The IRS has provided the foreign housing expense exclusion/deduction amounts for tax year 2026. Generally, a qualified individual whose entire tax year is within the applicable period is limited to maximum housing expenses of $39,870 for 2026. Similarly, the computation of the base housing amount is also tied to the maximum foreign earned income exclusion. In fact, the base housing amount is 16-percent of the maximum exclusion amount (computed on a daily basis), multiplied by the number of days in the applicable period that fall within the tax year. The notice also provides a table containing information on adjusted limitations on housing expenses, in lieu of the otherwise applicable limitation of $39,870, for 2026.
Notice 2006-87, 2006-2 CB 766; Notice 2007-25, 2007-1 CB 760; Notice 2007-77, 2007-2 CB 735; Notice 2008-107, 2008-2 CB 1265; Notice 2010-27, I.R.B. 2010-15, 531; Notice 2011-8, I.R.B. 2011-8, 503; Notice 2012-19, I.R.B. 2012-10, 440; Notice 2013-31, I.R.B. 2013-21, 1099; Notice 2014-29, I.R.B. 2014-18, 991; Notice 2015-33, I.R.B. 2015-18, 934; Notice 2016-21, I.R.B. 2016-12, 465; Notice 2017-21, I.R.B. 2017-13, 1026; Notice 2018-44, I.R.B. 2018-21, 611; Notice 2019-24, I.R.B. 2019-14, 932; Notice 2020-13, I.R.B. 2020-11, 502; Notice 2021-18, I.R.B. 2021-18; Notice 2022-10, I.R.B. 2022-10, 815; Notice 2023-26, I.R.B. 2023-13, 577; Notice 2024-31, I.R.B. 2024-15, 869; and Notice 2025-16, 2025-13 I.R.B. 1378 is superseded.
