Change is scary—especially when it comes to federal law.
We’ve all felt it over the past year, as whispers swirled around Donald Trump’s divisive “One Big Beautiful Bill.” With 870 sweeping pages of provisions, it seemed impossible to separate the rumors from reality.
That changed on July 4, 2025, when the legislation was officially signed into law.
Amid the uncertainty, immigrants prioritized one overarching question: how will the remittance tax affect the money I send home when I visit a UniTeller agent location?
This article answers that question.
Below, we break down exactly what this means for YOU, especially if you send money through a UniTeller retail agent partner.
In the sections below, we hope to assuage any concerns and assure you that hope is on the horizon. Though changes are occurring, UniTeller is confident that pathways remain open to maximize the value of your gifts—without paying any money transfer tax.
Let’s dig into the details.
The Genesis of the One Big, Beautiful Bill
Even in the age of fiat currency, governments need money.
The One Big Beautiful Bill allocates funding to the Trump administration in broad strokes, costing Americans roughly $3.4 trillion over the next decade.
After President Trump regained office, his “fundraising” campaigns began in earnest.
From day one, he outlined the headlining objectives he wanted to achieve, like raising the debt ceiling, cutting Medicaid spending, and increasing funding for Immigration and Customs Enforcement (ICE).
This litany of “tax and spend” proposals was officially codified in the “One Big Beautiful Bill Act” (OBBBA).
Given the omnibus bill’s rather coy title and edgy agenda, the OBBBA became the center of a firestorm that demanded staunch loyalty from Trump’s allies to get passed into law.
Just two days after being introduced in the House of Representatives, the OBBBA passed by a narrow 218-214 vote (with two Republican holdouts).
Weeks later, on July 1, the Senate passed an amended version of the OBBBA by a vote of 51-50—thanks to Vice President J.D. Vance’s tiebreaking ballot.
Amid dual scenes of celebration and outrage, the cacophony buried a topic near and dear to immigrants across America: the sudden emergence of a remittance tax.
A Look Back: Tax History and Remittances
Remittances have never before been taxed in the United States.
This is extraordinary, considering the host of tax laws that underpin American economics. Indeed, Uncle Sam has taxed almost everything except remittances.
Historically, these financial gifts have been considered “off limits” to government interference of any kind.
Why? Because remittances are widely regarded as a net benefit for all parties involved: stimulating growth in the origin country, building the GDPs of recipient nations, and even eclipsing foreign direct investment (FDI) abroad.
More practically, 75% of all remittances are spent putting food on the table and covering housing costs.
Remittances are an undeniable human good, and the U.S. is at the epicenter of these global outflows, with over $93 billion sent abroad in 2024 alone.
Given the sanctity (and popularity) of remittances, the emergence of a money transfer tax shook the foundation of the modern immigrant’s financial lifeline back home.
How the One Big, Beautiful Bill Act Affects Remittances
On January 1, 2026, remittances will start getting taxed.
But what does that look like for people visiting a UniTeller agent location?
The answer depends on the method you use to transfer your money.
To help explain this crucial point, let’s visit the OBBBA legislation itself—specifically, section 4475 of the “One Big Beautiful Bill”:
“There is hereby imposed on any remittance transfer a tax equal to 1 percent of the amount of such transfer…The tax imposed by this section with respect to any
remittance transfer shall be paid by the sender with respect to such transfer.”
Taken at face value, the legislation seems to affirm that every remittance transfer will incur a 1% tax to be paid by the sender (no matter their legal status in America).
Thankfully, that’s not the end of the matter.
Written below the official legislation text, two key exemptions are listed:
“[The tax] shall not apply to any remittance transfer for which the funds being
transferred are…
- withdrawn from an account held in or by a financial institution—
- funded with a debit card or a credit card, which is issued in the United States.”
In other words, the law imposes a 1% federal tax on any remittance transfer UNLESS it is funded by a:
- U.S. bank account
- U.S.-issued debit card
- U.S.-issued credit card
This is true for citizens, green card holders, lawful permanent residents (LPRs), and undocumented workers alike. Anyone completing electronic or digital transfers backed by an American bank account or U.S.-issued debit/credit cards will be immune to the tax.
Conversely, any transfers made through physical methods—like cash, money orders, and cashier’s checks—will be subject to the 1% tax.
Note: though senders shoulder the financial burden of the tax, institutions acting as Remittance Transfer Providers (RTPs) will automatically deduct the fee from any amount exceeding $15 transferred abroad. RTPs will be expected to remit collected taxes quarterly to the Internal Revenue Service (IRS).
Here’s what matters most for UniTeller customers who visit agent locations:
If you pay for your transfer in cash, the 1% federal tax WILL apply.
If you pay using a debit or credit card issued in the U.S. at a UniTeller agent location (only where accepted), the federal tax WILL NOT apply.
The Direct Impact on Money Transfers
Every dollar counts.
As an immigrant, you’ve worked tirelessly to establish yourself in America and generate sufficient income to support your loved ones back home.
In times like these, you deserve to know exactly how the OBBBA legislation will affect your bottom line.
In the sections below, we will explore the potential outcomes of the remittance tax and highlight the power of trusted partnerships in the digital age.
Potentially Increased Costs and Reduced Value
The effect of the remittance tax hinges entirely on the payment method you choose.
For example, if you utilize cash transfers or money orders, you will face the 1% tax. In such circumstances, $500 sent overseas would incur a $5 fee paid to the federal government.
Over time, these taxes could place a major burden on senders and recipients, preventing remittance costs from reaching the UN’s Sustainable Development Goal of 3%.
Nevertheless, the remittance tax can be easily avoided.
How to Avoid the Tax at Agent Locations
Use a U.S.-issued debit or credit card to pay for your transfer (where available).
This qualifies as an electronic funding method under the law, making your transfer tax-exempt.
UniTeller agent partners will continue to support payment methods that help customers avoid unnecessary fees whenever possible.
Potential Shift to Informal Channels
As new laws take effect, some may consider risky informal channels to avoid fees.
But informal cash couriers or unregulated methods pose serious risks—lost funds, scams, delayed delivery, and potential legal trouble.
UniTeller encourages customers to use secure, regulated agent locations where delivery of the money you send is guaranteed.
Potential Economic Implications
Some economic forecasters anticipate notable drawdowns in remittance flows.
While expectations vary, conservative estimates project a 2.66% drop from current levels—roughly $2.71 billion. It remains to be seen if these sums “disappear” from global remittance flows altogether or get rerouted through informal channels.
As for domestic profitability, advocates of the OBAAA estimate the remittance tax will generate nearly $10 billion over the next decade. This revenue will be directed to the U.S. Treasury’s general fund.
Forecasters expect some shifts in remittance volumes or payment habits. Many customers—especially walk-in senders—may switch to using cards instead of cash to avoid the tax.
How UniTeller Defends Your Generosity
The One Big Beautiful Bill Act has shifted the remittances rules—for now.
However, American legislation is constantly in flux, and future administrations could end the Trump administration’s playbook. Should the Democrats take back the House and Senate during the 2026 midterms, they will be poised to reverse parts of the OBBBA.
Until then, key exemptions provide opportunities to avoid the remittance tax.
Here’s what customers visiting UniTeller’s agent locations need to know:
Transfers Funded with Cash, Money Orders, and Cheques
✔ Still supported
✘ Subject to the 1% federal excise tax
Card-Funded Transfers at Agent Locations
✔ Exempt from the new tax
✔ Still fast, secure, and reliable
UniTeller’s Commitment
Whether you pay in cash or with a card, UniTeller remains committed to:
- Clear communication
- Transparent pricing
- Helping you maximize the value your family receives
- Ensuring agents understand and apply the new tax rules correctly
UniTeller is committed to helping you maximize the power of your financial gifts. For concerns, speak to your local UniTeller agent, and they will be happy to answer any questions that you may have.
If you’re looking for an efficient digital app for your international money transfer needs, download UniTeller’s very own uLink Money Transfer App or visit https://ulink.com/.
