Summary (tl;dr)

The U.S. State Department has significantly reduced the fee for renouncing U.S. citizenship by 80%, dropping it from $2,350 to $450, following years of legal challenges and advocacy from groups representing Americans living abroad.

Essential Background

Historically, there was no fee to renounce U.S. citizenship before 2010. A $450 administrative fee was introduced in 2010, which was then dramatically increased to $2,350 in 2015 (or 2014). This hike was primarily attributed to a surge in demand for renunciation services, partly spurred by the Foreign Account Tax Compliance Act (FATCA) of 2010, which imposed stricter tax reporting requirements on American expatriates and foreign financial institutions.

The Full Story

On Friday, March 13, 2026, the U.S. State Department published a final rule in the Federal Register to cut the fee for formally renouncing U.S. citizenship from $2,350 to $450. This 80% reduction makes the fee the same as it was between 2010 and 2014, and it is set to take effect on April 13, 2026. The decision comes after a lengthy campaign and several lawsuits, notably by the France-based Association of Accidental Americans, which argued that the higher fee was an unconstitutional barrier to a fundamental right. The State Department had initially promised this reduction in 2023 but had not implemented it until now.

Why It Matters

This reduction is significant for many U.S. citizens living abroad, particularly "accidental Americans" – individuals who acquired U.S. citizenship by birth but have little to no connection to the United States. These individuals, along with other expatriates, often face complex and burdensome U.S. tax compliance obligations on their worldwide income, a rare practice among developed nations. The previous $2,350 fee was criticized as punitive and a deterrent, making it difficult for many to exercise their right to renounce citizenship. While the administrative fee has been lowered, other potential costs and complexities, such as exit taxes for "covered expatriates" and the requirement to be tax compliant for five years prior to renunciation, remain unchanged.

Geographic Location

• Washington, D.C., District of Columbia, United States (U.S. State Department published final rule and made decision)
• District of Columbia, United States (U.S. District Court where legal challenges were filed)