Overview
- The tax, now in force, applies to remittances paid with physical instruments such as cash, money orders and cashier’s checks, and it is charged to the sender at the point of payment.
- Western Union says a $1,000 transfer paid in cash at a retail location incurs a $10 tax, and the recipient’s payout remains unchanged.
- Electronic payment methods are exempt, including debit and credit cards, bank accounts, digital wallets like Apple Pay and Google Pay, and certain prepaid cards.
- Analysts expect a limited effect on overall flows given that roughly 85% of Mexicans in the U.S. have bank accounts, with UNAM-based estimates pointing to 2025 remittances near $62 billion and potential 2026 tax payments of about $360 million from cash senders.
- Mexico’s Finabien debit option offers a fixed $2.99 fee per transfer with daily and monthly caps of $2,500 and $10,000, providing an alternative to taxable cash payments.