What the tax is
Under the 2025 law, from January 1, 2026 the US charges a 1% excise tax on certain outbound remittance transfers. There's no minimum amount and no exemption based on your citizenship or immigration status — it depends entirely on how you pay.
The rule in one line: the 1% applies only if you fund the transfer with cash, a money order or a cashier's check. If you pay from a US bank account or a US-issued debit or credit card, the tax does not apply.
Who pays, who's exempt
| You pay the 1% if you fund with… | You're exempt if you fund with… |
|---|---|
| Cash at an agent counter | A US bank / credit-union account |
| A money order | A US-issued debit card |
| A cashier's check | A US-issued credit card |
So on a $1,000 transfer, paying in cash adds $10; paying from your bank account or card adds nothing. For most people the tax is optional in practice — it's a reason to link a bank account or card at your provider.
The bigger cost is usually the exchange rate
The 1% tax is small next to what providers make on the exchange rate and fees. The same $1,000 can arrive with very different amounts depending on the service and corridor. Compare the total cost — fees plus the FX markup — not just the headline fee, and the 1% becomes a footnote.
Do this: fund from a US bank account or card to skip the 1%, then compare providers on total cost for your specific corridor before you send.
Compare what actually arrives →
Free tool: how much lands with each provider for your corridor, cheapest first — and whether the 1% tax applies to you.