How to leave the US comes down to two separate jobs: getting the legal right to live somewhere else, and untangling yourself from the US systems that keep following you. Leaving the country doesn’t end your federal tax filing as a citizen, and it doesn’t automatically end your state tax residency either, so the paperwork matters as much as the flight.
Last checked: October 2026
In short:
- US citizens living abroad still file federal returns on worldwide income, with an automatic extension from April 15 to June 15 for calendar-year filers, though interest runs from April 15.
- Some states keep you as a tax resident after you leave: Virginia treats a resident who takes a job in another country as still domiciled there unless they take steps to abandon Virginia domicile.
- Renouncing citizenship is a separate decision; the State Department fee for processing a Certificate of Loss of Nationality fell from $2,350 to $450 on 13 April 2026.
Step 1: pick a destination and a visa route
Start with the visa, not the city. A US passport usually gives you a visa-free tourist stay, but that isn’t permission to live or work. The realistic routes for remote earners are a digital nomad visa, a passive-income or retirement visa, a work permit tied to a local employer, or residency through investment or a local company. Check the consulate’s own page for the current income figure before you book anything.
Settle early whether the new country will treat you as tax resident and whether it has a social security (totalization) agreement with the US.
Step 2: break state tax residency properly
Federal tax follows your citizenship. State tax follows domicile, and some states are hard to leave on paper. What the state tax authorities themselves say:
| State | What keeps you resident | Source |
|---|---|---|
| California | You’re a resident if domiciled in California but outside it “for a temporary or transitory purpose”. A safe harbour treats you as a nonresident if you’re abroad under an employment-related contract for at least 546 consecutive days, unless intangible income tops $200,000 in any year of the contract or the main purpose is avoiding tax. Return visits of up to 45 days a year are allowed. | FTB Pub 1031 (2025) |
| New York | Domicile doesn’t change “until you can demonstrate with clear and convincing evidence” you’ve abandoned it and set up a new one elsewhere. | NY Tax Department |
| Virginia | A resident who takes a job in another country stays a domiciliary resident “unless appropriate steps are taken to abandon Virginia as the state of domicile.” | Virginia Tax |
| New Mexico | Domicile “does not change until the individual moves to a new location with the bona fide intention of making that location his or her permanent home.” A temporary absence keeps you resident. | NM regulation 3.3.1 |
California’s guidance is clear that it’s “the strength of your ties, not just the number of ties” that counts. The ties it lists include where your spouse and children live, your principal residence, driver’s licence, vehicle registration, voter registration, bank accounts, professional licences and doctors.
Practical moves before you go: end or rent out the home on a proper lease, move your licence and car registration where you can, file a part-year return for the year you leave, and keep evidence of your departure date (flight records, a foreign lease, your residence permit).
Step 3: keep federal tax compliance running
The IRS is plain about it: citizens abroad are “subject to tax on worldwide income from all sources”, and the filing rules are the same as at home. You get an automatic 2-month extension to June 15, and you can push to October 15 with Form 4868 filed before June 15. Interest still runs on unpaid tax from April 15.
Two reporting forms catch most people:
- FBAR (FinCEN Form 114): required if your foreign accounts add up to more than $10,000 at any time in the year. Filed electronically with FinCEN, due April 15 with an automatic extension to October 15.
- Form 8938 (FATCA): for filers living abroad, required above $200,000 at year end or $300,000 at any time (single), or $400,000 and $600,000 (married filing jointly).
Exclusions, credits and self-employment tax are covered in our US expat taxes thread.
Step 4: sort money, health cover and benefits
Banking and brokerage. Change your address to a foreign one and some US providers will restrict or close the account. Per Taxes for Expats, closures are driven by FATCA costs, know-your-customer rules and local securities laws, and Fidelity restricts services, including mutual fund purchases, for customers who move abroad. Ask your bank and broker, in writing, what happens when you update your address, and keep at least one US account and card that work from overseas.
Health insurance. Medicare “usually doesn’t cover health care while you’re traveling outside the U.S.”, with narrow exceptions, so you’ll need international cover. If you’re near 65, look at the Part B late-enrolment penalty before deciding to skip it: Medicare adds 10% for each full 12-month period you could have signed up but didn’t.
Social Security. The SSA says citizens “may continue to receive payments while outside the U.S.” if they stay eligible and live where payments can be sent. Treasury sanctions block payments to Cuba and North Korea, and SSA restricts payments to Azerbaijan, Belarus, Kazakhstan, Kyrgyzstan, Tajikistan, Turkmenistan and Uzbekistan, with some exceptions. Keep your address current with SSA or payments can stop.
Step 5: voting, mail and pets
Voting. You keep the right to vote in federal elections from abroad. The Federal Post Card Application (FPCA) registers you and requests a ballot. FVAP says to send a new one “every January, each time you move, or at least 90 days prior to the election”. Your voting address is “the last place you lived before moving overseas”, and you don’t need current ties to it. The Federal Write-In Absentee Ballot is the backup if your ballot doesn’t arrive.
Mail. Banks, the IRS and the SSA still send paper. Pick one reliable mailing arrangement, record it everywhere and get it scanned promptly.
Pets. USDA APHIS says to contact a USDA-accredited vet “as soon as you decide to travel”, check the destination’s rules every time, and have the vet submit the health certificate for APHIS endorsement. Dogs going to or from high-rabies-risk countries need a US-issued rabies vaccination certificate before departure, and it “cannot be issued retroactively.”
A note on renunciation
Giving up citizenship ends citizenship-based taxation going forward, but it’s a separate, permanent decision, not part of moving. You attend two interviews with a consular officer abroad, at least one in person, and take the oath in person. The processing fee is $450 from 13 April 2026, down from $2,350, per the State Department’s final rule in the Federal Register. The State Department notes your US tax obligations may remain unchanged after loss of nationality, and some people owe exit tax as “covered expatriates”. Read our exit tax thread before going near it.
Related: US expat taxes (2026): filing, FEIE, FBAR and catching up · FEIE vs Foreign Tax Credit (2026): which one US expats should use · Exit tax explained: which countries charge it when you leave · Digital nomad visa countries: which countries have one (2026 list)
Related guides: Second passport (2026): how to get one by descent, residency or investment · Expat health insurance for digital nomads: SafetyWing vs Genki vs Cigna and more · Puerto Rico Act 60 (2026): 0% capital gains, 4% business tax and the catches · Brokerage accounts for expats (2026): IBKR, Saxo, Swissquote, Schwab · Travelling with a pet as a nomad (2026): rules, airlines and relocation
Quick answers
Q: Do I still have to file US taxes if I move abroad?
Yes. US citizens abroad are taxed on worldwide income and follow the same filing rules as at home. Calendar-year filers living abroad get an automatic extension to June 15, and can request October 15 with Form 4868, but interest on unpaid tax runs from April 15. Foreign accounts over $10,000 in total also need an FBAR.
Q: How do I stop paying California state tax when I move abroad?
California taxes residents who are domiciled there but outside the state temporarily, so you need to shift your real ties: home, family, licence, car registration, voter registration and accounts. A safe harbour treats people abroad under an employment contract for 546 consecutive days as nonresidents, unless intangible income exceeds $200,000 in any year.
Q: How much does it cost to renounce US citizenship?
The State Department fee for processing a Certificate of Loss of Nationality is $450 from 13 April 2026, down from $2,350. You need two interviews with a consular officer abroad, one in person, and an in-person oath. Tax obligations may continue, and covered expatriates can owe exit tax.
Sources
- IRS: U.S. citizens and resident aliens abroad
- IRS: Report of Foreign Bank and Financial Accounts (FBAR)
- IRS: Comparison of Form 8938 and FBAR requirements
- California FTB: Publication 1031, Guidelines for Determining Resident Status (2025)
- California FTB: Residency status
- New York Department of Taxation and Finance: Nonresident FAQs
- Virginia Tax: Residency status
- New Mexico State Records Center: 3.3.1 NMAC, Personal income tax general provisions
- Taxes for Expats: Expat brokerage account 2026 guide
- Medicare.gov: Travel outside the U.S.
- Medicare.gov: Avoid late enrollment penalties
- SSA: Your payments while you are outside the United States (EN-05-10137)
- FVAP: 2026-27 Voting Assistance Guide
- USDA APHIS: Taking a pet from the US to another country
- State Department: Relinquishing U.S. nationality abroad
- Federal Register: Schedule of Fees for Consular Services, CLN fee (13 March 2026)
This is general information from the Nomad Forums team, not immigration, tax or legal advice. Rules change; check the official source or a qualified adviser before applying.
Over to you: If you’ve left a sticky state such as California or New York, what did you do to break domicile, and did the state ever query it? And which US bank or broker kept your account open after you switched to a foreign address?