U.S. citizen in the UK: single, california, ties kept
Combined marginal rate across this income: 52.2%. Rates are 2026 marginal rates after treaty credits, as an upper bound.
- Residence
- United Kingdom, 6 full year(s)
- U.S. filing status
- Single
- Income (all sources)
- 99,500 GBP ≈ $132,335
- U.S. ordinary marginal rate
- 24%
- U.S. qualified rate
- 15%
- NIIT exposed
- no
- U.S. state
- California (ties kept)
- UK band
- higher
- UK marginal rate
- 40%
- FIG window
- no
| Income | Amount | U.S. | State | UK | Who taxes | Combined |
|---|---|---|---|---|---|---|
| Salary | £90,000 | 24% | 13.3% | 40% | Residence first, U.S. credits | 53.3% |
| Bank interest (local) | £500 | 24% | 13.3% | 40% | Residence first, U.S. credits | 53.3% |
| Dividends from U.S. companies | £1,500 | 15% | 13.3% | 35.8% | U.S. first, residence credits | 49% |
| Dividends from local companies | £1,500 | 15% | 13.3% | 35.8% | Residence first, U.S. credits | 49% |
| Gains on shares sold | £6,000 | 15% | 13.3% | 24% | Residence first, U.S. credits | 37.3% |
Why each income is taxed this way
Salary · 53.3% · Taxed where you work; the U.S. credits that tax (FTC). The FEIE is the alternative.
- U.S.: Ordinary income, marginal 24%
- State: California resident, up to 13.3%, no credit for foreign tax
- UK: Income tax, marginal 40% · social contributions: National Insurance 8% / 2%
- California 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 · STATE.STICKY · GB.INCOME.2026 · GB.NI · US-GB.SAVING · US-GB.ART24 · US.FTC · US.FEIE.2026
Bank interest (local) · 53.3% · UK taxes first; the U.S. credits UK tax.
- U.S.: Ordinary income, marginal 24%
- State: California resident, up to 13.3%, no credit for foreign tax
- UK: Savings at 40% after the Personal Savings Allowance
- California 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 · STATE.STICKY · GB.INCOME.2026 · GB.SAVINGS · US-GB.ART24 · US.FTC
Dividends from U.S. companies · 49% · U.S. taxes first (15%); the UK credits it; the U.S. credits UK tax above 15%.
- U.S.: Qualified dividends 15%
- State: California resident, up to 13.3%, no credit for foreign tax
- UK: Dividend tax 35.75% (credit for 15% U.S. tax)
- California resident: state tax is added because states give no credit for foreign tax.
US.WORLDWIDE · US.QUALIFIED.2026 · STATE.RESIDENT · STATE.STICKY · GB.DIVIDENDS.2026 · US-GB.ART24 · US.FTC
Dividends from local companies · 49% · UK taxes first; the U.S. credits UK tax.
- U.S.: Qualified dividends 15%
- State: California resident, up to 13.3%, no credit for foreign tax
- UK: Dividend tax 35.75% above £500
- California 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.QUALIFIED.2026 · STATE.RESIDENT · STATE.STICKY · GB.DIVIDENDS.2026 · US-GB.ART24 · US.FTC
Gains on shares sold · 37.3% · UK taxes first; the U.S. credits UK tax.
- U.S.: Long-term gains 15%
- State: California resident, up to 13.3%, no credit for foreign tax
- UK: CGT 24% above £3,000 (non-UK shares exempt during FIG)
- California 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.QUALIFIED.2026 · STATE.RESIDENT · STATE.STICKY · GB.CGT.2026 · 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 ≈ $159,600, above $10,000. |
| State | California 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 | SA106 | Foreign income (U.S. dividends, rent, pensions) and foreign tax credit. |
| HMRC | SA108 | Capital gains above the thresholds. |
Watch out for
California can still tax you
Keeping ties makes you a likely California resident: up to 13.3% on top, with no credit for foreign tax. California presumes you remain domiciled unless you clearly cut ties, and gives no credit for foreign tax.
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).
Rule trace (18 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)
- STATE.STICKY — Sticky states. California, Virginia, New Mexico and South Carolina are known for treating former residents as still domiciled. Xpat's reading Xpat's reading: A practitioner's shortlist, not a legal category: these states audit departures more often. (medium, checked 2026-11-15)
- 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.QUALIFIED.2026 — Qualified dividends and long-term gains. 0% / 15% / 20%. Single: 15% from $49,451, 20% from $545,501. Joint: 15% from $98,901, 20% from $613,701. (high, checked 2026-11-15 · IRS — Rev. Proc. 2025-32 (inflation adjustments for 2026) (official) · 26 U.S.C. §1 — tax rates, including capital gains rates in (h) (official))
- GB.DIVIDENDS.2026 — UK dividend tax 2026/27. 10.75% / 35.75% / 39.35% above a £500 allowance. (high, checked 2026-11-15 · GOV.UK — Tax on dividends (official) · GOV.UK — Changes to tax rates for property, savings and dividend income (policy paper) (official))
- GB.CGT.2026 — UK CGT. 18% / 24% above £3,000. (high, checked 2026-11-15 · GOV.UK — Capital Gains Tax rates (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))
- 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))