What is the green-card "exit tax" and could it apply to me if I give up my status?

The exit tax targets "covered expatriates", U.S. citizens who renounce and long-term green-card holders (held a green card in 8 of the last 15 years) who give it up. You're covered if you meet any of: average annual net income tax over a threshold (about $206,000 for 2025), net worth of $2 million or more, or failure to certify five years of tax compliance. If covered, the IRS treats you as having sold all your worldwide assets the day before expatriation and taxes the unrealized gain above an exclusion (around $890,000 for 2025). Most newer green-card holders aren't "long-term" and never trigger it. If you're wealthy and thinking of surrendering a long-held green card, plan years ahead with a cross-border tax pro.