US Citizens Working in Saudi Arabia
See what you actually take home after US and Saudi Arabia taxes — whether you're already working abroad or planning a move.
Here's what matters most for US citizens working in Saudi Arabia:
- •Saudi Arabia has zero income tax for most expats
- •FEIE can exclude up to ~$126,500 from US taxation if you meet the physical presence test
- •High earning potential with no local income tax
- •US-Saudi Arabia tax treaty helps prevent double taxation
Who taxes you?
As a US citizen working in Saudi Arabia, you're subject to US taxation on worldwide income. Saudi Arabia does not impose income tax on most expatriate workers, making it a tax-efficient destination. The Foreign Earned Income Exclusion (FEIE) can exclude up to approximately $126,500 of foreign earned income from US taxation if you meet the 330-day physical presence test. The US-Saudi Arabia tax treaty provides additional protections.
Common pitfalls
- Not meeting the 330-day physical presence test disqualifies you from FEIE
- State tax obligations may persist if you maintain US state residency
- Cost of living can be high in major cities
- Currency fluctuations between USD and SAR can impact your effective income
Frequently asked questions
Yes. US citizens must file US tax returns regardless of where they live. However, you may not owe US taxes if your income is below the FEIE threshold and you meet the physical presence test.
The FEIE allows you to exclude up to approximately $126,500 (indexed annually) of foreign earned income from US taxation if you meet either the bona fide residence test or the 330-day physical presence test.
Saudi Arabia does not impose income tax on most expatriate workers, making it a tax-efficient destination. However, you still need to file US tax returns and may owe US taxes depending on your income level and FEIE eligibility.
No. Since Saudi Arabia doesn't tax most expatriate income, you'll only be subject to US taxation. The FEIE can exclude up to approximately $126,500 from US taxation if you meet the physical presence test.
State tax obligations may persist if you maintain US state residency. Some states like California and New York may continue to tax foreign earned income even if you're abroad. It's important to understand your state's residency rules.
Official resources
Primary sources:
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