US Edition
Big, Beautiful Rollback: US Lowers Remittance Tax to 3.5%, Easing NRIs and H-1B Workers Burden, How It Will Impact India
- The U.S. House of Representatives passed a bill on May 22, 2025, to impose a 3.5% excise tax on money sent abroad by non-citizens.
- The tax rate was reduced from an initially proposed 5% following concerns from Indian and Mexican communities affected by the new financial burden.
- This legislation increases oversight on transfers over $5,000 per day, impacting NRIs, H-1B holders, green card holders, and others sending money to countries like India.
- The Global Trade Research Initiative projects that implementing the tax could reduce remittances to India by 10–15%, leading to an annual deficit of $12–18 billion, and may trigger a temporary surge in remittances before 2026.
- If enacted, the tax will take effect January 1, 2026, potentially reducing foreign exchange inflows for India and raising costs for NRIs, while Mexico opposes the tax citing double taxation concerns.
20 Articles
20 Articles
New U.S. Remittance Tax: How Much It Would Cost to Send $100 if It Came Into Effect
The U.S. House of Representatives passed President Donald Trump’s “Beautiful Big Bill,” which will now pass to the Senate. If passed, it would imply a new tax on remittances for migrants, but it would not be 5%, as originally stipulated. How much will the tax on remittances be in the U.S.? During a session of more than 24 hours, the mega-budget bill won 215 votes in favor, 214 against and one abstention in the House of Representatives. The Repub…
Any remittance tax is 'absolutely unjust,' Sheinbaum says, after US House lowers proposed tax to 3.5%
The U.S. House of Representatives on Thursday passed legislation that would impose a 3.5% remittance tax on funds sent abroad by individuals who are not U.S. citizens, disappointing some Mexican officials. Whereas Mexico’s Ambassador to the U.S. Esteban Moctezuma celebrated the reduction of the tax from the initial proposal of 5%, Mexican President Claudia Sheinbaum has said that any tax is unacceptable, arguing that such a measure would violate…
Approves the House of Representatives by a Vote Imposed of 3.5% on Remittances
Washington. The Republican-controlled U.S. House of Representatives approved on Thursday – with 215 votes in favour and 214 against – the budget bill that includes a levy on remittances from undocumented workers, despite the efforts made by members of the Mexican government and legislators from both Mexico and the United States, to expose the impact on lower-income workers and their families.
Trump's Remittance Tax: How Much Money Will the U.S. Receive for Sending Dollars to Mexicans?
Analysts warn that the 3.5% tax on remittances could cause migrants to look for other methods to send their money from the US to Mexico, which 'opens the door' for organized crime to get involved.
Remittance Tax Pressure Will Rise; Sheinbaum: We're Looking for Zero
Ximena MejíaThe Mexican government will send a team to the U.S. next week to negotiate that the U.S. Senate will not approve a 3.5% tax on remittances foreseen in Donald Trump's "Single, Great and Beautiful Tax Initiative." On Thursday, and in a closed vote, the House of Representatives approved the mega-budgetary bill that crystallizes the Republican government's priorities, as a historic spending on border security measures and immigration con…
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