Starting January 1, 2026, outward remittances made by immigrants living in the US are required to pay a ‘remittance tax’ to the US Treasury. Trump’s One Big Beautiful Bill Act imposes a 1% tax on money transferred from the US to foreign nations. Called the ‘Excise tax on remittance transfers’, the tax rate was initially proposed to be 5%, but later on it was reduced to 3.5% of the amount sent by immigrants to their home countries. Before being passed by the Senate, the ‘remittance tax’ was further reduced to 1%. The US tax on remittance to India and all other nations becomes effective on January 1, 2025.