U.S. Tax Reform to Launch in 2026: Cross-Border Remittances Will Face 1% Tax

The U.S. government is set to implement a major tax reform starting January 1, 2026, directly involving cross-border fund flows. According to the latest policy disclosures, this round of tax adjustments by the Trump administration will target certain remittance transactions.

Which Remittance Methods Require Taxation

The new policy mainly targets overseas transfers made via cash or physical payment tools, with remittance service providers required to collect a 1% tax. This means that if you choose to remit funds abroad using cash or physical means, you will be subject to taxation.

In contrast, the following transaction types are not affected by this tax:

• Direct transfers between bank accounts
• Debit card transactions
• Credit card payments

Simply put, as long as you use legitimate financial channels (bank cards, transfers), you can avoid this tax.

Scope of Applicable Individuals

This 1% tax policy applies to all overseas remitters, regardless of their identity. U.S. citizens, permanent residents, and remitters of other nationalities are all within the regulatory scope. In other words, as long as you remit funds outside the U.S. and use cash/physical methods, you may be taxed.

How Cryptocurrency and Stablecoins Are Handled

Currently, the policy document’s stance on crypto assets is somewhat vague. According to professional tax experts, cryptocurrency transfers and stablecoin transfers are temporarily not classified as taxable remittances. However, whether the policy will be adjusted during implementation and how “crypto remittance” will be defined remains uncertain.

This leaves a space for observation for the broader crypto community—at least until the official policy details are released, fund movements through blockchain channels may still be in a gray area.