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3d ago

U.S. Citizenship Renunciations Rise After State Department Cuts Fee

A steep cut to the consular renunciation charge has lowered a big cost hurdle and appears to be prompting more Americans overseas to pursue expatriation for tax and political reasons.

Erin Klatt renounced her American citizenship at the US consulate in Auckland, New Zealand.
Some US citizens who also hold Italian citizenship opt to drop their American passports. Palermo, Sicily, is pictured.
Caroline Chirichella and her family live in Italy. She holds dual US and Italian citizenship, but is weighing giving up her American citizenship.

Overview

  • IRS Federal Register data show nearly 5,000 people renounced U.S. citizenship in 2025, and hundreds more did so in the first three months of 2026, signaling an upward trend in expatriations.
  • In April 2026 the State Department reduced the in-person renunciation fee from $2,350 to $450, and assistance groups report a sharp rise in inquiries after the cut.
  • Americans Overseas says it is advising roughly 40,000 people who have asked about or started the process and projects about a 15 percent increase in completed expatriations this year.
  • The main driver named by expatriates and advisers is U.S. citizenship-based taxation and reporting rules such as FATCA, which require many U.S. citizens living abroad to file U.S. tax returns regardless of residence.
  • Renunciation remains legally and administratively constrained because people must already hold another citizenship, bring up-to-date tax filings, attend consular interviews and take an in-person oath, a process that can change their finances and access to U.S. services.