The US 1% Remittance Tax Is Live, and Funding Method Now Matters
The 1% US excise on cash-funded transfers is in force; here's what changes before your next send.
The United States’ 1% excise on certain remittances is now in force, applying to cash-funded transfers, with the IRS still finalizing the detailed rules. For diaspora senders across the Caribbean and Africa, the practical lever is the funding method: bank- and card-funded transfers may fall outside the cash definition, which can change the math on each send. Checking how your provider classifies a transfer is worth a few minutes before the next one.
Source: US Treasury and IRS guidance; TWB reporting, 2026.