U.S. Tax On Remittances Goes Into Effect On First Day Of 2026

The U.S. tax on remittances imposed by President Donald Trump's "One Big Beautiful Bill" has gone into effect on the first day of 2026.

Remittances declined in the months of 2025 for which there is data. They fell in September, which was the sixth decline in a row.

The Bank of Mexico noted in a report that funds declined by 2.7%, and that so far in 2025 the country had received $46.7, compared to $48.4 billion for the same period last year.

The decrease is significant for Mexico, especially considering that remittances represent 3.5 percent of the country's GDP and is a lifeline for 1 million residents of rural areas close to the border with the U.S.

The outlet also cited analysts who claim explanations lie with the Trump administration's immigration crackdown, as more than 90 percent of remittances to Mexico come from the U.S. The slowdown in the construction industry, which employs a large percentage of Mexican workers, can also help explain the situation.

After record levels of $64.7 billion in 2024, remittances to Mexico are projected to fall to $61 billion in 2025, a decline driven by both reduced U.S. labor participation among Mexican migrants and fear of deportation.

After the tax on remittances was approved, Mexican President Claudia Sheinbaum's administration said it will launch a special program to reimburse the tax.