What is the difference between nationality and citizenship?

Published on May 20, 2026

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Nationality refers to a person’s legal status as a citizen of a country, usually by birth or descent, while citizenship is a legal status that grants full rights, such as voting, working, and living permanently in that country.

In the US, every citizen is also a national. However, not every national is a citizen. That distinction exists in specific cases, such as people born in certain US territories.

For tax purposes, the IRS focuses mainly on citizenship and residency status, not nationality alone. That is what determines whether you need to file US taxes while living abroad.

3 Key Differences Between Nationality and Citizenship:

Nationality shows where you belong legally
Citizenship gives you full legal rights
Citizenship can be gained later through naturalization

Nationality vs citizenship at a glance

The table below breaks down the key differences in a way that’s easy to scan, especially if you’re comparing how each status affects your rights and taxes. The real difference becomes clearer once you see how each status works in practice.

Feature	Nationality	Citizenship
Definition	Legal belonging to a country	Full legal status with rights and responsibilities
How do you get it	Usually by birth or descent	By birth or naturalization
Voting rights	Not always	Yes (in most cases)
Passport eligibility	Often	Yes
Can you lose it	Rare	Possible (e.g., renunciation)
Tax implications (US)	Depends	Always relevant for US citizens

What is nationality?

Nationality is your legal bond to a country, based on allegiance rather than full legal participation.

Nationality can sometimes overlap with identity or origin in everyday language. However, legally speaking, it is about allegiance and recognition by a state.

In US law, a “national of the United States” includes:

US citizens
Non-citizen nationals who owe permanent allegiance to the US

From a tax perspective, nationality alone does not usually trigger obligations. The IRS does not ask, “What is your nationality?” as the main question. Instead, it focuses on whether you are a US citizen or a resident alien.

A resident alien is someone who is not a US citizen but is generally taxed like US citizens on worldwide income, often because they hold a Green Card or spend enough time in the US. That distinction matters more than most people expect.

What is citizenship?

Citizenship is a step further. It means you are a full member of a country under its laws.

In the US, citizenship can be acquired in two main ways:

At birth (for example, being born in the US or to US citizen parents)
Through naturalization after meeting legal requirements

Citizenship comes with a defined set of rights and responsibilities. These typically include:

Rights:

Voting in federal elections
Holding a US passport
Access to US consular protection

Responsibilities:

Following US laws
Filing US taxes on worldwide income

Here is where things start to connect to expat life. Unlike most countries, the US uses citizenship-based taxation. That means if you are a US citizen, you generally need to report your worldwide income to the IRS, even if you live abroad.

Key takeaway: Nationality explains your legal connection, while Citizenship directly affects your day-to-day obligations, especially taxes.

Key differences explained in plain terms

The distinction becomes easier if you think about it this way:

Nationality answers: Which country do you belong to?
Citizenship answers: Do you have full rights and responsibilities in that country?

Here is a more practical breakdown:

All citizens are nationals, but not all nationals are citizens
Citizenship carries political rights and legal responsibilities
Nationality can exist without full participation in the country’s system

A good example is a non-citizen US national. They may:

Owe allegiance to the US
Receive some protections
But not have full voting rights

That said, these cases are relatively rare. Most people will find that their nationality and citizenship align.

Still, for legal and tax purposes, the distinction is real.

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Real-world example: When Nationality and Citizenship differ

In some cases, a person can have nationality without full citizenship rights.

For example, individuals with British Overseas Territories citizenship are considered British nationals, but they may not automatically have the same rights as full UK citizens, such as the unrestricted right to live and work in the UK.

Why this difference matters for US expats

For US expats, the difference between nationality and citizenship directly affects tax obligations. The IRS does not rely on nationality. Instead, it determines your filing requirements based on citizenship and residency status. This means that even if you identify with another country, your US citizenship can still require you to report worldwide income.

If you live outside the US, your tax obligations are not based solely on your nationality. Instead, the IRS looks at:

Whether you are a US citizen
Whether you qualify as a resident alien
Whether you meet filing thresholds for the tax year

For the 2025 tax year (filed in 2026), US citizens abroad still need to review standard filing thresholds and report worldwide income if they meet those limits.

Even if you:

Live in another country
Pay foreign taxes
Have not been in the US for years

You may still need to file.

However, there are relief provisions such as:

These help reduce or eliminate double taxation, but they do not remove the filing requirement itself.

Note: This is where many expats get confused. They assume that living abroad or holding another nationality changes their US obligations. In reality, citizenship remains the key factor.

Why this matters for US Citizens living abroad

If you are a US citizen, you have ongoing tax obligations, no matter where you live.

This means:

You must file a US tax return every year if you meet the filing thresholds
You may need to report foreign bank accounts (FBAR)
You may need to report foreign investments (PFIC rules)

Even if you hold another nationality, your US tax obligations continue until you formally give up your US citizenship.

Renouncing citizenship is a legal process and includes filing Form 8854 with the IRS.

Common misconceptions (and where people get it wrong)

“If I have another nationality, I don’t need to file US taxes.”

Not quite. If you are still a US citizen, the IRS still expects you to file a return.

“Nationality and citizenship are the same thing.”

They overlap, but they are not identical. Citizenship is a specific legal status within nationality.

“Living abroad cancels US obligations.”

It doesn’t. It changes how you file, not whether you file.

“Only income earned in the US is taxable.”

For US citizens, worldwide income is generally reportable.

Key takeaway: People tend to rely on what feels intuitive rather than how the law actually works, which is understandable. However, clearing up these misconceptions early can prevent costly mistakes later on.

How to determine your status

If you are unsure where you stand, start here:

Step 1: Check citizenship status

Born in the US
Naturalized
Born abroad to US parents

If yes, you are subject to US tax rules.

Step 2: Are you a US national but not a citizen?

Rare, but possible (e.g., certain territories)

Step 3: Are you a resident alien under US tax rules?

Based on the substantial presence test or Green Card status

Step 4: Do you meet filing thresholds?

Depends on income and filing status for 2025

Note: If you reach Step 1 or Step 3, you are generally within the US tax system.

Where nationality still matters

While citizenship drives most tax rules, nationality is not irrelevant. It still plays a role in areas like immigration status, passport eligibility, and consular protection abroad. For example, your nationality can determine which passport you use when entering a country or which embassy can assist you in emergencies.

However, when it comes to US taxes, nationality plays a secondary role. Citizenship and residency status are what ultimately determine your obligations.