Remittance Tax Calculator
Find out if your international money transfer is subject to the new 1% federal remittance tax. Bank-account and debit/credit-card-funded transfers are exempt -- see your exact tax and total cost.
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Tax Status
Subject to the 1% excise tax -- 26 U.S.C. Sec. 4475(a) and (c) tax remittance transfers over $15 that the sender pays for with cash, a money order, a cashier’s check, or a similar physical instrument.
Estimated • Based on your inputs
1% Excise Tax on This Transfer
$3.00
Total Cost of This Transfer
$308.00
Detailed Breakdown
Disclaimer: This calculator provides estimates for informational purposes only. Results should not be considered financial, tax, or legal advice. Consult a qualified professional for your specific situation.
How This Calculator Works
Calculation methodology and assumptions
26 U.S.C. Sec. 4475, added by the One Big Beautiful Bill Act (Pub. L. 119-21, Sec. 70604), imposes a 1% federal excise tax on the amount of a "remittance transfer" -- an electronic transfer of funds sent by a sender in a U.S. state, territory, or D.C. to a designated recipient in a foreign country -- for transfers made after December 31, 2025. The tax is calculated on the amount transferred only, never on the provider's separate transfer fee, and is legally owed by the sender (the provider collects it and remits it to the IRS quarterly; if the provider fails to collect it, the provider becomes secondarily liable). Critically, Sec. 4475(c) limits the tax to transfers the sender pays for with cash, a money order, a cashier's check, or a similar physical instrument, and Sec. 4475(d) separately confirms the tax does not apply to transfers funded by withdrawing from an account at a U.S. bank, credit union, or other Bank-Secrecy-Act-regulated institution, or funded with a debit or credit card issued in the United States -- so routine bank wires, ACH transfers, and card-funded transfers are excluded entirely, regardless of size. Sec. 4475(e)(1) borrows the definition of "remittance transfer" from the Electronic Fund Transfer Act (15 U.S.C. Sec. 1693o-1(g)), whose implementing regulation (12 CFR Sec. 1005.30(e)(2)(i)) excludes transfers of $15 or less from the definition entirely, so those small transfers are outside the tax's reach regardless of funding method.
How to Use This Taxes Calculator
- 1
Enter your information
Input the required values. The calculator is pre-filled with your state's data where applicable — adjust to match your specific situation for accurate results.
- 2
Review default values
Check that the pre-filled state-specific data (tax rates, median values, etc.) matches your local situation. You can override any value to customize the calculation.
- 3
Analyze your results
Review the calculated outputs. Use the breakdown table to understand exactly how each factor contributes to the final result.
- 4
Compare across states
Use the related state calculators linked below to compare results across different states — useful for relocation planning and financial comparison.
Example Calculation
Here's a practical example using this state's data.
The calculator uses state-specific public data and documented estimates where available — including tax rates, median values, and cost benchmarks — to produce a personalized estimate for the inputs you provide.
Result: Results will vary based on your individual inputs. Use this calculator as a starting point, then adjust the values to test different scenarios. The methodology section below explains exactly how each result is calculated.
What Affects Your Results
State-Specific Inputs
Each state has unique rates, fee schedules, and regulatory requirements that can affect results. This page's methodology and source card identify which inputs are sourced, modeled, or user-adjustable.
Income Level
Many calculations are income-dependent due to progressive tax brackets, phase-outs, or income-based eligibility thresholds. Higher income doesn't always mean proportionally higher costs.
Local Variations
State averages may not reflect your specific city or county. Local taxes, fees, and market conditions can vary ±20% from state averages.
Annual Changes
Tax rates, fee schedules, and regulations change. Check the recorded source-review date and verify critical numbers with the relevant agency.
Tips & Best Practices
- Always verify pre-filled values against your actual data. State averages are a good starting point but your situation may differ significantly.
- Run multiple scenarios by adjusting key inputs to see how changes affect your results. This helps with planning and decision-making.
- Compare your results across states using the related calculators linked below — especially valuable if you're considering relocating or doing business in another state.
- Bookmark this page to recalculate periodically as rates change. Check the page source card and review date before relying on a pre-filled value.
- Consult a qualified professional for major financial decisions. These calculators provide estimates based on standard formulas — a CPA or financial advisor can factor in your complete financial picture.
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StateCalc Team
Editorial Team
The StateCalc team builds free financial calculators using data from official government sources including the IRS, U.S. Census Bureau, BLS, and state revenue departments. All formulas are validated by an automated test suite and cross-referenced against published data.
Our editorial standardsFrequently Asked Questions
What is the remittance tax?
It is a new 1% federal excise tax under 26 U.S.C. Sec. 4475, added by the One Big Beautiful Bill Act (signed July 4, 2025), on remittance transfers -- electronic transfers of funds sent by someone in the U.S. to a recipient in a foreign country. It applies to transfers made after December 31, 2025 and is calculated on the amount sent, not on the provider’s separate fee.
Is a bank wire transfer subject to the remittance tax?
No, generally not. 26 U.S.C. Sec. 4475(d)(1) excludes transfers funded by withdrawing from an account at a U.S. bank, credit union, or other financial institution subject to the Bank Secrecy Act, which covers most bank wires and ACH-based international transfers, regardless of the amount sent.
Does the remittance tax apply if I pay with a debit or credit card?
No. 26 U.S.C. Sec. 4475(d)(2) specifically excludes remittance transfers funded with a debit or credit card issued in the United States. The tax under Sec. 4475(c) applies only to transfers funded with cash, a money order, a cashier’s check, or a similar physical instrument.
Is there a minimum transfer amount before the tax applies?
Yes. The tax borrows its definition of "remittance transfer" from the Electronic Fund Transfer Act, and the implementing regulation (12 CFR Sec. 1005.30(e)(2)(i)) excludes transfers of $15 or less from that definition -- so transfers of $15 or less are not subject to the tax at all, regardless of funding method.
Who actually pays the remittance tax?
The sender is legally liable for the tax under 26 U.S.C. Sec. 4475(b), but the remittance transfer provider (the money-transfer company) must collect it from the sender at the time of the transfer and remit it to the IRS quarterly. If the provider does not collect the tax, the provider itself becomes secondarily liable for it.
Does the remittance tax apply to sending money within the United States?
No. The tax only applies to a "remittance transfer," which by definition is sent to a designated recipient located in a foreign country. Domestic transfers between U.S. locations are not remittance transfers and are not subject to Sec. 4475.
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