US citizens and green card holders in Dubai, Abu Dhabi and across the UAE
US Taxes for Americans in Dubai and the UAE
The UAE has no income tax on individuals, but the US still taxes its citizens on worldwide income. We prepare your US returns, and Canadian returns if you also file in Canada. We do not prepare UAE returns, so keep a local adviser for UAE tax, as Gurleen Kaur is not licensed there.
Quick answer
Do Americans in Dubai pay US tax?
They still file. The UAE does not levy income tax on individuals (UAE Government), so there is usually no UAE income tax to credit against US tax. That makes the foreign earned income exclusion and the housing exclusion the main tools for wages (IRS, IRS). The IRS treaty list does not show a US-UAE income tax treaty (IRS), and the SSA list does not show a social security agreement (SSA).
At a glance
- UAE tax on salary
- None on individuals
- Main US tool
- Foreign earned income and housing exclusions
- Income tax treaty
- None on the IRS list
- Social security agreement
- None on the SSA list
- Source
- UAE Government, IRS, checked November 2, 2026
What usually applies
| Situation | What it can mean for your US filing | Source |
|---|---|---|
| Salary from a UAE employer | Form 1040 with Form 2555. The exclusion is US$130,000 for 2025 and US$132,900 for 2026, and the housing exclusion may add to it | IRS, IRS |
| Income above the exclusion, or investment income | US tax may be due, with little or no UAE income tax to credit | IRS |
| Self-employed or a freelancer | Self-employment tax generally applies the same way abroad, at US$400 or more of net earnings. No agreement is on the SSA list to change that, and the exclusion generally does not remove it | Publication 54, SSA |
| You own a free zone or mainland company | Form 5471 is likely if you control it, and section 951A and Subpart F questions can follow | IRS |
| UAE bank and brokerage accounts | FBAR over US$10,000 in total; Form 8938 above the abroad thresholds | IRS, IRS |
UAE corporate tax and your US filing
The UAE charges corporate tax at 9% on taxable income above AED 375,000, for financial years starting on or after June 1, 2023 (UAE Government). A qualifying free zone person can have 0% on qualifying income (UAE tax authority). Salary is outside corporate tax (UAE tax authority).
A low rate can leave a US shareholder with little foreign tax to use against US tax on the company's income. We review this for your company.
Your former US state
Moving abroad does not always end your tax residence in your former US state, and state rules differ. If you kept a home or other ties, check the rules of that state before you stop filing there.
Tools and next steps
Tools: Form 5471 checker, FBAR calculator and Streamlined checker. Behind on filings? See IRS amnesty and Streamlined. Want it handled every year? See the yearly package for Americans abroad.
How it works
- Send your request. Tell us where you live, what you earn and what you own, using the form below.
- Review and fixed quote. We review your last returns and give you a written scope and fee.
- Preparation and review. We prepare your US forms and go through them with you remotely.
- Filing. Your forms are filed, and your file carries forward to next year.
Please do not send tax IDs or statements through the website form. If we work together, documents come in through our secure client portal.
Common questions
Is my Dubai salary tax free in the US?
Not automatically. You file a US return and may exclude it under the foreign earned income exclusion, up to the limit, if you qualify.
Is there a US-UAE tax treaty?
The IRS list of income tax treaties does not show one.
Do you handle my UAE company filings?
No. We prepare your US returns, and Canadian returns if you also file in Canada. Keep a local adviser for UAE corporate tax and licensing.
Do I pay self-employment tax in Dubai?
Generally yes, if your net earnings are US$400 or more. The rules are generally the same abroad, and the SSA list shows no agreement with the UAE.
Does a free zone company avoid US reporting?
No. A US citizen who controls a foreign company is generally a Form 5471 filer, wherever it is registered.
Sources
Every rule and figure on this page links to the IRS, CRA or other official source it comes from. Amounts change; we re-check them before each engagement.
- UAE Government: Taxation
- UAE Government: Corporate tax (updated October 28, 2026)
- UAE Federal Tax Authority: Taxation of natural persons bulletin
- UAE Federal Tax Authority: Free zone persons bulletin
- IRS: United States income tax treaties, A to Z (reviewed January 3, 2026)
- SSA: International Social Security agreements, POMS GN 01701.005
- IRS: Foreign earned income exclusion (reviewed June 12, 2026)
- IRS: Foreign housing exclusion or deduction (reviewed February 9, 2026)
- IRS: Publication 54, Tax Guide for US Citizens and Resident Aliens Abroad
- IRS: Report of Foreign Bank and Financial Accounts (FBAR)
- IRS: Instructions for Form 8938
- IRS: Instructions for Form 5471
Gurleen Kaur, CPA licensed in British Columbia and Washington State. Last updated November 2, 2026. This page is general information, not tax or legal advice for your situation.
Related guides: Yearly package, Americans abroad, Form 5471 service, FBAR requirements, IRS amnesty and Streamlined.
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