Renouncing US citizenship: the facts

Renouncing ends your US citizenship for good. It doesn't wipe your US tax history, and there's no take-backsies, so get the facts straight before you book the appointment.

The short version

You renounce in person, before a US consular officer, outside the United States, by signing an oath of renunciation. The State Department then approves a Certificate of Loss of Nationality (CLN).
The fee dropped from USD 2,350 to USD 450 under a State Department final rule published March 13, 2026 and effective April 13, 2026 [1][2].
For tax, you file Form 8854 with your return for the year you expatriate. Leave out the certification of five years of tax compliance and you're automatically a "covered expatriate" [3][4].
You're also a covered expatriate if your net worth is USD 2 million or more, or your average annual net income tax for the past five years is over USD 206,000 (2025) or USD 211,000 (2026) [3][5]. Covered expatriates may owe an exit tax on gains above an exclusion of USD 890,000 (2025) or USD 910,000 (2026).
You won't be able to transmit citizenship to children born afterward, and you'll need a visa or travel authorization to visit the US [6].

Who renounces, and why

People renounce for many reasons. They may have built a life in another country and have no plans to return. They may be tired of filing US returns and FBARs on top of local taxes. They may have been refused a bank account because of FATCA reporting. Or their spouse and children may not be American, and they want their finances in one system. Some are "accidental Americans" born in the US who left as babies and only found out about Uncle Sam's paperwork when a bank asked.

It's a legitimate choice, but it's a one-way door. Think of it less like quitting a gym and more like selling the family farm. Many people find that getting their US filings in order fixes the problem that made them want to leave. Get your taxes straight first in any case, because you'll need to certify five years of compliance to avoid covered-expatriate status.

The consular process

Renunciation under section 349(a)(5) of the Immigration and Nationality Act has strict formal requirements. You must appear in person before a US diplomatic or consular officer, in a foreign country, and sign a formal oath. You can't renounce by mail, by email, through a lawyer, or from anywhere stateside.

Steps

Contact the embassy. Most embassies and consulates handle renunciations by appointment only, and some have waits of months. Patience is part of the price. Some posts schedule two meetings: a first to explain the consequences and a second, after a reflection period, to take the oath.
Prepare the forms. The embassy will ask you to complete a questionnaire (Form DS-4079), and at the appointment you'll sign the Oath of Renunciation (DS-4080) and a Statement of Understanding (DS-4081) [6].
Attend the interview. The consular officer checks that you act voluntarily and intend to give up citizenship. If you have no other nationality, they warn you that you'll become stateless [6].
Pay the fee. USD 450 from April 13, 2026 [1][2].
Hand in your US passport. It's usually canceled at the appointment.
Wait for the CLN. The State Department in Washington reviews the case and approves Form DS-4083, the Certificate of Loss of Nationality. It's mailed or delivered to you, often months later, so don't hold your breath.

What the Statement of Understanding says

Form DS-4081 sets out the consequences you acknowledge in writing [6]. They include:

"I will become an alien with respect to the United States."
Renunciation "may not exempt me from United States income taxation."
It "may not affect my military or selective service status," your liability to prosecution for crimes, or extradition.
"I will no longer be able to transmit U.S. nationality to my children born subsequent to this act."
"The extremely serious and irrevocable nature of the act of renunciation/relinquishment has been explained to me."

Minors and dual nationals

Children can renounce, but consular officers look closely at whether a minor understands what they're doing and is acting voluntarily, and they can decline to take the oath if they're not satisfied. Dual nationals can renounce US citizenship while keeping their other nationality. People with no other nationality can renounce too, but they're warned about becoming stateless.

The fee: from USD 2,350 to USD 450

For years, the CLN fee was USD 2,350, by far the steepest consular fee on the books and a classic case of sticker shock. A State Department final rule in the Federal Register on March 13, 2026 cut it to USD 450 for oath-of-renunciation and other CLN requests, effective April 13, 2026 [1][7]. The fee now sits in the consular fee schedule at 22 CFR 22.1, Item 8 [2]. The bad news if you paid early: the State Department declined to refund anyone who paid USD 2,350 before the change, saying the old fee was properly charged [1].

The tax side: Form 8854 and the exit tax

Here's the fine print. Giving up citizenship has its own tax rules, in sections 877 and 877A of the Internal Revenue Code. They apply to citizens who renounce and to long-term green card holders who give up residency [3].

Your expatriation date

For a renunciation, the expatriation date is generally the day you swore the oath before the consular officer, as long as the State Department later confirms it with a CLN [4]. You're a US taxpayer up to that date and a nonresident after it. In the year you expatriate you file a "dual-status" return, Form 1040 for the citizen part and Form 1040-NR for the rest, with Form 8854 attached.

Am I a covered expatriate?

You're a covered expatriate if any one of these applies on your expatriation date [3][4][5]:

Test	2025 expatriation	2026 expatriation
Average annual net income tax for the five prior years	More than USD 206,000	More than USD 211,000
Net worth	USD 2 million or more	USD 2 million or more (not indexed)
Five-year tax compliance certification on Form 8854	Not certified	Not certified
Exit tax exclusion on deemed gains	USD 890,000	USD 910,000

Two exceptions can take you out of the first two tests, though not the compliance test [4]:

Dual citizens from birth who are still citizens and tax residents of the other country, and who were US residents for no more than 10 of the past 15 tax years.
Under 18 and a half, if you were a US resident for no more than 10 tax years.

What the exit tax does

If you're covered, section 877A treats you as having held a giant yard sale: you're deemed to have sold everything you own at fair market value on the day before your expatriation date. The deemed gain above the exclusion amount is taxed [3]. Deferred compensation, such as pensions and 401(k) plans, and specified tax-deferred accounts such as IRAs, have their own rules. Some are taxed as if fully distributed, and others face 30% withholding on future payments. Gifts and bequests from a covered expatriate to US persons can later be taxed to the recipient under section 2801.

Filing and penalties

You attach the initial Form 8854 to your return for the year that includes your expatriation date, by that return's due date, and send a copy to the IRS in Austin, Texas [4]. Failing to file, or filing an incomplete or incorrect form, carries a USD 10,000 penalty unless you show reasonable cause [4].

Before renouncing, plenty of people use the IRS Streamlined Foreign Offshore procedures to catch up on missed returns and FBARs, so they can certify five years of compliance. A US expat tax preparer (or lawyer) can check your situation, especially if you have a pension, stock options or a business.

What doesn't change

Back taxes and penalties. Any US tax you owe for years as a citizen stays owed. The IRS has a long memory.
Social Security you earned. Benefits based on your work record are generally still payable to non-citizens living abroad, but rules vary by country and some non-citizens face limits. Check with the SSA's Federal Benefits Unit for your region before you renounce.
US property and accounts. You can still own a US home and investments, but US tax applies to them as a nonresident, and US estate tax for nonresidents has a much smaller exemption.
Selective Service and criminal liability, as DS-4081 says [6].

What does change is how you visit the US. Thanksgiving with the family now means entering as a foreign national under your other passport, through the Visa Waiver Program's ESTA or with a visa, in the non-citizen line at the airport. Former citizens who renounced to avoid tax can in principle be found inadmissible under the INA (the 1996 "Reed Amendment"), though it has rarely been applied.

Before you book the appointment

Confirm you hold another nationality and a valid passport for it.
Bring your US tax returns and FBARs up to date for at least the last five years.
Work out your net worth and five-year average tax figure against the 2026 thresholds.
Check how your pension, retirement accounts and any US property will be treated.
Consider children: future children won't get US citizenship through you.
Contact the embassy, ask about waiting times, and book.

Renouncing US citizenship: the process, the fee and the exit tax