Washington's 1% Remittance Tax Spares App Transfers — and a 25% Bill Now Waits Behind It

The mechanics of the 1% US remittance tax, live since January 1, matter more than the rate. It applies only to physical transfers — cash, money orders, cashier’s checks handed over in person — and exempts transfers funded electronically from a US bank account, debit or credit card. The avoidance path is a channel switch: fund the transfer from a linked account rather than walking cash into a storefront.

The risk worth pricing is the trend, not the current 1%. Rep. Chip Roy has introduced a bill to raise the levy to 25% on transfers by non-citizens; an earlier Senate bill proposed 15%. Neither has passed, but two escalation bills in one session is a direction. The defensive move — move off cash now, and compare total cost across providers since exchange-rate markups still vary by corridor — protects against both today’s tax and a steeper one. We will flag the moment either bill clears committee.

Source: REMITTANCE Act (Rep. Chip Roy); REMIT Act (Sen. Eric Schmitt); BrightTax; Border Report.