Foreign Income Tax Calculator — Calculate Your Tax Liability & Credits

Foreign Income Tax Calculator

Calculate your foreign income tax liability and understand how tax treaties, foreign tax credits, residency status, and income sources affect your tax obligations.

Step 1: Income & Personal Details

Understanding Foreign Income

Foreign income includes earnings from employment, business, investments, or property located outside your country of tax residence. Different rules apply based on tax treaties and residency status.

Step 2: Tax Details & Credits

About Foreign Tax Credits

The Foreign Tax Credit (FTC) prevents double taxation by allowing you to offset taxes paid to foreign governments against your domestic tax liability. Limits apply based on your total foreign income.

Foreign Tax Calculation Results

Summary
Country Comparison
Tax Analysis

Total Tax Liability

$12,450
After Foreign Tax Credit: $7,450
Total Taxable Income
$62,050
Domestic Tax
$12,450
Foreign Tax Credit
$5,000
Effective Tax Rate
16.6%

International Tax Comparison

Country Tax Rate Range Foreign Income Treatment Tax Treaty Benefits Effective Rate

Tax Liability Analysis

Foreign Tax Calculation Formula

Net Tax = (Taxable Income × Tax Rate) – Foreign Tax Credit – Other Credits

Total tax liability is calculated based on your worldwide income, then reduced by foreign tax credits to avoid double taxation. Tax treaties may further reduce liability through exemptions or reduced rates.

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