Notice 2024-31, 2024-15 I.R.B.

SECTION 1. PURPOSE

This notice provides adjustments to the limitation on housing expenses for purposes of section 911 of the Internal Revenue Code for specific locations for 2024. These adjustments are based on geographic differences in housing costs relative to housing costs in the United States.

SECTION 2. BACKGROUND

Section 911 allows a qualified individual to elect to exclude from gross income the foreign earned income and to exclude or deduct the housing cost amount of such individual.

The term “housing cost amount” is generally the total of the housing expenses for the taxable year minus a base housing amount. See § 911(c)(1). For this purpose, the base housing amount for the taxable year is limited to an amount that is tied to the maximum foreign earned income exclusion amount of the qualified individual, which is $126,500 for 2024. See § 911(c)(1)(B). Specifically, the base housing amount is 16 percent of the maximum foreign earned income exclusion amount (computed on a daily basis), multiplied by the number of days in the applicable period that fall within the taxable year. Assuming that the entire taxable year of a qualified individual is within the applicable period, the base housing amount for 2024 is $20,240 ($126,500 x .16).

Similarly, the housing expense amount is also limited, based on a percentage of the maximum foreign earned income exclusion amount. Specifically, the limit on such housing expenses generally equals 30 percent of the maximum foreign earned income exclusion amount (computed on a daily basis), multiplied by the number of days in the applicable period for which the taxpayer is a qualified individual. See § 911(c)(2)(A) and (d)(1). Thus, under this general limitation, a qualified individual whose entire taxable year is within the applicable period is limited to maximum housing expenses of $37,950 ($126,500 x .30) for 2024. However, section 911(c)(2)(B) authorizes the Secretary to issue regulations or other guidance to adjust the percentage under section 911(c)(2)(A)(i) (which determines the limit on housing expenses) based on geographic differences in housing costs relative to housing costs in the United States. Pursuant to this authority, the Department of the Treasury (Treasury Department) and the Internal Revenue Service (IRS) have published annual notices concerning the limitation on the section 911 housing cost amounts since the 2006 taxable year.

For more background on the foreign housing exclusion, see https://www.irs.gov/individuals/international-taxpayers/foreign-housing-exclusion-or-deduction.

SECTION 3. TABLE OF ADJUSTED HOUSING LIMITATIONS FOR 2024

The following table provides adjusted limitations on housing expenses (in lieu of the otherwise applicable limitation of $37,950) for 2024. All amounts are in U.S. dollars.

Country

Location

Limitation on Housing Expenses (full year)

Limitation on Housing Expenses (daily/366 days)

Angola

Luanda

84,000

229.51

Argentina

Buenos Aires

56,500

154.37

Australia

Melbourne

41,500

113.39

Australia

Sydney

67,000

183.06

Bahamas, The

Nassau

49,700

135.79

Bahrain

Bahrain

48,300

131.97

Belgium

Brussels

40,000

109.29

Bermuda

Bermuda

90,000

245.90

Brazil

Sao Paulo

56,600

154.64

Canada

Calgary

39,500

107.92

Canada

Montreal

54,000

147.54

Canada

Ottawa

48,100

131.42

Canada

Toronto

61,900

169.13

Canada

Vancouver

61,000

166.67

Canada

Victoria

42,200

115.30

Cayman Islands

Grand Cayman

48,000

131.15

China

Beijing

68,000

185.79

China

Hong Kong

114,300

312.30

China

Shanghai

57,001

155.74

Colombia

Bogota

58,700

160.38

Colombia

All cities other than Bogota

49,400

134.97

Democratic Republic of the Congo

Kinshasa

42,000

114.75

Denmark

Copenhagen

43,704

119.41

Dominican Republic

Santo Domingo

45,500

124.32

Ecuador

Quito

38,200

104.37

Estonia

Tallinn

46,600

127.32

France

Garches

68,600

187.43

France

Paris

68,600

187.43

France

Sevres

68,600

187.43

France

Suresnes

68,600

187.43

France

Versailles

68,600

187.43

Germany

Berlin

41,100

112.30

Germany

Boeblingen

41,000

112.02

Germany

Bonn

42,000

114.75

Germany

Cologne

56,200

153.55

Germany

Gelnhausen

42,400

115.85

Germany

Hanau

42,400

115.85

Germany

Ingolstadt

48,100

131.42

Germany

Kaiserslautern and Landkreis

41,300

112.84

Germany

Ludwigsburg

41,000

112.02

Germany

Mainz

46,000

125.68

Germany

Munich

48,100

131.42

Germany

Nellingen

41,000

112.02

Germany

Pirmasens

41,300

112.84

Germany

Sembach

41,300

112.84

Germany

Stuttgart

41,000

112.02

Germany

Wahn

42,000

114.75

Germany

Wiesbaden

46,000

125.68

Germany

Zweibrucken

41,300

112.84

Guatemala

Guatemala City

42,000

114.75

Guinea

Conakry

51,300

140.16

Holy See, The

Holy See, The

45,700

124.86

India

Mumbai

67,920

185.57

India

New Delhi

56,124

153.34

Ireland

Dublin

39,700

108.47

Israel

Beer Sheva

54,800

149.73

Israel

Jerusalem

49,000

133.88

Israel

Tel Aviv

50,800

138.80

Israel

West Bank

49,000

133.88

Italy

Genoa

41,800

114.21

Italy

La Spezia

40,400

110.38

Italy

Milan

68,300

186.61

Italy

Naples

46,900

128.14

Italy

Rome

45,700

124.86

Italy

Vicenza

38,100

104.10

Jamaica

Kingston

41,200

112.57

Japan

Gifu

74,300

203.01

Japan

Komaki

74,300

203.01

Japan

Nagoya

74,300

203.01

Japan

Okinawa Prefecture

44,800

122.40

Japan

Osaka-Kobe

90,664

247.72

Japan

Tokyo

73,100

199.73

Japan

Yokohama

39,000

106.56

Japan

Yokosuka

42,000

114.75

Kazakhstan

Almaty

48,000

131.15

Korea

Camp Colbern

54,200

148.09

Korea

Camp Market

49,200

134.43

Korea

Camp Mercer

54,200

148.09

Korea

K-16

49,200

134.43

Korea

Kimpo Airfield

49,200

134.43

Korea

Seoul

49,200

134.43

Korea

Suwon

49,200

134.43

Kuwait

Kuwait City

64,400

175.96

Kuwait

All cities other than Kuwait City

57,700

157.65

Malaysia

Kuala Lumpur

46,200

126.23

Malta

Malta

55,100

150.55

Mexico

Mexico City

47,900

130.87

Mexico

All cities other than Ciudad Juarez, Cuernavaca, Guadalajara, Hermosillo, Matamoros, Mazatlan, Merida, Metapa, Mexico City, Monterrey, Nogales, Nuevo Laredo, Tijuana, and Veracruz

39,400

107.65

Mozambique

Maputo

39,500

107.92

Netherlands

Amsterdam

52,900

144.54

Netherlands

Aruba

39,300

107.38

Netherlands

Hague, The

54,500

148.91

Netherlands

Schiphol

52,900

144.54

Netherlands Antilles

Curacao

45,800

125.14

Oman

Muscat

41,300

112.84

Panama

Panama City

39,500

107.92

Peru

Lima

39,100

106.83

Poland

Warsaw

56,500

154.37

Portugal

Alverca

41,800

114.21

Portugal

Lisbon

41,800

114.21

Qatar

Doha

45,888

125.38

Romania

Bucharest

41,200

112.57

Russia

Moscow

108,000

295.08

Russia

Saint Petersburg

60,000

163.93

Saudi Arabia

Riyadh

40,000

109.29

Singapore

Singapore

84,100

229.78

Slovenia

Ljubljana

47,900

130.87

South Africa

Pretoria

39,300

107.38

Spain

Barcelona

40,600

110.93

Spain

Madrid

55,700

152.19

Switzerland

Bern

75,500

206.28

Switzerland

Geneva

107,400

293.44

Switzerland

Zurich

39,219

107.16

Taiwan

Taipei

46,188

126.20

Tanzania

Dar Es Salaam

44,000

120.22

Thailand

Bangkok

59,000

161.20

Trinidad and Tobago

Port of Spain

54,500

148.91

Ukraine

Kiev

72,000

196.72

United Arab Emirates

Abu Dhabi

49,687

135.76

United Arab Emirates

Dubai

57,174

156.21

United Kingdom

Basingstoke

41,099

112.29

United Kingdom

Bath

41,000

112.02

United Kingdom

Bracknell

62,100

169.67

United Kingdom

Caversham

73,800

201.64

United Kingdom

Cheltenham

47,300

129.23

United Kingdom

Farnborough

54,700

149.45

United Kingdom

Gibraltar

44,616

121.90

United Kingdom

Harrogate

43,200

118.03

United Kingdom

High Wycombe

62,100

169.67

United Kingdom

Lakenheath

44,300

121.04

United Kingdom

London

67,000

183.06

United Kingdom

Loudwater

54,300

148.36

United Kingdom

Menwith Hill

43,200

118.03

United Kingdom

Mildenhall

44,300

121.04

United Kingdom

Reading

62,100

169.67

United Kingdom

Southampton

44,200

120.77

United Kingdom

Surrey

48,402

132.25

Venezuela

Caracas

57,000

155.74

Vietnam

Hanoi

46,800

127.87

Vietnam

Ho Chi Minh City

42,000

114.75

SECTION 4. OPTION TO APPLY 2024 ADJUSTED HOUSING LIMITATIONS TO 2023 TAXABLE YEAR

For some locations, the limitation on housing expenses provided in Section 3 of this notice may be higher than the limitation on housing expenses provided in the “Table of Adjusted Limitations for 2023” in Notice 2023-26, 2023-13 I.R.B. 577. A qualified individual incurring housing expenses in such a location during 2023 may apply the adjusted limitation on housing expenses provided in Section 3 of this notice for 2024 in lieu of the amounts provided in the “Table of Adjusted Limitations for 2023” in Notice 2023-26 (and as set forth in the Instructions to Form 2555, Foreign Earned Income, for 2023).

The Treasury Department and the IRS anticipate that future annual notices providing adjustments to housing expense limitations will make a similar option available to qualified individuals that incur housing expenses in the immediately preceding year. For example, when adjusted housing expense limitations for 2025 are issued, it is expected that taxpayers will be permitted to apply those adjusted limitations to the 2024 taxable year.

SECTION 5. EFFECT ON OTHER DOCUMENTS

This notice supersedes Notice 2023-26, 2023-13 I.R.B. 577.

SECTION 6. EFFECTIVE DATE

This notice is effective for taxable years beginning on or after January 1, 2024. However, as provided in Section 4, taxpayers may apply the 2024 adjusted housing limitations contained in Section 3 of this notice to taxable year beginning in 2023.

SECTION 7. DRAFTING INFORMATION

The principal author of this notice is Kate Y. Hwa of the Office of Associate Chief Counsel (International). For further information regarding this notice, contact Kate Y. Hwa at (202) 317-5001 (not a toll-free number).