FlagSageSaving clause
Glossary term
A saving clause is a provision in most US tax treaties that keeps each country's right to tax its own citizens and residents as if the treaty did not exist, subject to listed exceptions.
The IRS says most US income tax treaties include a saving clause. It prevents a US citizen or resident from using the treaty to reduce US tax, apart from exceptions written into each treaty.
The IRS notes that treaties often make exceptions for certain types of income, so citizens or residents may still claim some treaty benefits. The list of exceptions differs between treaties, and the text of the specific treaty decides what remains available.
The saving clause is one reason US citizens living abroad generally stay within the US tax system even when the United States has a treaty with their country of residence. A tie-breaker result in favor of another country does not, on its own, remove US tax on a US citizen.
Not to be confused with
- Citizenship-based taxation. Citizenship-based taxation is the US domestic rule, and the saving clause is the treaty provision that keeps it in place.
- Tie-breaker rule. A tie-breaker allocates residence between two countries, while the saving clause limits what that result can do for a US citizen.
Sources
- United States income tax treaties - A to ZOfficial guidance
- Tax treaties can affect your income taxOfficial guidance
Related
- Countries covered
- General
- Sources
- 2 sources
- Tax year
- Current rules as checked
- Review
- Not professionally reviewed
Sources checked November 8, 2026