All you need to know about the new US remittance tax

What is the remittance tax?

The One Big Beautiful Bill Act, signed into law in the US, introduces a 1% tax on certain remittances.

This means anyone sending money abroad from the US using specific payment methods - like cash, checks or money orders - will see an extra 1% fee added to their transfers.

If you rely on these older, paper-based ways of sending money, this could eat into the support you provide for loved ones abroad,

Where does this 1% tax apply?

The tax applies only to physical payment types, including:

• Cash

• Money orders

• Cashier’s checks

In other words, if you’re paying in cash at a store or using a money order, this new 1% charge will apply. Transfers funded through a US-issued bank account, debit card or credit card won’t be affected.

Are there any exceptions?

Yes: digital transfers are exempt.

If you pay for your remittance with a US-issued debit card, credit card or directly from your bank account, you won’t pay the new tax.

That’s a major relief for people who send money regularly. It means you can continue to support family and friends abroad without losing out to unnecessary charges.

When will the remittance tax start?

The law takes effect on 1 January 2026. From this date, any cash or paper-based remittance payments made from the US will face the additional 1% tax.

Why WorldRemit customers are in the clear

Here’s the reassuring part: if you send money with WorldRemit, you won’t be affected.

WorldRemit is 100% digital. That means we don’t accept cash, checks or money orders—and your transfers are automatically exempt from the new remittance tax.

So while others may see extra charges, WorldRemit customers will continue to enjoy:

• Digital transfers that are quick and reliable

• Safe and secure payments

• Great value and competitive exchange rates

• The convenience of sending anytime, anywhere

In short: your transfers stay 100% tax-free.

Important to note

The new remittance tax will affect some US senders, but not WorldRemit customers. By keeping your transfers digital, you can be sure every penny you send arrives where it’s needed most.

Make a world of difference with WorldRemit

At WorldRemit, we’re delighted to support migrants living and working far from home. That’s why we wanted to share this news about the US Remittance tax with you. We hope that now you have all the information, you’ll be well prepared when the 1% tax on cash transfers comes around on 1st January 2026. You can make a world of difference by sharing this important news with your friends and community - help them be prepared, too.

For more insights into issues that affected migrants, head over to our blog. You’ll find a selection of helpful and informative articles put together especially for people living and working abroad.

And, if you’re sending money home, we can help. Our low fees will save you money, and our service is fast and secure – plus, it’s trusted by millions of users (and counting).  

So, why not sign up to WorldRemit and make a money transfer today? 

^{The content of this blog post does not constitute legal or financial advice and is provided for general information purposes only. If you require specific legal and / or financial advice you should contact a specialist lawyer or financial advisor. Information true at time of publishing.}