The Foreign Earned Income Exclusion, foreign housing exclusion, and self-employment tax interact in ways that surprise most expats. Enter your numbers to see what helps you — and what's dead weight — at your income level. Updated with 2026 figures.
The housing exclusion only counts costs ABOVE a base floor (~$21,264 in 2026). Spend less than that and your housing exclusion is exactly $0 — the benefit rewards high housing costs, not low ones.
If you're self-employed, the ~15.3% self-employment tax is calculated BEFORE the exclusion. The FEIE can zero your income tax and you'll still owe SE tax. That's usually the real bill.
If the FEIE already zeroes your taxable income, stacking more deductions or a housing exclusion on top saves you nothing — you can't exclude income that's already excluded.