agreement between the US and your country of residence exempts you.
This calculator runs all four scenarios — no exclusion, FEIE only, FTC only, and combined — and names the cheapest for your situation. It handles W-2 wages, self-employment income, capital gains, rental income, and dividends across 24 countries and 24 US states, and produces a quarterly estimated-payment schedule. Everything runs in your browser; nothing is stored or sent anywhere. It is an estimator, not tax advice — confirm with a cross-border tax professional before filing.
Expat self-employment tax: common questions
Do US expats have to pay self-employment tax?
Yes, in most cases. US citizens and green card holders owe self-employment tax on net self-employment income regardless of where they live, and the Foreign Earned Income Exclusion does not remove it — the FEIE reduces income tax, not self-employment tax. The main exception is a totalization agreement: if you live in a country that has one with the US and you pay into that country's social security system, you can generally be exempt from US self-employment tax. This calculator flags which of its 24 supported countries have totalization agreements.
What is the difference between the FEIE and the Foreign Tax Credit?
The Foreign Earned Income Exclusion excludes foreign earned income from US taxable income — up to $130,000 for 2025 — while the Foreign Tax Credit instead credits the income tax you already paid to another country against your US bill. The FEIE tends to win in low-tax or no-tax countries where you have little foreign tax to credit. The FTC tends to win in high-tax countries where foreign tax paid exceeds what the exclusion would save, and it leaves income in the system that can support other credits. They can also be combined, applying the FEIE to some income and the FTC to the rest.
Should I use the FEIE or the Foreign Tax Credit?
It depends primarily on your country's tax rate and your income mix, which is why guessing is expensive. As a rough rule: low-tax country and mostly earned income favors the FEIE; high-tax country favors the FTC; a mix of W-2, self-employment, and investment income often favors a combined approach. This calculator runs all four scenarios — no exclusion, FEIE only, FTC only, and combined — side by side and names the cheapest.
How many days do I need to be outside the US to qualify for the FEIE?
Under the Physical Presence Test you need 330 full days outside the United States in any consecutive 12-month period. There is also a Bona Fide Residence Test, which depends on establishing genuine residency abroad for an uninterrupted tax year rather than counting days. The calculator uses the 330-day threshold.
Does the FEIE cover self-employment tax?
No. This is the single most common and most expensive misunderstanding in expat tax. The Foreign Earned Income Exclusion applies to income tax only. Self-employment tax — Social Security and Medicare, currently 15.3% on net self-employment earnings up to the Social Security wage base of $176,100 for 2025 — is still owed unless a totalization agreement exempts you.
Do I still owe US state tax while living abroad?
Possibly, depending on which state you left and whether you severed residency. Some states release you readily; others continue to assert residency until you demonstrate you have established domicile elsewhere. The calculator includes rates for 24 states so you can see the effect of your last state of residence on the total.
What is the foreign housing exclusion?
The foreign housing exclusion lets you exclude a portion of qualifying housing costs abroad on top of the FEIE. The amount depends on your income and your city, since high-cost locations carry higher limits. The calculator applies a per-country housing multiplier to estimate it.
Do expats have to make quarterly estimated payments?
Generally yes, if you expect to owe $1,000 or more and are not covering it through withholding. Self-employment income has no withholding, so most expat freelancers and business owners owe quarterly estimates. The calculator produces a Q1–Q4 schedule with due dates alongside the strategy comparison.
Is this calculator tax advice?
No. It is an estimator built on published 2025 figures and is intended to show how the strategies compare, not to file your return. Expat tax involves treaty positions, residency facts, and filing elections that a calculator cannot evaluate. Use it to understand the shape of your situation, then confirm with a qualified cross-border tax professional before filing.