Particle.news
Download on the App Store
7 ARTICLES
·
6d ago

U.S. House Passes 3.5% Remittance Tax on Non-Citizens in Narrow Vote

The revised tax, part of the One Big Beautiful Bill Act, targets international money transfers by immigrants and now moves to the Senate for approval.

Trump's recently proposed clause, known as the “Excise tax on remittance transfers,” levies a 5% excise duty on remittance transfers.
Image
Image
Image

Overview

  • The U.S. House approved the One Big Beautiful Bill Act in a 215-214 vote, including a 3.5% excise tax on remittances sent abroad by non-U.S. citizens.
  • The tax rate was reduced from an initial 5% to 3.5% through a last-minute Manager’s Amendment before the House vote on May 23, 2025.
  • The tax exempts U.S. citizens and nationals but applies to legal immigrants, such as green card holders and visa workers, starting January 1, 2026.
  • Experts predict a spike in remittances before the tax takes effect, with some funds potentially shifting to informal transfer channels to avoid the levy.
  • India, the largest recipient of U.S. remittances, is assessing the potential impact, as remittances from the U.S. totaled over $33 billion in 2023–24.