Totalization agreement: meaning and how countries use it

The IRS says the United States has signed these agreements with several countries. They must be considered when deciding whether a person owes US Social Security and Medicare tax, or whether a US citizen or resident owes another country's social security tax. To claim an exemption from US Social Security and Medicare taxes, a worker needs a certificate of coverage from the social security agency of their home country.

Within the European Union, social security coordination rules do a similar job between member states. A portable document A1 shows that a worker posted to another EU country stays covered by the home country's system.

A totalization agreement is not an income tax treaty. It covers social security taxes, and income tax questions are handled under domestic law and any tax treaty.

Not to be confused with

Tax treaty. A tax treaty deals with income tax, while a totalization agreement deals with social security.
Certificate of coverage. The certificate is the document a worker uses to show which system covers them under the agreement.

Sources

Totalization agreementsOfficial guidance
Social security cover when you live or work in another EU countryOfficial guidance

Countries covered: General
Sources: 2 sources
Tax year: Current rules as checked
Review: Not professionally reviewed
Sources checked November 8, 2026

Not to be confused with

Sources

Related