This notice provides adjustments to the limitation on housing expenses for purposes of section 911 of the Internal Revenue Code (Code) for specific locations for 2008. These adjustments are made on the basis of geographic differences in housing costs relative to housing costs in the United States.
Section 911(a) of the Code allows a qualified individual to elect to exclude from gross income the foreign earned income and housing cost amount of such individual. Section 911(c)(1) defines the term “housing cost amount” as an amount equal to the excess of (A) the housing expenses of an individual for the taxable year to the extent such expenses do not exceed the amount determined under section 911(c)(2), over (B) 16 percent of the exclusion amount (computed on a daily basis) in effect under section 911(b)(2)(D) for the calendar year in which such taxable year begins ($239.34 per day for 2008, or $87,600 for the full year), multiplied by the number of days of that taxable year within the applicable period described in section 911(d)(1). The applicable period is the period during which the individual meets the tax home requirement of section 911(d)(1) and either the bona fide residence requirement of section 911(d)(1)(A) or the physical presence requirement of section 911(d)(1)(B). Assuming that the entire taxable year of a qualified individual is within the applicable period, the section 911(c)(1)(B) amount for 2008 is $14,016 ($87,600 x .16).
Section 911(c)(2)(A) of the Code limits the housing expenses taken into account in section 911(c)(1)(A) to an amount equal to (i) 30 percent (adjusted as may be provided under the Secretary’s authority under section 911(c)(2)(B)) of the amount in effect under section 911(b)(2)(D) for the calendar year in which the taxable year of the individual begins, multiplied by (ii) the number of days of that taxable year within the applicable period described in section 911(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 $26,280 ($87,600 x .30) in 2008.
Section 911(c)(2)(B) of the Code authorizes the Secretary to issue regulations or other guidance to adjust the percentage under section 911(c)(2)(A)(i) based on geographic differences in housing costs relative to housing costs in the United States. Pursuant to this authority, the Internal Revenue Service (IRS) and the Treasury Department published Notice 2006-87, 2006-2 C.B. 766, and Notice 2007-25, 2007-12 I.R.B. 760, for 2006, and Notice 2007-77, 2007-40 I.R.B. 735, for 2007, to provide adjustments to the limitation on housing expenses for qualified individuals incurring housing expenses in countries with high housing costs relative to housing costs in the United States.
The following table provides adjusted limitations on housing expenses (in lieu of the otherwise applicable limitation of $26,280) for 2008.
Country | Location | Limitation on Housing Expenses (daily) | Limitation on Housing Expenses (full year) |
---|---|---|---|
Argentina | Buenos Aires | 125.96 | 46,100 |
Australia | Brisbane | 81.42 | 29,800 |
Australia | Canberra | 76.50 | 28,000 |
Australia | Gold Coast | 81.42 | 29,800 |
Australia | Melbourne | 78.96 | 28,900 |
Australia | Oakey | 81.42 | 29,800 |
Australia | Perth | 118.85 | 43,500 |
Australia | Toowoomba | 81.42 | 29,800 |
Austria | Vienna | 96.72 | 35,400 |
Bahamas, The | Nassau | 135.79 | 49,700 |
Bahrain | Bahrain | 120.22 | 44,000 |
Barbados | Barbados | 103.01 | 37,700 |
Belgium | Antwerp | 116.67 | 42,700 |
Belgium | Brussels | 157.65 | 57,700 |
Belgium | Gosselies | 110.11 | 40,300 |
Belgium | Hoogbuul | 116.67 | 42,700 |
Belgium | Mons | 110.11 | 40,300 |
Belgium | SHAPE/Chievres | 110.11 | 40,300 |
Bermuda | Bermuda | 245.90 | 90,000 |
Bosnia-Herzegovina | Sarajevo | 89.89 | 32,900 |
Brazil | Brasilia | 121.31 | 44,400 |
Brazil | Rio de Janeiro | 95.90 | 35,100 |
Brazil | Sao Paulo | 127.05 | 46,500 |
Canada | Calgary | 110.93 | 40,600 |
Canada | Dartmouth | 95.63 | 35,000 |
Canada | Edmonton | 100.82 | 36,900 |
Canada | Halifax | 95.63 | 35,000 |
Canada | London, Ontario | 81.42 | 29,800 |
Canada | Montreal | 158.20 | 57,900 |
Canada | Ottawa | 130.87 | 47,900 |
Canada | Toronto | 129.78 | 47,500 |
Canada | Vancouver | 125.68 | 46,000 |
Canada | Victoria | 95.08 | 34,800 |
Canada | Winnipeg | 82.51 | 30,200 |
Cayman Islands | Grand Cayman | 131.15 | 48,000 |
Chile | Santiago | 124.32 | 45,500 |
China | Beijing | 134.25 | 49,137 |
China | Hong Kong | 312.30 | 114,300 |
China | Shanghai | 155.74 | 57,001 |
Colombia | Bogota | 147.81 | 54,100 |
Colombia | All cities other than Bogota and Barranquilla. | 122.68 | 44,900 |
Denmark | Copenhagen | 119.41 | 43,704 |
Dominican Republic | Santo Domingo | 124.32 | 45,500 |
Ecuador | Guayaquil | 84.15 | 30,800 |
Ecuador | Quito | 83.33 | 30,500 |
Egypt | Cairo | 74.43 | 27,240 |
Estonia | Tallinn | 127.32 | 46,600 |
France | Garches | 273.50 | 100,100 |
France | Le Havre | 114.75 | 42,000 |
France | Lyon | 155.46 | 56,900 |
France | Marseille | 143.17 | 52,400 |
France | Montpellier | 126.78 | 46,400 |
France | Paris | 273.50 | 100,100 |
France | Sevres | 273.50 | 100,100 |
France | Suresnes | 273.50 | 100,100 |
France | Versailles | 273.50 | 100,100 |
Germany | Babenhausen | 134.15 | 49,100 |
Germany | Bad Aibling | 114.48 | 41,900 |
Germany | Bad Nauheim | 107.10 | 39,200 |
Germany | Baumholder | 121.86 | 44,600 |
Germany | Berlin | 163.93 | 60,000 |
Germany | Birkenfeld | 121.86 | 44,600 |
Germany | Boeblingen | 145.90 | 53,400 |
Germany | Butzbach | 104.92 | 38,400 |
Germany | Darmstadt | 134.15 | 49,100 |
Germany | Erlangen | 84.97 | 31,100 |
Germany | Frankfurt am Main | 139.89 | 51,200 |
Germany | Friedberg | 107.10 | 39,200 |
Germany | Fuerth | 84.97 | 31,100 |
Germany | Garmisch-Partenkirchen | 115.85 | 42,400 |
Germany | Geilenkirchen | 92.35 | 33,800 |
Germany | Gelnhausen | 145.08 | 53,100 |
Germany | Germersheim | 101.91 | 37,300 |
Germany | Giebelstadt | 116.39 | 42,600 |
Germany | Giessen | 104.92 | 38,400 |
Germany | Grafenwoehr | 114.48 | 41,900 |
Germany | Hanau | 145.08 | 53,100 |
Germany | Hannover | 100.00 | 36,600 |
Germany | Heidelberg | 133.88 | 49,000 |
Germany | Idar-Oberstein | 121.86 | 44,600 |
Germany | Ingolstadt | 169.40 | 62,000 |
Germany | Kaiserslautern, Landkreis | 149.18 | 54,600 |
Germany | Kitzingen | 116.39 | 42,600 |
Germany | Leimen | 133.88 | 49,000 |
Germany | Ludwigsburg | 145.90 | 53,400 |
Germany | Mainz | 164.48 | 60,200 |
Germany | Mannheim | 133.88 | 49,000 |
Germany | Munich | 169.40 | 62,000 |
Germany | Nellingen | 145.90 | 53,400 |
Germany | Neubruecke | 121.86 | 44,600 |
Germany | Nuernberg | 84.97 | 31,100 |
Germany | Ober Ramstadt | 134.15 | 49,100 |
Germany | Oberammergau | 115.85 | 42,400 |
Germany | Pirmasens | 149.18 | 54,600 |
Germany | Rheinau | 133.88 | 49,000 |
Germany | Schwabach | 84.97 | 31,100 |
Germany | Schwetzingen | 133.88 | 49,000 |
Germany | Seckenheim | 133.88 | 49,000 |
Germany | Sembach | 149.18 | 54,600 |
Germany | Stuttgart | 145.90 | 53,400 |
Germany | Wertheim | 116.39 | 42,600 |
Germany | Wiesbaden | 164.48 | 60,200 |
Germany | Wuerzburg | 116.39 | 42,600 |
Germany | Zimdorf | 84.97 | 31,100 |
Germany | Zweibrueken | 149.18 | 54,600 |
Germany | All cities other than Augsburg, Babenhausen, Bad Aibling, Bad Kreuznach, Bad Nauheim, Baumholder, Berchtesgaden, Berlin, Birkenfeld, Boeblingen, Bonn, Bremen, Bremerhaven, Butzbach, Cologne, Darmstadt, Delmenhorst, Duesseldorf, Erlangen, Flensburg, Frankfurt am Main, Friedberg, Fuerth, Garlstedt, Garmisch-Partenkirchen, Geilenkirchen, Gelnhausen, Germersheim, Giebelstadt, Giessen, Grafenwoehr, Grefrath, Greven, Gruenstadt, Hamburg, Hanau, Handorf, Hannover, Heidelberg, Heilbronn, Herongen, Idar-Oberstein, Ingolstadt, Kaiserslautern, Landkreis, Kalkar, Karlsruhe, Kerpen, Kitzingen, Koblenz, Leimen, Leipzig, Ludwigsburg, Mainz, Mannheim, Mayen, Moenchen-Gladbach, Muenster, Munich, Nellingen, Neubruecke, Noervenich, Nuernberg, Ober Ramstadt, Oberammergau, Osterholz-Scharmbeck, Pirmasens, Rheinau, Rheinberg, Schwabach, Schwetzingen, Seckenheim, Sembach, Stuttgart, Twisteden, Wahn, Wertheim, Wiesbaden, Worms, Wuerzburg, Zimdorf and Zweibrueken. | 125.41 | 45,900 |
Greece | Argyroupolis | 104.64 | 38,300 |
Greece | Athens | 107.92 | 39,500 |
Greece | Elefsis | 107.92 | 39,500 |
Greece | Ellinikon | 107.92 | 39,500 |
Greece | Mt. Hortiatis | 104.64 | 38,300 |
Greece | Mt. Parnis | 107.92 | 39,500 |
Greece | Mt. Pateras | 107.92 | 39,500 |
Greece | Nea Makri | 107.92 | 39,500 |
Greece | Perivolaki | 104.64 | 38,300 |
Greece | Piraeus | 107.92 | 39,500 |
Greece | Souda Bay (Crete) | 83.61 | 30,600 |
Greece | Tanagra | 107.92 | 39,500 |
Greece | Thessaloniki | 104.64 | 38,300 |
Guatemala | Guatemala City | 102.73 | 37,600 |
Holy See, The | Holy See, The | 182.24 | 66,700 |
Hungary | Budapest | 88.80 | 32,500 |
India | Mumbai | 185.57 | 67,920 |
India | New Delhi | 82.66 | 30,252 |
Indonesia | Jakarta | 103.21 | 37,776 |
Ireland | Dublin | 158.20 | 57,900 |
Ireland | Limerick | 89.34 | 32,700 |
Ireland | Shannon Area | 89.34 | 32,700 |
Italy | Catania | 106.56 | 39,000 |
Italy | Gaeta | 77.05 | 28,200 |
Italy | Genoa | 110.38 | 40,400 |
Italy | Gioia Tauro | 85.25 | 31,200 |
Italy | La Spezia | 110.38 | 40,400 |
Italy | Leghorn | 114.21 | 41,800 |
Italy | Milan | 272.13 | 99,600 |
Italy | Naples | 150.27 | 55,000 |
Italy | Pisa | 114.21 | 41,800 |
Italy | Pordenone-Aviano | 125.68 | 46,000 |
Italy | Rome | 182.24 | 66,700 |
Italy | Sardinia | 93.44 | 34,200 |
Italy | Sigonella | 106.56 | 39,000 |
Italy | Turin | 136.07 | 49,800 |
Italy | Verona | 86.89 | 31,800 |
Italy | Vicenza | 126.78 | 46,400 |
Italy | All cities other than Avellino, Brindisi, Catania, Florence, Gaeta, Genoa, Gioia Tauro, La Spezia, Leghorn, Milan, Mount Vergine, Naples, Nettuno, Pisa, Pordenone-Aviano, Rome, Sardinia, Sigonella, Turin, Verona, and Vicenza. | 104.64 | 38,300 |
Jamaica | Kingston | 112.57 | 41,200 |
Japan | Akashi | 86.07 | 31,500 |
Japan | Akizuki | 75.68 | 27,700 |
Japan | Atsugi | 108.47 | 39,700 |
Japan | Camp Zama | 108.47 | 39,700 |
Japan | Chiba-Ken | 108.47 | 39,700 |
Japan | Fussa | 108.47 | 39,700 |
Japan | Gifu | 79.78 | 29,200 |
Japan | Gotemba | 81.97 | 30,000 |
Japan | Haneda | 108.47 | 39,700 |
Japan | Kanagawa-Ken | 108.47 | 39,700 |
Japan | Komaki | 79.78 | 29,200 |
Japan | Machidi-Shi | 108.47 | 39,700 |
Japan | Misawa | 78.96 | 28,900 |
Japan | Nagoya | 103.24 | 37,786 |
Japan | Okinawa Prefecture | 133.06 | 48,700 |
Japan | Osaka-Kobe | 144.91 | 53,036 |
Japan | Sagamihara | 108.47 | 39,700 |
Japan | Saitama-Ken | 108.47 | 39,700 |
Japan | Sasebo | 81.42 | 29,800 |
Japan | Tachikawa | 108.47 | 39,700 |
Japan | Tokyo | 257.38 | 94,200 |
Japan | Tokyo-to | 108.47 | 39,700 |
Japan | Yokohama | 138.25 | 50,600 |
Japan | Yokosuka | 118.58 | 43,400 |
Japan | Yokota | 108.47 | 39,700 |
Kazakhstan | Almaty | 131.15 | 48,000 |
Korea | Camp Carroll | 80.05 | 29,300 |
Korea | Camp Colbern | 178.69 | 65,400 |
Korea | Camp Market | 178.69 | 65,400 |
Korea | Camp Mercer | 178.69 | 65,400 |
Korea | Chinhae | 82.79 | 30,300 |
Korea | Chunchon | 76.78 | 28,100 |
Korea | K-16 | 178.69 | 65,400 |
Korea | Kimhae | 85.79 | 31,400 |
Korea | Kimpo Airfield | 178.69 | 65,400 |
Korea | Kwangju | 81.97 | 30,000 |
Korea | Munsan | 75.41 | 27,600 |
Korea | Osan AB | 93.17 | 34,100 |
Korea | Pusan | 85.79 | 31,400 |
Korea | Pyongtaek | 93.17 | 34,100 |
Korea | Seoul | 178.69 | 65,400 |
Korea | Suwon | 178.69 | 65,400 |
Korea | Taegu | 100.00 | 36,600 |
Korea | Tongduchon | 75.41 | 27,600 |
Korea | Uijongbu | 106.56 | 39,000 |
Korea | Waegwan | 80.05 | 29,300 |
Korea | All cities other than Ammo Depot #9, Camp Carroll, Camp Colbern, Camp Market, Camp Mercer, Changwon, Chinhae, Chunchon, K-16, Kimhae, Kimpo Airfield, Kunsun, Kwangju, Munsan, Osan AB, Pusan, Pyongtaek, Seoul, Suwon, Taegu, Tongduchon, Uijongbu, and Waegwan. | 87.16 | 31,900 |
Kuwait | Kuwait City | 177.87 | 65,100 |
Kuwait | All cities other than Kuwait City. | 159.29 | 58,300 |
Luxembourg | Luxembourg | 149.45 | 54,700 |
Macedonia | Skopje | 96.72 | 35,400 |
Malaysia | Kuala Lumpur | 138.80 | 50,800 |
Malaysia | All cities other than Kuala Lumpur. | 92.08 | 33,700 |
Malta | Malta | 122.95 | 45,000 |
Mexico | Hermosillo | 98.36 | 36,000 |
Mexico | Mazatlan | 88.52 | 32,400 |
Mexico | Merida | 103.55 | 37,900 |
Mexico | Mexico City | 125.41 | 45,900 |
Mexico | Monterrey | 117.21 | 42,900 |
Mexico | All cities other than Ciudad Juarez, Cuernavaca, Guadalajara, Hermosillo, Matamoros, Mazatlan, Merida, Metapa, Mexico City, Monterrey, Nogales, Nuevo Laredo, Tapachula, Tijuana, Tuxtla Gutierrez, and Veracruz. | 107.65 | 39,400 |
Micronesia | Pohnpei | 75.14 | 27,500 |
Netherlands | Amsterdam | 144.54 | 52,900 |
Netherlands | Aruba | 98.36 | 36,000 |
Netherlands | Brunssum | 103.28 | 37,800 |
Netherlands | Eygelshoven | 103.28 | 37,800 |
Netherlands | Hague, The | 187.16 | 68,500 |
Netherlands | Heerlen | 103.28 | 37,800 |
Netherlands | Hoensbroek | 103.28 | 37,800 |
Netherlands | Hulsberg | 103.28 | 37,800 |
Netherlands | Kerkrade | 103.28 | 37,800 |
Netherlands | Landgraaf | 103.28 | 37,800 |
Netherlands | Maastricht | 103.28 | 37,800 |
Netherlands | Papendrecht | 130.87 | 47,900 |
Netherlands | Rotterdam | 130.87 | 47,900 |
Netherlands | Schaesburg | 103.28 | 37,800 |
Netherlands | Schinnen | 103.28 | 37,800 |
Netherlands | Schiphol | 144.54 | 52,900 |
Netherlands | Ypenburg | 187.16 | 68,500 |
Netherlands | All cities other than Amsterdam, Aruba, Brunssum, Coevorden, Eygelshoven, The Hague, Heerlen, Hoensbroek, Hulsberg, Kerkrade, Landgraaf, Maastricht, Margraten, Papendrecht, Rotterdam, Schaesburg, Schinnen, Schiphol, and Ypenburg. | 95.63 | 35,000 |
Netherlands Antilles | Curacao | 101.91 | 37,300 |
New Zealand | Auckland | 97.54 | 35,700 |
New Zealand | Wellington | 92.35 | 33,800 |
Nicaragua | Managua | 86.89 | 31,800 |
Norway | Oslo | 159.29 | 58,300 |
Norway | Stavanger | 108.20 | 39,600 |
Norway | All cities other than Oslo and Stavanger. | 103.01 | 37,700 |
Panama | Panama City | 96.99 | 35,500 |
Peru | Lima | 74.59 | 27,300 |
Phillippines | Cavite | 98.36 | 36,000 |
Phillippines | Manila | 98.36 | 36,000 |
Phillippines | All cities other than Cavite and Manila. | 76.23 | 27,900 |
Poland | Poland | 80.33 | 29,400 |
Portugal | Alverca | 166.67 | 61,000 |
Portugal | Lajes Field | 82.24 | 30,100 |
Portugal | Lisbon | 166.67 | 61,000 |
Qatar | Doha | 99.08 | 36,264 |
Qatar | All cities other than Doha. | 88.52 | 32,400 |
Russia | Moscow | 248.36 | 90,900 |
Russia | Saint Petersburg | 119.67 | 43,800 |
Russia | Sakhalin Island | 211.75 | 77,500 |
Russia | Vladivostok | 211.75 | 77,500 |
Russia | Yekaterinburg | 129.51 | 47,400 |
Rwanda | Kigali | 86.07 | 31,500 |
Saudi Arabia | Jeddah | 83.79 | 30,667 |
Saudi Arabia | Riyadh | 87.43 | 32,000 |
Singapore | Singapore | 176.23 | 64,500 |
South Africa | Pretoria | 109.84 | 40,200 |
Spain | Barcelona | 110.93 | 40,600 |
Spain | Madrid | 123.50 | 45,200 |
Spain | Rota | 106.01 | 38,800 |
Spain | Valencia | 127.60 | 46,700 |
Spain | All cities other than Barcelona, Madrid, Rota and Valencia. | 76.23 | 27,900 |
Switzerland | Bern | 162.30 | 59,400 |
Switzerland | Geneva | 229.78 | 84,100 |
Switzerland | Zurich | 107.16 | 39,219 |
Switzerland | All cities other than Bern, Geneva, and Zurich. | 89.89 | 32,900 |
Taiwan | Taipei | 126.20 | 46,188 |
Thailand | Bangkok | 139.62 | 51,100 |
Turkey | Ankara | 88.80 | 32,500 |
Turkey | Elmadag | 88.80 | 32,500 |
Turkey | Izmir-Cigli | 86.34 | 31,600 |
Turkey | Manzarali | 88.80 | 32,500 |
Turkey | Yamanlar | 86.34 | 31,600 |
Ukraine | Kiev | 196.72 | 72,000 |
United Arab Emirates | Abu Dhabi | 135.76 | 49,687 |
United Arab Emirates | Dubai | 156.21 | 57,174 |
United Kingdom | Basingstoke | 112.29 | 41,099 |
United Kingdom | Bath | 112.02 | 41,000 |
United Kingdom | Bracknell | 169.67 | 62,100 |
United Kingdom | Bristol | 105.74 | 38,700 |
United Kingdom | Cambridge | 117.49 | 43,000 |
United Kingdom | Caversham | 201.64 | 73,800 |
United Kingdom | Cheltenham | 127.87 | 46,800 |
United Kingdom | Chicksands | 72.40 | 26,500 |
United Kingdom | Croughton | 117.76 | 43,100 |
United Kingdom | Fairford | 112.02 | 41,000 |
United Kingdom | Farnborough | 149.45 | 54,700 |
United Kingdom | Felixstowe | 122.95 | 45,000 |
United Kingdom | Gibraltar | 121.90 | 44,616 |
United Kingdom | Harrogate | 126.78 | 46,400 |
United Kingdom | High Wycombe | 169.67 | 62,100 |
United Kingdom | Kemble | 112.02 | 41,000 |
United Kingdom | Lakenheath | 150.55 | 55,100 |
United Kingdom | Liverpool | 106.01 | 38,800 |
United Kingdom | London | 226.50 | 82,900 |
United Kingdom | Loudwater | 173.50 | 63,500 |
United Kingdom | Menwith Hill | 126.78 | 46,400 |
United Kingdom | Mildenhall | 150.55 | 55,100 |
United Kingdom | Oxfordshire | 117.76 | 43,100 |
United Kingdom | Plymouth | 117.76 | 43,100 |
United Kingdom | Portsmouth | 117.76 | 43,100 |
United Kingdom | Reading | 169.67 | 62,100 |
United Kingdom | Rochester | 109.02 | 39,900 |
United Kingdom | Southampton | 120.77 | 44,200 |
United Kingdom | Surrey | 132.25 | 48,402 |
United Kingdom | Waterbeach | 119.95 | 43,900 |
United Kingdom | West Byfleet | 72.13 | 26,400 |
United Kingdom | Wiltshire | 113.66 | 41,600 |
United Kingdom | All cities other than Basingstoke, Bath, Belfast, Birmingham, Bracknell, Bristol, Brough, Bude, Cambridge, Caversham, Chelmsford, Cheltenham, Chicksands, Croughton, Dunstable, Edinburgh, Edzell, Fairford, Farnborough, Felixstowe, Ft. Halstead, Gibraltar, Glenrothes, Greenham Common, Harrogate, High Wycombe, Hythe, Kemble, Lakenheath, Liverpool, London, Loudwater, Menwith Hill, Mildenhall, Nottingham, Oxfordshire, Plymouth, Portsmouth, Reading, Rochester, Southampton, Surrey, Waterbeach, Welford, West Byfleet, and Wiltshire. | 113.93 | 41,700 |
Venezuela | Caracas | 155.74 | 57,000 |
Vietnam | Hanoi | 128.22 | 46,800 |
Vietnam | Ho Chi Minh City | 115.07 | 42,000 |
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