US Dollar to Euro Exchange Rate

You must declare amounts on your US tax return in US dollars. This requires converting foreign currency into US dollars if you earn income or incur expenses in a foreign currency. Generally, use the prevailing exchange rate (the spot rate) on the date of the transaction.

However, there’s an exception for certain Qualified Business Units (QBUs). QBUs can often use a foreign currency. If a QBU’s functional currency isn’t the US dollar, income calculations are made in that functional currency and translated to US dollars using the appropriate exchange rate.

You might also need to recognize foreign currency gain or loss on specific transactions. Refer to Section 988 of the Internal Revenue Code and its regulations for details. US tax payments must be made in US dollars to the IRS.

The IRS doesn’t have an official exchange rate and generally accepts any consistently used posted rate. When dealing with a country with multiple exchange rates, use the one relevant to your situation.

The exchange rates on this page don’t apply to US tax payments. The IRS uses the bank’s conversion rate on the day the foreign currency becomes US dollars, not the date the IRS receives it.

For unlisted rates, consult governmental and external resources on the “Foreign Currency and Currency Exchange Rates” page or use any consistently applied posted rate. To convert foreign currency to US dollars, divide the foreign amount by the yearly average exchange rate. To convert US dollars to foreign currency, multiply the US dollar amount by the yearly average exchange rate.

The table below provides yearly average exchange rates for converting foreign currencies to US dollars.

This table provides yearly average exchange rates for various currencies against the US dollar, useful for converting foreign income or expenses for tax purposes. These rates are averages and might not reflect the exact spot rate on a specific date. Always ensure to use a consistent exchange rate for all transactions within a tax year.