Do you send money to someone in another country? If so, because of a lesser-known provision of the One, Big, Beautiful Bill Act, the money you send may be subject to a tax, beginning in 2026. The 1% excise tax applies to transfers of cash or cash equivalents from a sender in the United States to a foreign recipient, via a remittance transfer provider. The remittance transfer provider will collect the tax as part of the transfer fee and then remit it quarterly to the U.S. Treasury. Transfers made through a financial institution (such as a bank) or with a debit or credit card are excluded from the tax.
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