U.S. citizen in the UK: married to a non-u.s. spouse, filing separately, new york, ties kept
Combined marginal rate across this income: 50.9%. Rates are 2026 marginal rates after treaty credits, as an upper bound.
- Residence
- United Kingdom, 1 full year(s)
- U.S. filing status
- Married filing separately
- Income (all sources)
- 90,300 GBP ≈ $120,099
- U.S. ordinary marginal rate
- 22%
- U.S. qualified rate
- 15%
- NIIT exposed
- no
- U.S. state
- New York (ties kept)
- UK band
- higher
- UK marginal rate
- 40%
- FIG window
- yes, year 2 of 4
| Income | Amount | U.S. | State | UK | Who taxes | Combined |
|---|---|---|---|---|---|---|
| Salary | £90,000 | 22% | 10.9% | 40% | Residence first, U.S. credits | 50.9% |
| Bank interest (local) | £300 | 22% | 10.9% | 40% | Residence first, U.S. credits | 50.9% |
Why each income is taxed this way
Salary · 50.9% · Taxed where you work; the U.S. credits that tax (FTC). The FEIE is the alternative.
- U.S.: Ordinary income, marginal 22%
- State: New York resident, up to 10.9%, no credit for foreign tax
- UK: Income tax, marginal 40% · social contributions: National Insurance 8% / 2%
- New York resident: state tax is added because states give no credit for foreign tax.
- Excess foreign credit carries forward 10 years (same category only).
US.WORLDWIDE · US.ORDINARY.2026 · US.STACKING · STATE.RESIDENT · GB.INCOME.2026 · GB.NI · US-GB.SAVING · US-GB.ART24 · US.FTC · US.FEIE.2026
Bank interest (local) · 50.9% · UK taxes first; the U.S. credits UK tax.
- U.S.: Ordinary income, marginal 22%
- State: New York resident, up to 10.9%, no credit for foreign tax
- UK: Savings at 40% after the Personal Savings Allowance
- New York resident: state tax is added because states give no credit for foreign tax.
- Excess foreign credit carries forward 10 years (same category only).
US.WORLDWIDE · US.ORDINARY.2026 · STATE.RESIDENT · GB.INCOME.2026 · GB.SAVINGS · US-GB.ART24 · US.FTC
Forms to file
| IRS | Form 1040 | Every year, wherever you live (June 15 for filers abroad). |
| IRS | Form 1116 | Credit for French/UK tax, by category (general, passive). |
| IRS | FinCEN 114 (FBAR) | Foreign accounts ≈ $26,600, above $10,000. |
| State | New York resident return | Ties kept: the state can still tax you as a resident. |
| HMRC | SA100 | Self Assessment: income not fully taxed through PAYE (register by 5 October). |
| HMRC | SA100 | Supplementary page. |
| HMRC | SA109 | Residence status and FIG claim. |
Watch out for
New York can still tax you
Keeping ties makes you a likely New York resident: up to 10.9% on top, with no credit for foreign tax.
Non-U.S. spouse
Filing separately keeps your spouse's income and accounts out of the U.S. system; joint filing needs an election and brings in their worldwide income.
One social security system
Totalization agreements mean you pay social contributions where you work, not U.S. FICA or self-employment tax (keep a certificate of coverage if self-employed).
FIG regime: year 2 of 4
Foreign (non-UK) income and gains can be exempt from UK tax if you claim; the U.S. still taxes them. Claiming costs your personal allowance and CGT allowance.
Rule trace (16 rules)
- US.WORLDWIDE — Citizenship-based taxation. U.S. citizens and green-card holders report worldwide income every year, wherever they live. (high, checked 2026-11-15 · IRS — U.S. citizens and resident aliens abroad (official))
- US.ORDINARY.2026 — 2026 ordinary income brackets. 10% to 37%. Single: 22% from $50,401, 24% from $105,701, 32% from $201,776. Joint: 22% from $100,801. (high, checked 2026-11-15 · IRS — Rev. Proc. 2025-32 (inflation adjustments for 2026) (official) · Tax Foundation — 2026 brackets (Rev. Proc. 2025-32))
- US.STACKING — FEIE stacking rule. Income excluded with the FEIE still sets the rate on the rest of your income. (medium, checked 2026-11-15 · 26 U.S.C. §911 — foreign earned income exclusion, stacking in (f) (official))
- STATE.RESIDENT — State residency follows your ties. A state can keep taxing your worldwide income while you keep a home, licence or voter registration there. States rarely credit foreign tax. Xpat's reading Xpat's reading: Domicile is decided on facts, state by state. Xpat assumes the state taxes you as a resident whenever you say you kept ties, at its top rate. (medium, checked 2026-11-15 · Tax Foundation — state income tax rates 2026)
- GB.INCOME.2026 — UK income tax 2026/27. 20% to £50,270, 40% to £125,140, then 45%. The £12,570 allowance is withdrawn between £100,000 and £125,140 (60% effective). (high, checked 2026-11-15 · GOV.UK — Income Tax rates and Personal Allowances (official))
- GB.NI — National Insurance. Employees pay 8% to £50,270 and 2% above; self-employed Class 4 6% / 2%. (medium, checked 2026-11-15 · GOV.UK — National Insurance rates and categories (official) · GOV.UK — Self-employed National Insurance rates (official))
- US-GB.SAVING — Saving clause. The U.S. taxes its citizens regardless of the treaty; Article 24 decides who credits whom. (medium, checked 2026-11-15 · IRS — U.S. income tax treaties A to Z (U.K. convention of 2001 and technical explanation) (official) · US citizens in the UK — treaty credit order)
- US-GB.ART24 — Article 24: credit order. UK-source income: UK taxes first, U.S. credits. U.S. dividends: U.S. taxes first up to 15%, UK credits, U.S. credits UK tax above it. (medium, checked 2026-11-15 · IRS — U.S. income tax treaties A to Z (U.K. convention of 2001 and technical explanation) (official) · US citizens in the UK — treaty credit order)
- US.FTC — Foreign Tax Credit. Foreign income tax on foreign-source income is credited against U.S. tax (Form 1116), by category (general, passive). Excess credits carry forward 10 years. (high, checked 2026-11-15 · 26 U.S.C. §901 — foreign tax credit (official) · IRS — Instructions for Form 1116 (Foreign Tax Credit) (official))
- US.FEIE.2026 — Foreign Earned Income Exclusion. Up to $132,900 of foreign wages or self-employment income excluded in 2026 (Form 2555). Not available for pensions or investment income. (high, checked 2026-11-15 · IRS — Rev. Proc. 2025-32 (inflation adjustments for 2026) (official) · IRS — Instructions for Form 2555 (Foreign Earned Income) (official))
- GB.SAVINGS — Savings income. Taxed at your band rate after the Personal Savings Allowance (£1,000 basic, £500 higher, £0 additional). Rates rise 2 points from April 2027. (medium, checked 2026-11-15 · GOV.UK — Tax on savings interest (official) · GOV.UK — Changes to tax rates for property, savings and dividend income (policy paper) (official))
- US.FBAR — FBAR (FinCEN 114). Foreign financial accounts above $10,000 in total at any time. (high, checked 2026-11-15 · FinCEN — Report of Foreign Bank and Financial Accounts (FBAR) (official))
- GB.SA — Self Assessment. A return is needed for income not fully taxed through PAYE (foreign income, rent, self-employment, gains above the thresholds) and to claim FIG. Since 2024/25, high PAYE-only income alone no longer requires one. Register by 5 October, file online by 31 January. (high, checked 2026-11-15 · GOV.UK — Check if you need to send a Self Assessment tax return (official))
- GB.FIG — 4-year FIG regime. New residents (no UK residence in the prior 10 years) can exempt foreign income and gains for 4 tax years, at the cost of the personal allowance and CGT allowance. (high, checked 2026-11-15 · GOV.UK — Check if you can claim the 4-year foreign income and gains regime (official) · GOV.UK — HS266 Foreign income and gains (FIG) regime (2026) (official) · Mishcon de Reya — What is the FIG regime?)
- US.NRA.SPOUSE — Non-U.S. spouse. Married to a non-U.S. person: file separately, or elect to treat the spouse as resident and bring their worldwide income in. (high, checked 2026-11-15 · 26 U.S.C. §6013 — joint returns, election for a nonresident spouse in (g) (official))
- US.TOTALIZATION — Social security totalization. The U.S. has agreements with France and the UK: you pay into one system only (usually where you work). (high, checked 2026-11-15 · SSA — International social security agreements (official))