The new 1% U.S. federal money transfer tax on international remittances will take effect on January 1, 2026, and applies when senders fund transfers with cash or similar physical payment methods. This tax is charged in addition to regular transfer fees, but the recipient still receives the full amount. The tax aims to encourage digital, traceable payments. To avoid paying the 1% tax, senders should use debit/credit cards, bank accounts, or digital wallets like Apple Pay or Google Pay, as these methods are exempt from the tax. Visit: Cheque Express