Quick Answer
To relinquish United States nationality in 2026, I must appear in person at a US embassy or consulate abroad, sign forms DS-4080 and DS-4081 in front of a consular officer, take the oath of renunciation aloud, and pay the new $450 administrative processing fee. The State Department reduced the fee from $2,350 to $450 in a final rule that took effect in 2026.
Renunciation is irreversible. Once the consular officer accepts the oath and the Department of State issues a Certificate of Loss of Nationality (CLN), I am no longer a US citizen and I lose the right to live and work in the United States, vote in federal elections, and receive US consular protection abroad.
Separately from the State Department process, the IRS may classify me as a "covered expatriate" and apply a mark to market exit tax under Internal Revenue Code section 877A. The exit tax is the part of the process that most often catches people by surprise.
What relinquishment actually means
"Relinquishment" is the broader legal category that covers any voluntary act by which a US citizen gives up nationality. The most common form, and the one most people mean when they say renunciation, is a formal oath of renunciation taken before a consular officer abroad under section 349(a)(5) of the Immigration and Nationality Act.
Other relinquishing acts under section 349(a) include serving in the armed forces of a foreign state engaged in hostilities against the United States, accepting policy level employment with a foreign government, and formally swearing allegiance to a foreign state with the specific intent to give up US nationality. All of these can in principle support a Certificate of Loss of Nationality, but in practice the formal oath at a consulate is by far the cleanest and most reliably documented path.
The 2026 fee reduction
For over a decade, the State Department charged $2,350 to process a renunciation. The fee was the highest in the world by a wide margin, and it was the subject of multiple lawsuits arguing that it exceeded the actual cost of the consular labor required and operated as an unconstitutional barrier to expatriation.
The State Department published a final rule reducing the fee to $450, matching the original pre 2014 price. The reduction took effect in 2026 and applies to all renunciation appointments scheduled after the effective date. The Department acknowledged in the rulemaking that the previous fee was significantly above the actual administrative cost.
The step by step consular process
Renunciation cannot be done by mail, by video, by power of attorney, or through a private lawyer. It requires a personal appearance at a US embassy or consulate outside the United States. The typical process from first inquiry to final CLN issuance runs four to twelve months, depending on the post.
- Step 1, request an appointment: I email the citizenship services unit at the embassy or consulate where I want to renounce. Wait times vary from a few weeks at smaller posts to more than a year at high demand posts like London, Toronto, and Bern.
- Step 2, complete the questionnaire: Most posts send a pre interview questionnaire covering my biographical information, my second nationality, my reasons for renouncing, and my understanding of the consequences.
- Step 3, attend the first appointment: Some posts split the process into two appointments, the first focused on confirming voluntariness and reviewing the consequences in detail.
- Step 4, sign and swear at the second appointment: I review and sign DS-4080 (the oath of renunciation) and DS-4081 (the statement of understanding of consequences), take the oath aloud, and surrender my US passport. The consular officer accepts the documents and the $450 fee.
- Step 5, wait for CLN approval: The signed packet is sent to the State Department's Office of Overseas Citizen Services in Washington for final approval. Once approved, the CLN is mailed to me at the address I provided. Loss of nationality is effective as of the date of the oath, not the date of the CLN.
The documents I need at the appointment
Posts vary slightly, but the standard document checklist is consistent across most consulates. I bring originals and one full set of photocopies of each item.
- My current US passport.
- My passport from the other country whose citizenship I currently hold.
- My US birth certificate or Consular Report of Birth Abroad.
- Naturalization documents for the second nationality if applicable.
- Marriage and divorce certificates if my name has changed.
- Two passport size photos for the CLN file.
- The completed pre interview questionnaire provided by the post.
- Payment for the $450 fee in the currency the post accepts.
The IRS exit tax math
The State Department charge is the smaller part of the financial picture. The IRS rules in Internal Revenue Code section 877A apply a hypothetical mark to market sale to my worldwide assets on the day before expatriation if I qualify as a "covered expatriate." I am covered if any one of the following three tests is met:
- Net worth test: My worldwide net worth is $2,000,000 or more on the date of expatriation.
- Income tax liability test: My average annual net US income tax for the five years before expatriation exceeds an inflation adjusted threshold (above $206,000 for recent years).
- Certification test: I fail to certify on IRS Form 8854 that I have complied with all US federal tax obligations for the five years preceding expatriation.
If I am covered, the IRS treats all of my worldwide assets as sold at fair market value on the day before expatriation, and the net gain above an inflation adjusted exclusion (around $890,000 for recent years) is subject to ordinary capital gains tax. Specified tax deferred accounts like traditional IRAs are taxed as if fully distributed. Certain ineligible deferred compensation is subject to a 30 percent withholding regime applied to future distributions.
The exit tax is the single most important financial planning item for any US person considering renunciation. A pre expatriation consultation with a cross border tax attorney or accountant is essential if my net worth approaches the $2 million threshold or my income tax history puts me near the section 877A liability test.
What I lose and what I keep
Once the CLN is issued, I lose the unrestricted right to enter, live, and work in the United States, the right to vote in federal elections, the right to hold a US passport, the protection of US consular services abroad, and access to several federal benefit programs that require citizenship.
I keep any Social Security retirement benefits I have already earned through covered work, subject to the rules that apply to non resident foreign beneficiaries. I can apply to enter the United States as a visitor under the visa rules that apply to citizens of my remaining nationality. I retain ownership of US real estate and US financial assets, although ongoing reporting and withholding rules change.
The takeaway
Relinquishing United States nationality in 2026 is cheaper at the consulate window than it has been in over a decade, with the State Department fee now $450 instead of $2,350. The process itself is irreversible, requires a personal appearance abroad, and is preceded by a careful voluntariness review. The real planning work happens on the IRS side, where the section 877A exit tax can apply a one time mark to market tax on my worldwide assets if I qualify as a covered expatriate. Anyone seriously considering renunciation should run the full tax math with a cross border professional before booking the consular appointment.
