US Citizens Working in Thailand
See what you actually take home after US and Thailand taxes — whether you're already working abroad or planning a move.
Here's what matters most for US citizens working in Thailand:
- •Thailand has progressive income tax rates up to 35%
- •FEIE can exclude up to ~$126,500 from US taxation if you meet the physical presence test
- •Cost of living in Thailand is very low, significantly increasing purchasing power
- •US-Thailand tax treaty helps prevent double taxation
Who taxes you?
As a US citizen working in Thailand, you're subject to taxation by both countries. The US taxes citizens on worldwide income, but the Foreign Earned Income Exclusion (FEIE) can exclude up to approximately $126,500 of foreign earned income if you meet the 330-day physical presence test. Thailand taxes residents on Thai-sourced income with progressive rates up to 35%. The cost of living in Thailand is very low compared to the US, which significantly increases your purchasing power. The US-Thailand tax treaty provides foreign tax credits to prevent double taxation.
Common pitfalls
- Not meeting the 330-day physical presence test disqualifies you from FEIE
- Thai tax rates can be complex with various deductions and exemptions
- State tax obligations may persist if you maintain US state residency
- Currency fluctuations between USD and THB can impact your effective income
- Work permit and visa requirements can be complex
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.
Thailand has a progressive income tax system with rates from 0% to 35%. Various deductions and exemptions may apply. You can claim foreign tax credits on your US return to offset taxes paid to Thailand.
Cost of living in Thailand is very low compared to the US. Your purchasing power can be 2-3x higher depending on the city. Major cities typically have a cost of living index around 40-50% of New York City.
Generally no. The US-Thailand tax treaty and foreign tax credits help prevent double taxation. You'll typically pay the higher of the two tax rates, not both.
Official resources
Primary sources:
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