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183-Day Rule

Posted on October 16, 2025 by user

183-Day Rule: Definition and How It Affects Tax Residency

Key takeaways

  • The 183-day rule is a common threshold used by many countries to decide whether an individual is a tax resident—generally meaning presence for 183 days or more in a year.
  • The U.S. uses a more complex “substantial presence test” that weights days present over three years.
  • Certain days do not count toward the IRS test (commuting exceptions, transit, medical inability to leave, some visa categories).
  • States have varying rules for residency; some use a 183-day standard and others apply different tests or reciprocity agreements.
  • U.S. citizens and permanent residents generally file U.S. tax returns regardless of time abroad, but may qualify for the foreign earned income exclusion if they meet a separate physical presence or bona fide residence test.

What the 183-day rule means

Many countries consider someone a tax resident if they spend 183 days or more in the country during a defined period (calendar year or fiscal year). Residency usually subjects the person to that country’s tax rules on worldwide or local-source income. Some jurisdictions use shorter thresholds (for example, Switzerland may use 90 days).

U.S. approach: the substantial presence test

The IRS does not rely on a simple 183-day count. To be treated as a U.S. resident for tax purposes under the substantial presence test you must:
1. Be physically present in the U.S. at least 31 days during the current year; and
2. Have a weighted total of at least 183 days for the current year and the two preceding years, calculated as:
* All days present in the current year, plus
* One-third of days present in the previous year, plus
* One-sixth of days present in the year before that.

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If the sum is 183 days or more and the 31-day requirement is met, you are generally considered a U.S. tax resident.

Example calculation

  • Current year (Year 3): 120 days
  • Prior year (Year 2): 120 days → 1/3 × 120 = 40
  • Two years prior (Year 1): 120 days → 1/6 × 120 = 20
    Weighted total = 120 + 40 + 20 = 180 → below 183, so not a resident under the test.

Adjust the numbers accordingly to determine residency status for your situation.

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Days that do not count for the IRS test

Certain days are excluded from the IRS day count:
* Regular commuter days to the U.S. from Canada or Mexico.
Days in transit through the U.S. for less than 24 hours between two other countries.
Days as a crew member of a foreign vessel.
Days you cannot leave because of a medical condition that arose while in the U.S.
Days you qualify as exempt (examples: certain foreign government officials on A or G visas; teachers/trainees on J or Q visas; students on F, J, M, or Q visas; some temporary exceptions for athletes competing for charity).

U.S. citizens, permanent residents, and foreign earned income

U.S. citizens and lawful permanent residents (green card holders) are subject to U.S. tax on worldwide income regardless of physical presence. However, they may exclude some foreign-earned income if they meet qualifying tests:
* Physical presence test: 330 full days in any 12 consecutive months in a foreign country.
* Bona fide residence test: establishing bona fide residence in a foreign country for an uninterrupted period that includes a full tax year (different criteria).

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For 2024, the foreign earned income exclusion ceiling was $126,500. Rules and amounts change, so confirm current limits if applicable.

Note: Income earned while residing in another country in violation of U.S. law may not qualify for exclusions.

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State residency and taxation

States determine residency under their own rules. Many use a version of a 183-day rule, but definitions of what counts as a day vary:
* Some states count any presence during the day (New York is notably strict).
* Others have reciprocity or commuter agreements so you pay tax only to your state of domicile.
Check the specific laws of each state where you spend time.

Tax treaties and double taxation

The U.S. has tax treaties with many countries to resolve conflicting residency claims and reduce double taxation. Treaties often provide tie-breaker rules for determining residency and special exemptions. Consult treaty text or a tax advisor when you have cross-border ties.

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Practical tips

  • Track travel dates precisely (arrival and departure times can matter).
  • Apply the IRS three-year weighted formula carefully if you spend time in the U.S. across multiple years.
  • If you work near a border, review commuting rules and state reciprocity agreements.
  • If you expect to qualify for foreign earned income exclusion, document the 330-day or bona fide residence requirements.
  • For complex or high-stakes situations, consult a tax professional with cross-border experience.

Bottom line

The 183-day rule is a common shortcut for determining tax residency, but details vary by country. In the U.S., the substantial presence test uses a weighted three-year formula and several day exclusions. State rules and tax treaties add further complexity, so accurate record-keeping and professional advice are often necessary to determine your tax obligations.

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