Following a long campaign by Americans abroad, the US State Department has finally announced that it will soon slash the high $2,350 citizenship renunciation fee by 80 percent.
The US State department on Thursday announced that the fee for renouncing US citizenship will be cut by 80 percent, ending a six year legal battle by Americans living abroad.
The State department has now formally filed a final rule cutting the cost of renouncing citizenship, known as a Certificate of Loss of Nationality (CLN), from $2,350 to $450.
In a statement, the department said: “After significant deliberation, taking into account both the affected public’s concerns regarding the cost of the fee and the not insignificant anecdotal evidence regarding tax-related difficulties many US nationals residing abroad encounter, including in part because of FATCA, the Department made a policy decision… to propose alleviating the cost burden for those individuals who decide to request CLN services by returning to the below-cost fee of $450.”
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“This action is being taken to help alleviate the cost burden for those individuals who decide to request CLN services by returning to the below-cost fee that was in place from 2010-2014,” it added.
However, Americans abroad impacted by the ruling should note the effective date of implementation will be April 13th 2026, as the ruling specifies that the change will officially enter into force 30 days after publication.
This means that those with a renunciation appointment before April 13th will be charged $2,350.
The new $450 fee will apply to appointments on or after that date.
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Long legal road to renouncement fee cut
The US authorities first said back in 2023 that they were “proposing to amend” the fee, viewed by many Americans abroad as unreasonable, in response to concerns that “members of the public have continued to raise” since the price was hiked from $450 in 2014.
Figures from the Association of Accidental Americans (AAA), a pressure group pivotal in the campaign, show that since that 2023 update, 8,755 individuals have paid the full $2,350 fee, over $20.5 million in income in total.
The AAA has welcomed the decision, claiming the “victory is the direct result of six years of relentless legal action and advocacy.”
“As Thomas Jefferson stated in 1779, voluntary renunciation of one’s nationality is a natural right inherent to all men. The U.S. administration is not above its own Constitution. This fee reduction is a concrete first victory — but our fight to have the right to renounce recognised as a fundamental constitutional right continues,” said Fabien Lehagre, founder and president of the AAA.
Because ‘Accidental Americans’ are US citizens by birth and due to the United States’ citizenship-based tax regime, they are deemed by the US to have tax reporting (and potentially tax-paying) obligations for as long as they live, even if they never set foot in the US.
For many Americans abroad these commitments — as a result of the US’ Citizenship-Based Taxation (CBT) system — have been motivating factors in renouncing their US citizenship.
In its press release, the State Department recognised the tax complications faced by US nationals abroad, suggesting that the issue had been a major point of contention for the many Americans who contributed feedback to the consultation process.
“The overwhelming majority of commenters… including some who did not comment on the proposed fee change at all, expressed frustration with the US system of worldwide taxation of its citizens and the expense associated with compliance with US tax laws. Many reported spending hundreds or thousands of dollars a year on tax professionals, even when they might have no U.S. tax liabilities,” the statement said.
It also noted difficulties opening a bank account, getting a mortgage, or investing for retirement abroad, citing “the not insignificant anecdotal evidence regarding the difficulties many US nationals residing abroad are encountering” when trying to renounce citizenship.
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In 2020, the AAA and Americans of 10 nationalities filed a complaint with a US court questioning the constitutionality of the $2,350 fee.
However, following the 2023 announcement of the department’s intention to cut the cost, it never confirmed the decision.
Then, in June 2025, the AAA contacted Secretary of State Marc Rubio calling for immediate publication of the change, and finally, now, in March 2026, the decision has been confirmed.
READ ALSO: OPINION – Unfair tax policies for Americans abroad must change
