Do you send money to someone in another country? If so, because of a lesser-known provision of the One Big Beautiful Bill Act, the money you send may be subject to a tax, beginning in 2026.

The 1% excise tax applies to transfers of cash or cash equivalents from a sender in the United States to a foreign recipient, via a remittance transfer provider. The remittance transfer provider will collect the tax as part of the transfer fee and then remit it quarterly to the U.S. Treasury.

Transfers made through a financial institution (such as a bank) or with a debit or credit card are excluded from the tax.