How much actually arrives when you send money? + the new 1% tax
Compare what it costs to send money home by provider — and find out whether the new 1% remittance tax hits you (spoiler: only if you pay with cash). Free, no signup.
Compare your transfer
Cheapest to priciest (typical cost)
Email me the comparison + when my corridor's rates change
Worked examples
Monthly $380 to family in Jalisco, paid from bank
✓ No 1% tax — paying from a US bank or card is exempt
Wisearrives $372–$378typical cost 0.5–2% · Mid-market exchange rate + a small clear fee — usually the cheapest and most transparent.Xoom (PayPal)arrives $369–$380typical cost 0–3% · Very low when funded from a bank account; card or cash pickup costs more.Xearrives $369–$376typical cost 1–3% · Usually 'no fee' — earns on the exchange margin.MoneyGramarrives $367–$376typical cost 1–3.5% · Competitive online; pricier at agent counters.Remitlyarrives $361–$374typical cost 1.5–5% · Strong first-transfer promos; ongoing cost is higher.Western Unionarrives $353–$372typical cost 2–7% · Wide range — depends heavily on how you pay and how they pick up.Traditional bankarrives $312–$361typical cost 5–18% · Usually the worst rates — avoid for remittances.
World Bank average for this corridor: 3.6% total cost (Q3 2025).
Send with Wise →Mid-market exchange rate + a small clear fee — usually the cheapest and most transparent. Confirm the exact amount in their app.Send with Xe →Usually 'no fee' — earns on the exchange margin. Confirm the exact amount in their app.
$2,400 down payment to Colombia, paid in cash
⚠ 1% remittance tax: +$24 (applies because you pay with cash)
Wisearrives $2,328–$2,364typical cost 0.5–2% · Mid-market exchange rate + a small clear fee — usually the cheapest and most transparent.Xoom (PayPal)arrives $2,304–$2,376typical cost 0–3% · Very low when funded from a bank account; card or cash pickup costs more.Xearrives $2,304–$2,352typical cost 1–3% · Usually 'no fee' — earns on the exchange margin.MoneyGramarrives $2,292–$2,352typical cost 1–3.5% · Competitive online; pricier at agent counters.Remitlyarrives $2,256–$2,340typical cost 1.5–5% · Strong first-transfer promos; ongoing cost is higher.Western Unionarrives $2,208–$2,328typical cost 2–7% · Wide range — depends heavily on how you pay and how they pick up.Traditional bankarrives $1,944–$2,256typical cost 5–18% · Usually the worst rates — avoid for remittances.
World Bank average for this corridor: 4.96% total cost (Q3 2025).
Send with Wise →Mid-market exchange rate + a small clear fee — usually the cheapest and most transparent. Confirm the exact amount in their app.Send with Xe →Usually 'no fee' — earns on the exchange margin. Confirm the exact amount in their app.
$650 Madrid → Ecuador in cash, no US tax
Wisearrives $637–$647typical cost 0.5–2% · Mid-market exchange rate + a small clear fee — usually the cheapest and most transparent.Xoom (PayPal)arrives $631–$650typical cost 0–3% · Very low when funded from a bank account; card or cash pickup costs more.Xearrives $631–$644typical cost 1–3% · Usually 'no fee' — earns on the exchange margin.MoneyGramarrives $627–$644typical cost 1–3.5% · Competitive online; pricier at agent counters.Remitlyarrives $618–$640typical cost 1.5–5% · Strong first-transfer promos; ongoing cost is higher.Western Unionarrives $605–$637typical cost 2–7% · Wide range — depends heavily on how you pay and how they pick up.Traditional bankarrives $533–$618typical cost 5–18% · Usually the worst rates — avoid for remittances.
World Bank average for this corridor: 7.06% total cost (Q3 2025).
Send with Wise →Mid-market exchange rate + a small clear fee — usually the cheapest and most transparent. Confirm the exact amount in their app.Send with Xe →Usually 'no fee' — earns on the exchange margin. Confirm the exact amount in their app.
Examples are recomputed whenever the underlying rates or data change; the date above is the last recompute.
Methodology & data sources
The 1% tax comes from the OBBB law (IRC §4475): since January 1, 2026 a 1% excise tax applies to transfers abroad paid with cash, a money order or a cashier's check; transfers funded from a US bank account or a US-issued debit/credit card — and, under IRC §4475(d), from cryptocurrency or a business wire — are exempt, with no minimum. The tool applies the 1% only if you choose to pay with cash. Provider costs are typical total-cost profiles (fee + exchange margin) for $200–$500 transfers, synthesized from World Bank Remittance Prices Worldwide (Q3 2025) and each service's model; we show them as ranges because the real cost changes daily and with promos. The corridor average shown is the World Bank average for that country. We deliberately don't show live exchange rates — we give you the stable answer of who's typically cheapest, and send you to confirm the exact amount in the provider's app. Our Freshness Keeper checks the tax and corridor averages against their sources.
Sources: IRS — remittance tax (OBBB §4475) · World Bank — Remittance Prices Worldwide
Frequently asked questions
How much is the new 2026 remittance tax?
1% — but only if you pay with cash, a money order or a cashier's check. From a US bank account or card it doesn't apply.
How do I avoid the 1% tax?
Pay from a US bank account or a US-issued debit/credit card — app transfers funded that way are exempt.
What's the cheapest way to send to Mexico or Colombia?
Usually app services at the market exchange rate (Wise, Xe): 0.5%–3% total cost. Banks are the priciest. Compare before you send.
Does the tax apply if I'm a US citizen?
Yes — there's no citizenship exemption. What matters is how you pay (cash vs bank/card), not who you are.