One element in the “Big Beautiful Bill” recently passed by the U.S. Congress and signed by President Trump is the tax on remittances.
Here’s the Wikipedia definition of “remittance”: “A remittance is a non-commercial transfer of money by a foreign worker, a member of a diaspora community, or a citizen with familial ties abroad, for household income in their [sic] home country or homeland.”
The new law takes effect January 1st, 2026, and will charge a 1% tax on remittances sent from the United States.
However, this tax is only to be applied to cash transfers, cashier’s checks, money orders and similar instruments. Examples include cash transfers through Western Union or MoneyGram.
It doesn’t apply to electronic transfers.
