U.S. Tax Reform New Move: Starting in 2026, Cross-Border Remittances Will Be Subject to a 1% Transaction Tax

On January 1st next year, the United States will implement an important tax adjustment. According to the latest news, the Trump administration's new tax plan includes clear regulations regarding cross-border remittance services—remittance service providers will be required to pay a 1% tax on transfers that meet certain conditions.

**What types of remittances will be taxed?**

This U.S. tax policy is designed with considerable detail. Cross-border transfers conducted in cash or physical form will be subject to taxation, and the remittance sender will need to pay an additional 1% tax. However, transfers within the banking system are different—transactions made through bank accounts, using debit or credit cards are excluded from this tax, and no tax payment is required. This means that mainstream formal financial channels for remittance are temporarily unaffected.

**Who is the applicable target?**

The policy targets all individuals transferring funds overseas, including U.S. citizens and long-term residents. In other words, as long as the transfer involves remittance from the U.S. to abroad and is conducted via cash or physical tools, the cost within the 1% tax scope should be considered.

**Are there any special considerations for crypto asset transfers?**

In the crypto space, professionals generally believe that transfers of cryptocurrencies and stablecoins do not fall under taxable remittance transfers. However, this conclusion is currently in the theoretical stage. Whether there will be changes during actual regulatory enforcement remains to be seen, and further clarification from government authorities is expected.