Renouncing U.S. citizenship just got a lot cheaper

On March 13, 2026, the U.S. Department of State published a rule in the Federal Register cutting the administrative fee for a Certificate of Loss of Nationality (CLN) from USD $2,350 to USD $450 — a reduction of more than 80%. The change takes effect on April 13, 2026.

Given that renunciation appointments are typically booked months in advance, anyone starting the process now will almost certainly be seen after April 13 — meaning you would pay the new lower fee regardless. This is good news for anyone who has been on the fence partly due to cost.

The renunciation fee drops from USD $2,350 to USD $450, effective April 13, 2026. The exit tax rules and Form 8854 filing requirements are unchanged.

How we got here

The $450 fee is not new — it was the original rate set in 2010. In 2014, the State Department raised it to $2,350 to reflect the full government cost of processing renunciations, making the U.S. fee the highest of any country in the world by a wide margin. The reversal came after sustained public pressure, hundreds of formal comments during rulemaking, and the Department's frank acknowledgment that FATCA-related banking and compliance burdens have made maintaining U.S. citizenship abroad increasingly difficult. The fee reduction also resolves a years-long legal dispute over the 2014 increase.

The CLN is the official document confirming relinquishment of citizenship — renunciation is not legally complete without it. Removing the cost barrier here is a meaningful change for many people who have been delaying.

What doesn't change

The lower fee changes the cost of the consular step — nothing else. You will still need to appear in person at a U.S. embassy or consulate. The legal process, the State Department requirements, and the oath of renunciation all remain the same.

On the tax side, the exit tax rules and Form 8854 filing requirements are also unchanged. Renunciation always needs to be coordinated with proper U.S. tax advice — that piece belongs with a qualified expatriation tax specialist, and getting it right before you renounce matters.

What this means if you've been considering renunciation

Wait times at U.S. embassies and consulates have been long — often several months — and this fee reduction will likely drive a surge in demand that stretches them further. If completing your renunciation in 2026 is a priority, the right time to start the process is now.

I work with Canadians and clients around the world on the immigration and nationality law side of renunciation — from navigating the State Department process to coordinating with the right tax professionals. If this development has moved you closer to a decision, I am happy to talk through next steps. Reach out to me at sarah@peludimmigration.com.

This post is for informational purposes only and does not constitute legal or tax advice. Renunciation of U.S. citizenship is a significant legal decision — please consult a qualified professional before taking any steps.