Key Takeaways
• One Big Beautiful Bill Act enacts a 1% remittance tax on cash transfers after December 31, 2025.
• Tax applies equally to U.S. citizens, green-card holders, and H-1B professionals sending cash abroad.
• Federal government expects $10 billion revenue; electronic transfers are exempt from the tax.
A new tax on money sent abroad is set to impact millions of people living and working in the United States 🇺🇸, including green-card holders and H-1B professionals. The One Big Beautiful Bill Act, which passed in 2025, introduces a 1% remittance tax on certain cash transfers sent outside the country. This change, effective for transfers made after December 31, 2025, has sparked questions and concerns among immigrants, their families, and employers. Here’s what you need to know about how this tax works, who it affects, and what it could mean for the future of immigration and international money transfers.
What Is the Remittance Tax in the One Big Beautiful Bill Act?
The One Big Beautiful Bill Act is a wide-ranging law that covers many areas of tax and immigration policy. One of its most talked-about features is the new remittance tax. This tax is a 1% fee on certain cash transfers sent from the United States 🇺🇸 to other countries. The goal is to raise money for the federal government and, according to some supporters, to discourage illegal immigration by making it more expensive to send money home.
The tax applies to both U.S. citizens and non-citizens, including green-card holders and H-1B professionals. It does not matter what your immigration status is—if you send a cash remittance abroad, you will pay the tax.
Key facts:
– Tax rate: 1% of the amount sent
– Applies to: Cash transfers sent outside the United States 🇺🇸
– Effective date: Transfers made after December 31, 2025
– Who pays: U.S. citizens, green-card holders, H-1B professionals, and anyone else sending cash abroad
How Does the Tax Work?
The remittance tax is straightforward in its application. If you send cash from the United States 🇺🇸 to another country, you will pay a 1% tax on the amount you send. For example, if you send $1,000 to your family in India 🇮🇳, you will pay an extra $10 as a remittance tax.
Important details:
– The tax applies only to cash transfers. Electronic transfers, such as those made through banks or online payment services, are not covered by this tax.
– The tax is collected at the time of the transfer, usually by the money transfer service or financial institution handling the transaction.
– There are no exceptions based on immigration status, employment, or tax residency. The rule is the same for everyone.
Are Green-Card Holders and H-1B Professionals Treated the Same?
Yes. The One Big Beautiful Bill Act does not make any distinction between green-card holders and H-1B professionals when it comes to the remittance tax. Both groups, along with U.S. citizens and other residents, are subject to the same 1% tax on cash remittances sent abroad.
Green-card holders are people who have been granted lawful permanent residence in the United States 🇺🇸. They can live and work in the country permanently and often send money to family members in their home countries.
H-1B professionals are skilled workers from other countries who have been granted temporary permission to work in the United States 🇺🇸, usually in specialized fields like technology, engineering, or medicine. Many H-1B professionals also send money home to support family or pay for expenses.
No matter which group you belong to, the tax applies equally. There are no special rules, exemptions, or lower rates for green-card holders or H-1B professionals.
Why Was the Remittance Tax Introduced?
The main reasons for introducing the remittance tax are:
- Raising Revenue: The federal government expects to collect about $10 billion in new revenue from this tax, according to estimates.
- Discouraging Illegal Immigration: Some lawmakers and policy experts believe that making it more expensive to send money abroad will discourage people from living and working in the United States 🇺🇸 without legal status.
- Part of Broader Tax Reform: The remittance tax is just one part of the One Big Beautiful Bill Act, which also includes changes to international tax rules and other reforms.
What Are the Practical Implications?
The new remittance tax will have real effects on many people and communities. Here’s what you should consider if you are a green-card holder, H-1B professional, or anyone else who sends money abroad:
1. Higher Costs for Sending Money Home
For many immigrants, sending money to family members in other countries is a regular part of life. The new 1% tax means that every cash transfer will cost a little more. Over time, these extra costs can add up, especially for people who send money frequently or in large amounts.
2. No Difference Based on Immigration Status
Whether you are a U.S. citizen, green-card holder, H-1B professional, or have another immigration status, the tax applies to you if you send cash abroad. This means that the law treats all senders the same, regardless of their background or legal status.
3. Possible Shift to Electronic Transfers
Because the tax only applies to cash transfers, some people may choose to use electronic methods to send money abroad. This could include bank transfers, online payment services, or mobile apps. However, not everyone has access to these services, especially in rural or less developed areas.
4. Impact on Families and Communities Abroad
Many families in countries like Mexico 🇲🇽, India 🇮🇳, and the Philippines 🇵🇭 rely on remittances from relatives working in the United States 🇺🇸. The new tax could mean less money reaches these families, which may affect their ability to pay for basic needs like food, housing, and education.
5. Revenue for the U.S. Government
The federal government expects to collect about $10 billion from the remittance tax. This money could be used for various public programs or to reduce the federal deficit.
What Do Experts Say?
The remittance tax has sparked debate among policymakers, experts, and advocacy groups.
- Lora Ries, Director of the Border Security and Immigration Center at The Heritage Foundation, supports the tax. She believes it could help discourage illegal immigration by making it more expensive to send money home.
- Government relations professionals, such as those at Buchanan Ingersoll & Rooney, are working with clients to understand and adjust to the new rules. They help businesses and individuals figure out how the law will affect them and what steps they should take.
As reported by VisaVerge.com, the remittance tax is part of a larger effort to reform international tax rules and address concerns about money leaving the United States 🇺🇸 without being taxed.
How Does This Affect Different Groups?
Green-Card Holders
Green-card holders often have close family ties in their home countries and may send money regularly to support loved ones. The new tax means they will pay more each time they send cash abroad. Over a year, these extra costs could become significant, especially for those supporting multiple family members.
H-1B Professionals
H-1B professionals, who are often in the United States 🇺🇸 on temporary work visas, also send money home for family support, education, or investments. The 1% tax will apply to their cash transfers, making it more expensive to help family members or manage financial responsibilities in their home countries.
U.S. Citizens
Even U.S. citizens who send cash abroad—for example, to relatives, friends, or for business reasons—will be subject to the same tax. The law does not make any exceptions based on citizenship.
Money Transfer Businesses
Companies that handle cash remittances, such as Western Union and MoneyGram, will need to adjust their systems to collect the new tax. They may also need to explain the changes to their customers and help them understand the new costs.
Families Abroad
Families in other countries who depend on money sent from the United States 🇺🇸 may receive less support if senders reduce the amount they send or switch to other methods to avoid the tax.
What Should You Do If You Send Money Abroad?
If you are a green-card holder, H-1B professional, or anyone else who sends money abroad, here are some steps you can take:
- Review your transfer methods: Since the tax applies only to cash transfers, consider using electronic methods if possible. Bank transfers, online payment services, and mobile apps may not be subject to the tax, but check with your provider to be sure.
- Plan for higher costs: If you must send cash, budget for the extra 1% tax. Over time, this can add up, so it’s important to factor it into your financial planning.
- Stay informed: The rules could change as the law is implemented. Keep up to date with official government updates and ask your money transfer provider about any changes.
- Consult with experts: If you have questions about how the tax affects you, consider speaking with a tax advisor or immigration attorney. They can help you understand your options and make the best choices for your situation.
For official updates and more information, you can visit the U.S. Congress’s official legislative information site, which provides the latest on bills and laws, including the One Big Beautiful Bill Act.
Background: How Did We Get Here?
The idea of taxing remittances is not new. Lawmakers have debated similar proposals for years, often as part of larger discussions about immigration and tax policy. Earlier versions of the One Big Beautiful Bill Act suggested higher tax rates, but the final law settled on a 1% rate for cash transfers.
The remittance tax is just one part of a much larger law that also includes changes to how international businesses are taxed, rules for controlled foreign corporations (CFCs), and other reforms. The law reflects ongoing debates in the U.S. Senate about how to balance the need for revenue with concerns about fairness and the impact on immigrants.
What’s Next?
The remittance tax is scheduled to take effect for transfers made after December 31, 2025. In the coming months, the government will issue more detailed rules about how the tax will be collected and enforced. Money transfer companies will need to update their systems, and individuals will need to adjust to the new costs.
There is also a chance that lawmakers could make further changes to the law before it takes effect. As the One Big Beautiful Bill Act moves forward, watch for updates from official sources and advocacy groups.
Key Takeaways
- The One Big Beautiful Bill Act introduces a 1% remittance tax on cash transfers sent from the United States 🇺🇸 to other countries, starting with transfers made after December 31, 2025.
- The tax applies equally to green-card holders, H-1B professionals, U.S. citizens, and anyone else sending cash abroad. There are no exceptions based on immigration or employment status.
- The tax is expected to raise about $10 billion for the federal government.
- Some experts believe the tax could discourage illegal immigration, while others worry about its impact on families who rely on remittances.
- The tax does not apply to electronic transfers, so using banks or online services may help avoid the extra cost.
- Stay informed by checking official government sources and talking to financial or legal experts if you have questions.
Final Thoughts
The new remittance tax under the One Big Beautiful Bill Act is a major change for anyone who sends money abroad from the United States 🇺🇸. While the tax is designed to raise revenue and address immigration concerns, it will also affect the daily lives of millions of people, including green-card holders and H-1B professionals. By understanding how the tax works and planning ahead, you can make informed decisions about your finances and support your loved ones more effectively.
For the latest updates and official information, always check trusted government resources and speak with qualified professionals if you need help. The landscape of immigration and tax law is always changing, and staying informed is the best way to protect your interests and those of your family.
Learn Today
One Big Beautiful Bill Act → A comprehensive 2025 U.S. law introducing a 1% tax on cash remittances abroad.
Remittance tax → A 1% fee charged on cash money transfers sent outside the United States.
Green-card holder → A person with lawful permanent U.S. residency able to live and work permanently.
H-1B professionals → Temporary skilled workers permitted to work in specialized fields in the U.S.
Electronic transfers → Non-cash money transfers through banks or online payment systems, exempt from tax.
This Article in a Nutshell
The One Big Beautiful Bill Act imposes a 1% tax on cash remittances sent abroad from the U.S. after 2025. It affects green-card holders, H-1B professionals, and citizens without exceptions. This may increase costs for families abroad but exempts electronic transfers, impacting money transfer choices widely.
— By VisaVerge.com
