U.S. citizen in the UK: single, virginia, ties kept
Combined marginal rate across this income: 42.0%. 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)
- 84,500 GBP ≈ $112,385
- U.S. ordinary marginal rate
- 22%
- U.S. qualified rate
- 15%
- NIIT exposed
- no
- U.S. state
- Virginia (ties kept)
- UK band
- higher
- UK marginal rate
- 40%
- FIG window
- no
| Income | Amount | U.S. | State | UK | Who taxes | Combined |
|---|---|---|---|---|---|---|
| Bank interest (local) | £500 | 22% | 5.8% | 40% | Residence first, U.S. credits | 45.8% |
| Dividends from U.S. companies | £1,500 | 15% | 5.8% | 35.8% | U.S. first, residence credits | 41.5% |
| Dividends from local companies | £1,500 | 15% | 5.8% | 35.8% | Residence first, U.S. credits | 41.5% |
| Gains on shares sold | £6,000 | 15% | 5.8% | 24% | Residence first, U.S. credits | 29.8% |
| Rent from U.S. property | £15,000 | 22% | 5.8% | 40% | U.S. first, residence credits | 45.8% |
| U.S. Social Security | £36,000 | — | — | 40% | Residence country only | 40% |
| 401(k) / IRA distributions | £24,000 | 22% | 5.8% | 40% | Residence first, U.S. credits | 45.8% |
Why each income is taxed this way
Bank interest (local) · 45.8% · UK taxes first; the U.S. credits UK tax.
- U.S.: Ordinary income, marginal 22%
- State: Virginia resident, up to 5.8%, no credit for foreign tax
- UK: Savings at 40% after the Personal Savings Allowance
- Virginia 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 · 41.5% · U.S. taxes first (15%); the UK credits it; the U.S. credits UK tax above 15%.
- U.S.: Qualified dividends 15%
- State: Virginia resident, up to 5.8%, no credit for foreign tax
- UK: Dividend tax 35.75% (credit for 15% U.S. tax)
- Virginia 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 · 41.5% · UK taxes first; the U.S. credits UK tax.
- U.S.: Qualified dividends 15%
- State: Virginia resident, up to 5.8%, no credit for foreign tax
- UK: Dividend tax 35.75% above £500
- Virginia 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 · 29.8% · UK taxes first; the U.S. credits UK tax.
- U.S.: Long-term gains 15%
- State: Virginia resident, up to 5.8%, no credit for foreign tax
- UK: CGT 24% above £3,000 (non-UK shares exempt during FIG)
- Virginia 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
Rent from U.S. property · 45.8% · U.S. taxes first; the UK credits it.
- U.S.: Net rent at 22%
- State: Virginia resident, up to 5.8%, no credit for foreign tax
- UK: Foreign property income at 40%, credit for U.S. tax
- Virginia resident: state tax is added because states give no credit for foreign tax.
US.WORLDWIDE · US.ORDINARY.2026 · STATE.RESIDENT · STATE.STICKY · GB.INCOME.2026 · GB.PROPERTY · US-GB.ART6
U.S. Social Security · 40% · Taxable only in the UK; the U.S. does not tax it.
- U.S.: Exempt by treaty
- State: Not in federal income
- UK: Taxable only in the UK, at 40%
US.WORLDWIDE · US.ORDINARY.2026 · US.SS.TAXABLE · STATE.RESIDENT · STATE.SS · GB.INCOME.2026 · US-GB.ART17.SS
401(k) / IRA distributions · 45.8% · Taxed in the UK as country of residence; the U.S. also taxes and credits UK tax.
- U.S.: Ordinary income at 22% (not subject to NIIT)
- State: Virginia resident, up to 5.8%, no credit for foreign tax
- UK: Foreign pension at 40%
- Virginia 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.RETIREMENT · STATE.RESIDENT · STATE.STICKY · GB.INCOME.2026 · US-GB.ART17.PENSION · 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 | Schedule E (+ Form 4562) | Rental income and depreciation. |
| IRS | FinCEN 114 (FBAR) | Foreign accounts ≈ $159,600, above $10,000. |
| State | Virginia 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
Virginia can still tax you
Keeping ties makes you a likely Virginia resident: up to 5.8% on top, with no credit for foreign tax. Virginia can treat you as domiciled if you keep a home or ties there.
Rule trace (21 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))
- 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.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-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.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))
- GB.PROPERTY — UK property income. Taxed at 20% / 40% / 45% in 2026/27; separate property rates of 22% / 42% / 47% from April 2027. (medium, checked 2026-11-15 · GOV.UK — Changes to tax rates for property, savings and dividend income (policy paper) (official))
- US-GB.ART6 — Article 6: real property. Rent from U.S. property: U.S. taxes first; the UK credits 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.SS.TAXABLE — Social Security inclusion. Up to 85% of Social Security benefits are taxable at ordinary rates. (high, checked 2026-11-15 · 26 U.S.C. §86 — Social Security benefits (official))
- STATE.SS — Social Security and states. Most states exempt Social Security; in 2026 Colorado, Connecticut, Minnesota, Montana, New Mexico, Rhode Island, Utah and Vermont still tax some benefits. (medium, checked 2026-11-15)
- US-GB.ART17.SS — Article 17(3): U.S. Social Security. U.S. Social Security paid to a UK resident is taxable only in the UK; the U.S. does not tax 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.RETIREMENT — 401(k) / IRA distributions. Traditional account distributions are ordinary income; they are not investment income for the NIIT. (high, checked 2026-11-15 · 26 U.S.C. §1411 — net investment income tax (official))
- US-GB.ART17.PENSION — Article 17: pensions. Pensions are taxed in the country of residence; for U.S. citizens the U.S. also taxes and credits the UK tax. Xpat's reading Xpat's reading: A simplification of Article 17: lump sums, Roth accounts and government pensions follow different paragraphs. (low, 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.SCHE.FOREIGN — Foreign rental property. Report on Schedule E. Foreign residential property is depreciated over 30 years (ADS). (medium, checked 2026-11-15 · 26 U.S.C. §168 — depreciation, alternative system in (g) (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))