New US Policy Imposes 1% Tax on Cash Remittances
A new 1% excise tax on cash-based remittance transactions took effect on 1 January 2026 in the United States. Specifically, the tax applies to cash deposits, money orders, and cashier’s checks at physical agent locations. Importantly, digital transfer platforms like EzyRemit are exempt from this tax.
Why It Matters
The United States sends over $80 billion internationally each year. The new tax impacts:
- $1,000 cash transfer — additional $10 tax
- $5,000 cash transfer — additional $50 tax
- Regular monthly senders — $120+ per year in additional taxes
How EzyRemit Users Are Protected
EzyRemit operates as a fully digital platform. Transfers are classified as digital bank-to-bank transactions and are completely exempt from the 1% cash remittance tax.
- Zero additional tax — no excise tax applies to digital transfers
- Lower overall costs — flat $5 fee versus cash agent fees + new tax
- Full compliance — registered with FinCEN (US) and AUSTRAC (Australia)
- Faster delivery — minutes versus 1-3 days for cash methods
“This policy change underscores the advantages of digital remittance platforms over cash-based methods,” said Allan Nguyen, CEO and Founder of EzyRemit.
Visit www.ezyremit.com to start sending digitally.
About EzyRemit
EzyRemit is a digital remittance company headquartered in Sydney, Australia. The platform is registered with AUSTRAC (Australia) and FinCEN (United States), supporting transfers to over 150 countries.