What is a remittance or excise tax?
A remittance refers to the transfer of money from one country to another, and an excise tax is a tax imposed on that transaction. In other words a remittance or excise tax is a tax on sending money abroad.
Does the US have a remittance tax?
From January 1, 2026, certain international transfers sent from the US funded by physical payment methods, such as cash, checks or money orders, will be charged a 1% tax. This is due to the recently passed One Big Beautiful Bill Act.
Does this remittance tax apply to Wise?
Any transfers you send with Wise in the future won’t be subject to this new tax as it doesn’t apply to the payment methods we offer.
You can continue to use Wise as you have in the past. You’ll get the same low fees and mid-market rate, and you won’t pay any additional taxes. Read more about the US remittance tax on the Wise blog here.