Foreign Housing Exclusion & Deduction Calculator

Calculate your housing amount using IRS Notice 2025-16 limits, high-cost locality caps, and FEIE interaction

📅 Updated with 2025 limits ⚡ Real-time calculations 💰 Free to use

🏠 Housing Calculator

Adjust the sliders below. Results update in real-time.

💰 Housing Expenses

$48,000
$6,000
$2,000
$4,000
$1,200
$1,800

🌍 Personal Information

$150,000
$126,500

Your Housing Calculation Results

Total Qualified Expenses

$63,000
Rent + utilities + insurance + other

Base Amount (2025)

$20,800
16% of FEIE

Applicable Cap

$56,400
Singapore cap

Final Housing Amount

$35,200
After all limits applied

📋 Step-by-Step Calculation

Total Qualified Housing Expenses: $63,000
Less: Base Amount ($20,800): ($20,800)
Tentative Housing Amount: $42,200
Applicable Cap: $56,400
After Cap Applied: $42,200
FEIE Limit (Income - FEIE): $23,500
Final Housing Amount: $23,500

🌍 Quick Select: High-Cost Localities (2025 Caps)

🇭🇰 Hong Kong
$114,300 cap
🇦🇴 Luanda
$84,000 cap
🇯🇵 Tokyo
$67,700 cap
🇸🇬 Singapore
$56,400 cap
🇬🇧 London
$50,200 cap
🇫🇷 Paris
$48,200 cap
🇳🇴 Oslo
$46,800 cap
🇨🇭 Geneva
$45,600 cap
🇦🇺 Sydney
$44,200 cap
🇦🇪 Dubai
$42,800 cap
🇰🇷 Seoul
$41,800 cap
🇩🇪 Munich
$40,800 cap

✅ Qualified Housing Expenses

  • Rent – Monthly rent for principal foreign home
  • Utilities – Electricity, gas, water, sewer
  • Insurance – Renter's or property insurance
  • Furniture rental – Rental of furniture for the home
  • Residential parking – Parking fees at residence
  • Real estate taxes – If paid by renter
  • Repairs – Normal maintenance and repairs
  • Security system – Monitoring fees, equipment rental

❌ Non-Qualified Expenses

  • Purchase price – Down payment or home purchase cost
  • Mortgage principal – Loan principal payments
  • Mortgage interest – Interest on home loan
  • Purchased furniture – Cost of buying furniture
  • Improvements – Home improvements or renovations
  • Domestic help – Housekeepers, nannies, gardeners
  • Meals – Food, groceries, dining out
  • Entertainment – Cable TV, streaming services

📋 2025 Housing Limits

  • Base Amount: $20,800 (16% of FEIE)
  • Standard Cap: $39,000 (30% of FEIE)
  • Hong Kong: $114,300
  • Singapore: $56,400
  • London: $50,200

⚖️ Exclusion vs Deduction

  • Employees: Housing Exclusion (Form 2555)
  • Self-Employed: Housing Deduction (Schedule 1)
  • Same calculation method
  • Both require FEIE qualification
  • Above-the-line deduction for self-employed

⚠️ Important Rules

  • Must qualify for FEIE first
  • Housing amount ≤ Income - FEIE
  • Keep all receipts for 3-6 years
  • Document currency conversion
  • High-cost caps apply per city

❓ Housing Calculator FAQ

What's the difference between Housing Exclusion and Housing Deduction?
The Housing Exclusion is for employees and reduces taxable income directly on Form 2555. The Housing Deduction is for self-employed individuals and is claimed as an above-the-line deduction on Schedule 1. The calculation method is identical for both.
What is the base amount for 2025?
The base amount for 2025 is $20,800, which is 16% of the FEIE amount ($126,500 × 0.16). Your housing expenses must exceed this amount to qualify for any exclusion or deduction.
How do I know if my city is a high-cost locality?
The IRS publishes an annual list of high-cost localities in Notice 2025-16. Major cities like Hong Kong, Tokyo, London, Singapore, Paris, and Sydney typically qualify. You can select your city from our quick selector above to see the applicable cap.
Can I claim housing expenses if I don't qualify for FEIE?
No. You must qualify for the Foreign Earned Income Exclusion to claim either the housing exclusion or deduction. The housing amount is an additional benefit available only to those who meet FEIE requirements.
What expenses can I include in the calculation?
Qualified expenses include rent, utilities (electricity, gas, water), renter's insurance, furniture rental, residential parking, and normal repairs. You cannot include mortgage payments, purchased furniture, improvements, or domestic help.
How does the FEIE limit work?
Your housing amount cannot exceed your foreign earned income minus the FEIE you claim. For example, if you earn $150,000 and claim $126,500 FEIE, your housing amount is limited to $23,500 ($150,000 - $126,500).
Can I claim both FEIE and housing exclusion in the same year?
Yes. You can claim both, subject to the limit described above. The calculator automatically applies this limit to ensure your total exclusions don't exceed your foreign earned income.
What records should I keep for housing expenses?
Keep rent receipts, lease agreements, utility bills, insurance documents, and bank statements showing payment. Also document currency conversion rates. Retain all records for at least 3 years (6 years recommended for audit protection).