Totalization agreements: which country gets your social security tax

The problem these agreements solve

Americans working overseas can end up owing social security tax twice on the same pay: once to the United States, because U.S. citizens and residents are taxed on worldwide income, and once to the country where the work happens. The publication explains that the United States has entered into agreements with some foreign countries to coordinate social security coverage and taxation of workers employed in those countries. They are commonly called totalization agreements. Under them, dual coverage and dual contributions for the same work are eliminated, and the agreements generally make sure you pay social security taxes to only one country.

A reminder before going further: the foreign earned income exclusion is an income tax benefit. It does nothing for social security or Medicare tax. Whether those taxes are owed, and to which country, is decided by the rules below and by the specific agreement.

Two default patterns

The publication states the general rule first. Under these agreements you will generally be subject to social security taxes only in the country where you are working. The exception is the temporary assignment. If you are temporarily sent to work in a foreign country and your pay would otherwise be subject to social security taxes in both the United States and that country, you can generally remain covered by U.S. social security alone.

So the two patterns are different in kind. A local hire or a long-term transfer is typically covered abroad. A short secondment from a U.S. employer typically stays in the U.S. system. What counts as temporary, and which countries have agreements at all, differs by agreement; the publication points to the Social Security Administration's agreement descriptions and to the IRS totalization page for the specifics.

Covered by the United States only

If your pay in the foreign country is subject only to U.S. social security tax and is exempt from foreign social security tax, your employer should get a certificate of coverage from the SSA's Office of Earnings and International Operations. The publication notes that employers can request that certificate online. The certificate is the document that tells the foreign authorities not to collect their tax on your wages.

Covered by the foreign country only

If you work permanently in a foreign country that has an agreement with the United States and, under the agreement, your pay is exempt from U.S. social security tax, you or your employer should get a statement from the authorized official or agency of the foreign country confirming that your pay is subject to social security coverage there. If the foreign authorities will not issue one, either you or your employer should get a statement from the SSA's Office of Earnings and International Operations indicating that your wages are not covered by the U.S. system. The employer should keep it, because it is what establishes the exemption from U.S. social security tax.

One timing limit appears in the publication: only wages paid on or after the effective date of the agreement can be exempt from U.S. social security tax. Pay from before that date stays in the U.S. system even if the agreement would have covered it afterwards.

Self-employed people

The rules for self-employment tax are generally the same whether you live in the United States or abroad. It is a social security and Medicare tax on net earnings from self-employment, and you must pay it if those earnings are at least $400. The publication also says that you must take all of your self-employment income into account, even income exempt from income tax under the foreign earned income exclusion.

Its example: you run a consulting business abroad, with foreign earned income of $95,000 and business deductions of $27,000. Net profit is $68,000, and self-employment tax applies to that $68,000 even though you qualify for the exclusion. Enter 95000 and 27000 in the calculator to see that figure. For people already facing dual taxation, the publication says that as a general rule a self-employed person will be covered only by the social security system of the country where they reside, and that you should request a certificate of coverage from the SSA's Office of Earnings and International Operations if your self-employment earnings should be exempt from foreign tax and subject only to U.S. self-employment tax. For the U.S. side of the arithmetic, the self-employment tax calculator can be used with the net profit shown here.

Limits of this page

This page summarizes how the publication frames the agreements. It does not list the agreement countries or say how any one agreement defines a temporary assignment. For that, use the SSA and IRS pages the publication cites, and keep the certificate or statement with your records. For the income tax side of living abroad, see the pages on the bona fide residence test and the 330-day physical presence calculator.

Sources

• IRS Publication 54, Tax Guide for U.S. Citizens and Resident Aliens Abroad (12/2025): Chapter 2: Bilateral Social Security (Totalization) Agreements; Chapter 3: Effect of Exclusion; Exemption From Dual-Country Social Security and Medicare Taxes. Read November 2, 2026.

Edition read: Publication 54 (12/2025), Tax Guide for U.S. Citizens and Resident Aliens Abroad. This edition is a continuous-use revision and no longer prints annual inflation-adjusted amounts such as the maximum exclusion; dollar figures on this page are the ones printed in the publication's own examples. Check the current publication, Form 2555 instructions and form instructions for your tax year. This page summarizes the publication and does not replace it.