Starting January 1, 2026, a new U.S. law will impose a 1% remittance tax on certain international money transfers. This change affects senders who pay with cash, money orders, or cashier’s checks. Consequently, a $1,000 transfer paid in cash would add $10 in tax.

However, not all payment methods are taxed. For example, transfers using debit or credit cards, bank accounts, digital wallets, and prepaid cards are exempt. Therefore, choosing these options can help you avoid the extra cost.

If you normally send money with cash, money orders, or cashier’s checks, this tax will affect your transactions. Nevertheless, there are simple alternatives. For instance, paying with a debit card at retail locations avoids the 1% tax. Similarly, using a Western Union Prepaid Visa® Card lets you load cash onto the card and send money without the tax.

In addition, sending online via WesternUnion.com or the app is tax-free if you pay with a debit card, credit card, or bank account. This method also allows you to transfer money from home, saving time and effort.

Importantly, the remittance tax only affects the sender’s payment method. Your friends or family abroad will receive the full amount. Thus, the amount your receiver gets stays the same, regardless of the tax.

Western Union encourages users to plan ahead to minimize costs. By selecting the right payment method, you can continue sending money affordably and reliably. Furthermore, the company offers tools such as the Prepaid Visa Card and mobile app to support tax-free transfers.

Key points to remember: The 1% remittance tax starts January 1, 2026. It only applies to cash, money orders, or cashier’s checks. Alternative payment options include debit or credit cards, bank accounts, digital wallets, and prepaid cards.

Therefore, sending money does not have to be more expensive. Sign up for a Western Union Prepaid Visa Card or use the app to avoid the tax. This ensures your transfers remain cost-effective and convenient for the people who matter most.

The Western Union Prepaid Visa® Card is issued by Pathward®, N.A., Member FDIC, under a Visa license. Before registration, it can be used only in the U.S. After registration, it works wherever Visa debit cards are accepted.

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