Since January 1, 2026, money transfers to other countries that are paid in cash are subject to a 1% federal tax. If you pay with a debit card or from your U.S. bank account, you don't pay it.
What is this tax?
It is a U.S. federal tax on remittances (Internal Revenue Code section 4475), passed by Congress in July 2025. It is not an Enramex fee: by law we collect it from the sender and pay it to the IRS.
When does it apply?
| How you pay for your transfer | Do you pay the 1%? |
|---|---|
| Cash | Yes |
| Money order | Yes |
| Cashier's check | Yes |
| U.S.-issued debit card | No |
| U.S.-issued credit card | No |
| Account at a U.S. bank or credit union | No |
How much is it?
It is 1% of the amount you send. For example, if you send $300:
- Paying in cash, the tax is $3.00.
- Paying with a debit card, the tax is $0.00.
If you send $300 in cash every month, that's $36 a year in tax alone.
How to avoid it
- Pay with your debit card at the agent location. Same transfer, same exchange rate, no 1% tax.
- Send on WhatsApp and pay with your debit card, without leaving home.
- Use the calculator on the home page to see the difference before you send.
Frequently asked questions
Does the recipient pay it?
No. The sender pays it when paying for the transfer. Your family receives the same amount.
Will it show on my receipt?
Yes. Before you pay, we show you the tax together with the fee and the exchange rate, and it also appears on your receipt.
Does it apply to transfers within the United States?
No. Only to transfers to other countries.
General information, not tax advice. The IRS published proposed rules in April 2026 that may still change. Learn more at irs.gov.