The One Big Beautiful Bill Act imposes a 1% excise tax on certain money transfers from the United States. Here's what it means — and how to avoid it legally.
The One Big Beautiful Bill Act introduced a 1% excise tax on certain transfers of money from the United States to foreign countries. The tax went into effect in 2026.
The tax specifically targets physical cash remittances — transactions where cash changes hands. It does not apply to electronic or digital transfers.
Digital and electronic transfers are fully exempt.
Wise
Digital bank transfer — fully exempt
Remitly
Digital transfer — fully exempt
Revolut
Digital transfer — fully exempt
WorldRemit
Digital transfer — fully exempt
Bank wire (SWIFT)
Electronic transfer — fully exempt
Zelle / ACH
Electronic transfer — fully exempt
If the recipient picks up cash, the tax likely applies.
Western Union (cash pickup)
Physical cash transfer — 1% tax applies
MoneyGram (cash pickup)
Physical cash transfer — 1% tax applies
Walmart2Walmart
Cash-based transfer — 1% tax applies
Use a digital transfer service
Wise, Remitly, Revolut, and WorldRemit are all exempt because they transfer money electronically to a bank account.
Avoid cash pickup
Even if you use a provider like Western Union, choosing bank deposit instead of cash pickup may exempt the transfer.
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Digital providers are often cheaper than cash services anyway — you save both on fees and on the 1% tax.
No. The tax only applies to physical cash remittances. Electronic and digital transfers to bank accounts are exempt.
No. Wise transfers money electronically between bank accounts and is fully exempt from the 1% excise tax.
The tax is collected from the sender at the point of transaction by the money transfer operator.
Yes, if you use a digital provider like Wise or Remitly. The tax applies to cash pickup transactions, not bank deposits.
All providers on RateCurb use digital transfers — fully exempt from the 1% remittance tax.
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