Archive · 29 Jun 2025
Senate Reduces Remittance Tax to 1%
The US Senate lowered the tax on money sent from the US to other countries.
Originally, the tax was set at 3.5%, but it's now 1%.
If you send money from your US bank account or with your card, you don't have to pay the tax.
The tax only applies if you are a non-citizen and use cash or similar methods.
These changes are set to apply after the end of 2025, which means that money sent home by students, graduates, or others may be taxed.
US Senate reduces remittance tax to 1% from a proposed 3.5%.
Transfers from US bank accounts and cards are exempt from the tax.
The tax applies to transfers made after December 31, 2025.
Non-citizens, including visa holders, are subject to the tax.
The changes are part of the One Big Beautiful Bill Act.
- Who
- Non-citizens in the US who remit money home.
- What
- The US Senate reduced the proposed remittance transfer tax.
- When
- The changes apply to transfers made after December 31, 2025.
- Where
- The changes apply to remittances from the US.
- Why
- To modify remittance tax rules.
Tax Application
Impact of Tax Changes
Impact of Tax Changes
Tax Application
The remittance tax changes narrow the application of the tax.
Impact of Tax Changes
The NRI community in the US will be relieved as their remittances from bank accounts and cards will be exempt.
- Proposed Tax Rate
- 1%
- Original Tax Rate
- 3.5%
- Applicable Transfers
- Transfers after December 31, 2025
- Exempt Transfers
- Funds from US bank accounts/cards
- Affected Group
- Non-citizens
