US citizenship renunciations jump 68.5% in one quarter: the IRS confirmed it
The IRS published its quarterly list of individuals who lost US citizenship or gave up long-term permanent residency between April and June 2026. The number: 1,800 people, up 68.5% from the same quarter in 2025 and up 21.8% from the previous quarter. It is the highest quarterly count on recent record, and it lands just months after the US government cut the cost of renouncing by nearly 80%. Behind the headline sits a detail almost nobody checks before signing: renouncing can trigger an exit tax that, planned badly, costs far more than the paperwork itself.
Under section 6039G of the US tax code, the IRS is required to publish, every quarter, the names of individuals who renounced citizenship or surrendered a long-term green card. The Q2 2026 publication came out on July 22 and confirmed 1,800 expatriations between April and June. It is the highest quarterly figure on recent record, and it extends a trend that has been climbing for several quarters in a row.
The IRS itself and several firms tracking the publication tie part of the jump to a concrete administrative change: since April 2026, the State Department charges $450 to process a renunciation, down from $2,350. That is close to an 80% cut in the entry barrier. But the cost of the paperwork and the tax cost of leaving are two entirely different things, and that is where most people get confused.
The United States is one of the few countries in the world that taxes its citizens on worldwide income no matter where they live. So when someone formally renounces, the IRS does not just say goodbye: it first runs a calculation called the expatriation tax, under section 877A of the tax code. If the person qualifies as a "covered expatriate," the IRS treats all of their assets as sold the day before expatriation, and taxes the gain on that deemed sale, immediately.
| Test | 2026 threshold |
|---|---|
| Net worth | US$2,000,000 or more (fixed amount, not inflation-adjusted) |
| Average annual federal tax | More than US$211,000 over the 5 years before expatriation |
| Tax compliance | Failing to certify 5 years of compliant filings on Form 8854 |
| Gain exclusion | The first US$910,000 of gain is exempt, the rest is taxed immediately |
This is not only people who already lived outside the US for years. We are seeing three distinct profiles push this number up: founders and freelancers who already moved their tax residency to a territorial or zero rate country and want to formally close the door with the IRS; crypto investors and traders watching their unrealized gains get harder to justify to the US tax authority every year that passes; and "accidental Americans," people born in the US or to a US parent who never lived there but still carry the worldwide reporting obligation they never asked for.
For all three profiles, the cheaper fee removes a real barrier. But none of them should make the decision by looking only at the consular cost.
Is your exit actually planned?
Our AI co-founder reviews your tax residency, net worth and structure before you renounce, free, no obligation. If your case warrants it, a written strategy session costs $449 USD.
Start my diagnostic →1. Calculate whether you are a covered expatriate
Before booking the consular appointment, run the numbers: net worth, average federal tax over the last five years, and whether your filings are current. If you qualify as a covered expatriate, you need to know the exact bill before you sign, not after.
2. Lock in your destination tax residency first
Renouncing US citizenship solves nothing if you do not have a real, documented tax residency waiting on the other side. The sequence that works starts with securing where you will be taxed next, not with cutting the tie to the US.
3. Review your structure before, not after
If you hold an LLC, a trust, or financial assets with US exposure, how they are structured changes the outcome of the exit calculation. Adjusting the structure after you renounce is no longer an option.
4. Document five years of compliance
Without Form 8854 and five years of accurate filings, you cannot certify compliance, and that alone makes you a covered expatriate regardless of your net worth.
Frequently asked questions
How much does it cost to renounce US citizenship in 2026?
The consular process costs $450 as of April 2026, down nearly 80% from the previous $2,350. That is only the administrative cost of the paperwork; it is separate from the exit tax that may apply based on your net worth and tax history.
What is a covered expatriate?
It is someone who, at the time of renouncing, meets at least one of three conditions: a net worth of US$2 million or more, an average federal tax liability above US$211,000 over the prior five years, or failing to certify five years of compliant filings. If you qualify, the IRS treats your assets as sold the day before expatriation and taxes the gain above US$910,000 immediately.
Why did renunciations jump so much this quarter?
The IRS and several tax firms tracking the data attribute part of the increase to the nearly 80% cut in the renunciation fee, in effect since April 2026. A growing number of people who already moved their tax residency to zero rate or territorial countries and want to formally close their relationship with the IRS is also a factor.
Does renouncing citizenship remove me from the US tax system right away?
Not automatically, and not for free if you qualify as a covered expatriate. The exit tax is calculated and paid as part of the expatriation process. Also, without a properly documented new tax residency, renouncing by itself does not resolve your tax situation.
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Exit taxes compared: which countries charge you for leaving Territorial vs worldwide taxation: how the two systems really work CRS explained: exactly what your bank reports to your home countryThis content is informational and educational. It is not legal or tax advice. Verify current regulations and consult a specialist about your case before making decisions.