Tax Planning
Understanding U.S. Remittance & Excise Tax Proposals Under the One, Big, Beautiful Bill
From 2026, remittance providers and senders will face a 1% tax on certain remittances — and excise tax roles will expand. Know the proposals and rule-making underway in the U.S.
By NomadicTax Research Team • 5-8 min read • June 11, 2026
## Legislative Context: The One, Big, Beautiful Bill
Enacted in July 2025 as **Public Law 119-21**, this framework (also called the Working Families Tax Cuts Act) introduced sweeping changes spanning individual deductions, excise taxes, remittances, charitable giving, and inflation-indexed tax thresholds. ([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-act-of-2025-provisions?utm_source=openai))
## 1% Remittance Transfer Tax
- Effective **January 1, 2026**: a **1% tax** applies when money is sent overseas via physical instruments (cash, money orders, cashier’s checks, etc.). The burden falls on the sender, but remittance service providers may need to collect it. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-on-the-new-remittance-transfer-tax-established-under-the-one-big-beautiful-bill?utm_source=openai))
- Proposed regulations issued to clarify definitional rules — e.g. what counts as a “physical instrument,” how the liability and deposit schedule works. Comments from public due by **June 12, 2026**. ([irs.gov](https://www.irs.gov/newsroom/treasury-irs-issue-proposed-regulations-on-the-new-remittance-transfer-tax-established-under-the-one-big-beautiful-bill?utm_source=openai))
## Other Relevant One Big Beautiful Bill Provisions in Effect or Coming Into Effect
- **Excise tax rate adjustments**: e.g. tax on corporate stock repurchases, removal of certain components from excise tax rates starting 1 January 2026. ([irs.gov](https://www.irs.gov/businesses/small-businesses-self-employed/excise-tax?utm_source=openai))
- **Employer-provided childcare tax credit** increased maximums for 2026. ([irs.gov](https://www.irs.gov/newsroom/one-big-beautiful-bill-act-of-2025-provisions?utm_source=openai))
- Many inflation adjustments for individual and estate-related thresholds. ([irs.gov](https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2026-including-amendments-from-the-one-big-beautiful-bill?utm_source=openai))
## Which Stakeholders Are Most Impacted
- **Remittance service providers and senders overseas** must track deposits, file periodic returns, and understand their reporting obligations.
- **Businesses with excise tax exposure** (dyed fuel, stock repurchases, etc.) need to update internal accounting/monies.
- **Tax professionals**, particularly those assisting individuals with charitable giving, caregiving, or senior deductions, need to interpret new rules correctly.
## Action Steps to Comply or Plan Ahead
1. **Assess whether your transfers are covered**: if you send or facilitate international remittances using cash or similar instruments, determine your responsibility.
2. **Review internal payment/instrument types** — alter offerings if possible to avoid unnecessary burdens.
3. **File comments** if you’re a stakeholder or advocate — the proposed regulations are still in draft form and open to change.
4. **Budget for excise tax changes and higher withholding for certain payments**, particularly in sectors like transportation, fuel, telecommunications.
5. **Explore tax planning opportunities** under the enhanced provisions — charitable deductions, dependent care, senior deductions might offer benefits.
## Example Scenario
- *Maria*, a U.S.-based individual who sends family support overseas via cashier’s checks: she’ll need to be aware of the 1% tax and use remittance providers conforming to the new definitions.
- *Global Enterprises Inc.*, a domestic corporation repurchasing its own stock, may now face expanded excise tax depending on volume and classification.
## Conclusion
The U.S.’s rule-making under the One, Big, Beautiful Bill introduces **both new costs and opportunities** — especially around remittances and excise regimes. Keep tabs on proposed regulations, interpret definitions carefully, and update systems now to avoid surprises.