Americans Renounce Citizenship After 80% Fee Cut as 2025 Expatriations Reach 4,889
Updated
Updated · CNN · Jun 11
Americans Renounce Citizenship After 80% Fee Cut as 2025 Expatriations Reach 4,889
1 articles · Updated · CNN · Jun 11
Summary
$450 is now the fee to renounce US citizenship, down from $2,350, a cut that some dual nationals say is pushing long-delayed decisions into action.
4,889 Americans appeared on IRS expatriation lists in 2025, the highest since 2020, and Americans Overseas expects a further 15% increase while advising about 40,000 people considering or pursuing renunciation.
Worldwide taxation remains the main driver: the US is one of only two countries taxing citizens on global income, and advisers say FATCA compliance and banking restrictions hit expatriates and “accidental Americans” especially hard.
The process still requires another citizenship, five years of tax filings and an in-person consular oath, with advisers warning that renouncing can permanently complicate future US travel, work and identity ties.
The fee to quit America is now just $450. What permanent, life-altering consequences are expatriates overlooking in their decision?
With US expats facing heavy tax burdens, what is the real chance of the proposed residence-based tax reform actually passing?
U.S. Slashes Renunciation Fee to $450: Rising Expat Numbers, Tax Pressures, and Reform Debates
Overview
The U.S. State Department recently announced a major reduction in the fee for renouncing U.S. citizenship, lowering it from $2,350 to $450 effective March 15, 2026. This change follows six years of advocacy and legal action by groups like the Association of Accidental Americans, who argued that the high fee was an unfair barrier, especially for those with little connection to the U.S. but who still face tax and reporting obligations due to birthright laws. The fee cut is expected to make renunciation more accessible and provide relief to many seeking to resolve their unwanted citizenship status.