US cuts the fee to give up citizenship by 80%

Giving up citizenship just got cheaper

The State Department cut the fee to renounce U.S. citizenship from $2,350 to $450 on March 13, 2026. The change takes effect April 13.

That is an 80% drop and brings the cost back to where it started in 2010, when the government first began charging for the process.

The new fee covers the administrative processing of a Certificate of Loss of Nationality, the official document that confirms someone has given up their citizenship.

The fee jumped sharply back in 2015

The cost was not always this high. In 2015, the State Department raised the fee from $450 to $2,350, saying a surge in applications had pushed up processing costs.

The number of renunciation requests had climbed from 956 in 2010 to 3,436 in 2014.

Much of that increase tied back to a 2010 law called the Foreign Account Tax Compliance Act, or FATCA, which requires foreign banks to report U.S. account holders to the IRS.

The higher fee made the U.S. the most expensive country in the world for renunciation.

This change took three years to arrive

The State Department first proposed the fee cut in October 2023. It collected more than 900 public comments but never acted on the proposal until now.

During those three years, court filings from the Association of Accidental Americans show at least 8,755 people paid the full $2,350 to renounce.

The delay kept a steep price tag on a process that advocacy groups said blocked access to a fundamental right.

“Accidental Americans” pushed hardest for the change

The term “accidental Americans” refers to people born on U.S. soil who moved away as infants or young children and have spent most of their lives abroad.

Under U.S. law, they are still considered citizens and must follow American tax rules no matter where they live.

The France-based Association of Accidental Americans led the charge for the fee reduction, filing lawsuits and lobbying for years to bring the cost down.

US taxes make life harder for citizens abroad

The United States is one of only two countries in the world, along with Eritrea, that taxes its citizens on worldwide income regardless of where they live. FATCA pushes that burden further.

Many foreign banks now refuse to open accounts for Americans, close existing ones, or deny mortgages and investment services.

Even Americans who owe nothing in U.S. taxes still face complex annual filing requirements, including reporting all foreign bank accounts. For many, renouncing has become the only practical fix.

Renunciation numbers keep climbing

Before 2009, fewer than 400 Americans per year gave up their citizenship. By 2016, that number topped 5,400.

The all-time high came in 2020, when 6,705 Americans renounced. In 2024, nearly 5,000 people formally gave up their citizenship, a 48% jump over 2023.

The State Department’s final rule estimates about 4,661 people apply each year for a Certificate of Loss of Nationality.

Lawsuits drove the fee reduction

The Association of Accidental Americans filed several lawsuits arguing the $2,350 fee was unconstitutional.

One case remains active and argues there should be no fee at all, since renunciation involves a fundamental right. The group’s president, Fabien Lehagre, called the reduction a victory after six years of legal action.

The State Department acknowledged in the rule that the high fee and FATCA-related burdens had made U.S. citizenship abroad increasingly hard to maintain.

Renouncing takes time and multiple steps

Renouncing citizenship is not a one-day process. It requires an in-person visit to a U.S. embassy or consulate abroad, multiple written and verbal confirmations that the applicant understands the consequences, and at least two interviews with a consular officer.

Washington then reviews the case before approval.

Once approved, the applicant takes a formal oath of renunciation and receives a Certificate of Loss of Nationality.

The tax burden does not go away yet

A lower fee does not change the tax rules. Americans must be current on their filings for the five years before renunciation.

Those with a net worth above $2 million or high average annual tax bills may owe an exit tax on their worldwide assets. A final tax return and IRS Form 8854 still must be filed after renouncing.

The fee cut saves $1,900 up front, but tax preparation and compliance costs can add thousands more on top.

The government takes a financial hit

The State Department said the $450 fee still falls below the actual cost of processing a renunciation.

The fee cut is expected to reduce annual federal collections by about $8.9 million, according to the State Department’s final rule. That money goes to the U.S. Treasury, not to fund consular operations.

The State Department has not released updated totals on how many Americans have renounced their citizenship over the years.

Giving up citizenship is permanent

Renouncing is irreversible. Former citizens lose the right to live and work in the United States without a visa, can no longer vote in U.S. elections or carry a U.S. passport, and cannot pass citizenship to children born after renunciation.

The IRS publishes their names quarterly in the Federal Register.

Anyone considering this step should consult a qualified tax professional and immigration attorney before moving forward.

More changes may still be coming

The fee reduction takes effect April 13, 2026, and applies to appointments on or after that date. The pending lawsuit seeking to eliminate the fee entirely could still lead to further changes.

Advocacy groups are also pushing Congress to adopt residence-based taxation, which would tax Americans abroad only on U.S. income.

Rep. Darin LaHood introduced the Residence-Based Taxation for Americans Abroad Act, which would let qualifying citizens abroad opt out of worldwide taxation without renouncing.

This article was created with AI assistance and human editing.

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