Expat here, that's not how it works. You have two options when you live/work in another country: Exclude up to about $100k of your foreign income from US taxes

Expat here, that's not how it works. You have two options when you live/work in another country: Exclude up to about $100k of your foreign income from US taxes -- after that you still pay US taxes, and at the rate you would have paid if you were paying from the first dollar, meaning if you make $130K, you don't pay US taxes as if you made $30K, you pay the difference between the taxes on $130K and the taxes on $100K. Deduct whatever you pay in foreign taxes from your US taxes, dollar for dollar. The US is almost the only country that does this. All of my co-workers from Israel, Ukraine, India, and many other places pay generally no taxes in their home countries.