Send Money Tax-Smart This Holiday Season via Cheque Express
The holidays are seen as the busiest time of year for sending money home. Between Thanksgiving, Christmas, Día de los Reyes, and New Year’s, your loved ones back home count on extra support for gifts, food, and travel. But this year, keep one thing in mind while transferring money: since January 1, 2026, many international money transfers made from the U.S. carry a new federal remittance tax.
The good news is that the tax is small and easy to plan for once you understand it. In this guide, we’ll explain what the 1% remittance tax is, which transfers it applies to, and simple ways to send money abroad smartly this holiday season. We’ll also show how Cheque Express keeps every transfer clear, so you know exactly what you’re paying before you send.
What the New Remittance Tax Means for Your Holiday Transfers
Often called the One Big Beautiful Bill remittance tax, it comes from the law signed in July 2025. It adds a 1% federal tax to certain transfers sent from the U.S. to other countries. Under the most recent remittance tax rules for 2026, the tax rate doesn’t depend on your citizenship or immigration status. It depends only on how you pay for the transfer.
1. Which Money Transfers Are Taxed
The money transfer tax applies to international transfers paid for with cash, a money order, a cashier’s check, or a similar physical payment. Transfers paid from a U.S. bank account, or with a debit or credit card issued in the U.S., are not taxed. Transfers sent within the U.S. are not affected either.
The tax is 1% of the amount you send, not counting the service fee. So if you send $500 in cash, the tax is $5. If you send $1,000, it’s $10. The sender pays it, and the money transfer company collects it at the time of the transfer and passes it to the IRS. Your family receives the full amount you sent.
2. Why the Holiday Season Makes It Matter More
For most families, the tax on a single transfer is a few dollars. But during the holidays, many people send money more often and in larger amounts. One transfer for Christmas gifts, another for a New Year’s celebration, and another for travel can add up, along with the fees on each one.
That’s why planning ahead pays off. When you are fully aware about the cost of each transfer, including fees, the exchange rate, and tax, you can easily decide how much to send and when, and make sure that your money reaches the people you love.
How Cheque Express Helps You Send Money in a Tax-Smart Way
At Cheque Express, we want you to feel confident every time you send your hard-earned money home. The new tax is just one extra part of the cost, but our team is here to make it simple for you. Visit any of our stores, and we’ll explain your options in plain language before you send a single dollar.
1. Clear Costs Before You Send
Before you complete a transfer, our team shows you the fee, the exchange rate, and any applicable tax, so there are no surprises or hidden fees. You’ll know exactly how much your family will receive in their local currency. We also track every transfer from start to pickup, and you get a receipt with all the details to keep for your records.
If you are curious about which payment methods are available at your store, just ask. We’ll help you choose the option that best suits you.
2. Some Smart Ways to Plan Your Holiday Transfers
A little focused planning can help you save. Instead of sending several small amounts at the last minute, consider sending one planned transfer early in the season. That can mean fewer fees and less stress when stores and pickup locations get busy before Christmas. Sending early also gives your family time to shop before holiday prices rise. If you’re also helping your family prepare for November, see our guide to sending money home for Día de los Muertos.
Don’t forget our loyalty rewards program. Every international money transfer earns you points you can use to save on future transfers. During a busy holiday season, those rewards can help offset the extra costs.
Conclusion
The new remittance tax doesn’t have to change how you support your family. Once you know how it works, it’s just one more cost to plan for, like a fee or an exchange rate. With clear pricing, tracked transfers and rewards on every send, Cheque Express makes it easy to keep your holiday giving smart and stress-free.
Ready to plan your holiday transfers? Visit your nearest Cheque Express today, and our team will help you send money home the smart way.
Frequently Asked Questions
The remittance tax is a 1% federal tax on money sent from the U.S. to another country but this applies only when you pay with cash, a money order, or a cashier’s check. It started on January 1, 2026. To understand this better, have a look at this example: sending $500 in cash adds $5 in tax, and sending $1,000 adds $10.
Yes, there are some cases. As of January 1, 2026, according to a rule, a 1% tax applies to sending money to Mexico and other countries only when you pay with cash, a money order, or a cashier’s check. Transfers paid from a U.S. bank account or with a U.S.-issued debit or credit card are not taxed.
The 1% remittance tax only applies to transfers paid with cash, a money order, or a cashier’s check. If you pay from a U.S. bank account or with a debit or credit card issued in the U.S., the tax does not apply. Ask our team which payment options are available at your nearest Cheque Express store.
Anyone who sends money from the U.S. to a different country and pays with cash, a money order, or a cashier’s check, whether they are a U.S. citizen or not. The money transfer company collects the tax the moment you send the money, and your family receives the full amount you transferred.
No, that’s not the case. The tax only applies to transfers sent from the U.S. to another country. Domestic money transfers to family and friends within the U.S. are not affected.
