Archive · 2 Jun 2025
Proposed US Remittance Tax Could Increase Costs for Non-Citizens
Imagine you're sending money from the US to family in another country.
A new rule might add a small tax, like a fee, on each transfer.
This tax would apply to people who aren't US citizens, such as students and those on work visas.
The tax is 3.5% of the amount sent.
It means that a portion of your money goes to taxes instead of reaching your family.
US citizens won't have to pay this tax.
Experts suggest that if this tax is implemented, it's best to plan carefully or finish your transactions before it takes effect.
A proposed 3.5% excise tax on remittances from the US could increase costs for non-citizens.
The tax, part of the 'One Big Beautiful Bill,' passed the House and awaits Senate approval.
The tax applies to international money transfers by non-citizens, including visa and green card holders.
US citizens are exempt and can claim a tax credit if mistakenly charged.
Experts recommend non-citizens consider financial planning and completing transfers before January 2026.
- Who
- Non-US citizens, including H-1B visa holders, F-1 students, and green card holders.
- What
- A proposed 3.5% tax on remittances sent abroad by non-citizens.
- When
- If approved by the Senate, could take effect January 1, 2026.
- Where
- United States
- Why
- To generate tax revenue.
- Tax Rate
- 3.5%
- Applies to
- Non-US citizens (visa holders, green card holders)
- Exemptions
- US citizens
- Tax Type
- Excise Tax
- Potential Impact
- Reduced savings for remittances
- Bill Status
- Passed House, awaiting Senate
- Possible Effective Date
- January 1, 2026