How much is the foreign earned income exclusion for 2026?
Short answer
$132,900 per person for tax year 2026 ($130,000 for 2025), for wages and self-employment income earned while your tax home is abroad and you pass the bona fide residence or the physical presence test.
Bona fide residence means living abroad for a full tax year; physical presence means at least 330 full days outside the US in any twelve months in a row.
On top of the exclusion, housing costs above a base amount of $21,264 can be excluded or deducted for 2026, up to a limit of $39,870 in Cyprus.
The exclusion does not cover dividends, interest or capital gains, and it does not reduce self-employment tax. For income it does not cover, the foreign tax credit is the tool against double tax.
Sources
Information, not advice. This answer describes the published rules as they stand on 12 October 2026, checked against the sources listed. Tax and residence rules depend on your own circumstances and change; check your position with a tax adviser qualified in the US and in Cyprus before you act on it.
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