U.S. Federal Remittance Tax

#What is the U.S. Federal Remittance Tax?

Starting January 1, 2026, a new U.S. federal tax of 1% will apply to certain international remittance transfers funded with cash, money orders, and cashier’s checks. The tax is applied to the full send amount and is collected at the time of the transaction.

 

#Does this apply to all money transfers?

No. The tax does not apply to: Transfers funded from a bank account, credit card, debit card, or prepaid card. Transfers funded with a digital wallet. Transfers sent and received within the U.S., or inward remittances, i.e. money coming into the U.S.

 

#How much is the tax, and where will I see it?

The tax is 1% of the total amount being sent. If your transaction is subject to the tax, it will be shown clearly on your receipt as a separate line item labeled: “U.S. Fed. Remittance Tax”. The tax is only applicable if you choose to pay with cash, money order, or cashier’s check. It is applied on top of a send transaction. Your receiver will still receive the same amount of money as you intended to send.

 

#What should I prepare for this change?

MoneyGram is here to support you. Certain payment types allow you to send money to loved ones without any changes. Those funding options are available via MoneyGram.