Everything you need to know about the new US remittance tax

For millions of hardworking migrants in the US, sending money home isn’t just a transfer, it’s a way of showing love and support. But starting January 1, 2026, a new law, the One Big Beautiful Bill Act, will slap an extra charge on some types of remittances.

Here’s what’s changing, who it hits, and why Sendwave customers can relax. 

It's important to note that when you send money with Sendwave, your transfers will not be subject to the new tax as it doesn't apply to the payment methods we offer

What is the remittance tax?

Remittance tax is a new US law that adds a 1% tax on certain money transfers. If you send money abroad from the US using cash, checks or money orders, an extra 1% will be taken.

That means less money landing in your family’s hands and more in the taxman’s pocket.

Where does this 1% tax apply?

This new tax only affects paper-based payments, including:

• Cash

• Money orders

• Cashier’s checks

So if you’re still paying with cash at a store or mailing a money order, that’s when the tax kicks in.

But transfers funded through your US-issued bank account, debit card or credit card? Totally safe.

Are there any exceptions?

Yes, Digital transfers are exempt.

When you pay with a US-issued debit card, credit card or directly from your bank account, you don’t pay the new tax.

That means you can keep supporting your loved ones without losing an extra slice to the government.

When does the tax start?

Circle the date: January 1, 2026.

From then on, any cash or paper-based remittance payments from the US get hit with the extra 1% tax.

Why Sendwave customers are safe from the tax

Here’s the good news: if you send money with Sendwave, this tax doesn’t touch you.

That’s because Sendwave is 100% digital—no cash, no checks, no money orders. Which means every transfer you send is automatically exempt from the new tax.

Stick with Sendwave and you’ll keep enjoying:

• Fast, secure digital transfers

• Great exchange rates

• 24/7 support, whenever you need us

The bottom line is that with Sendwave and digital transfers, your money stays yours.

Almost the final word

This new remittance tax will really affect those who continue to send cash transfers, but not if they send digitally. Please share the news about this tax with your friends, family and community - so they can be prepared to send digitally and avoid the tax. And introduce them to Sendwave. With Sendwave, transfers are quick, safe, affordable and 100% tax-free. 

Keep more money where it belongs

At Sendwave, we’re proud to stand with the diaspora community. Because we know sending money isn’t just about bills—it’s about love, loyalty and lifting each other up.

So don’t let the taxman get in the way. Send smart, send digital, send with Sendwave.

^{Sendwave makes money off the exchange rate. FX rates are subject to change.}

^{This article is for general information only and not financial or legal advice.}