Alert for possible remittance tax: This is how much you would have to pay extra to send money to Mexico.

If you regularly send money to loved ones in Mexico, your transfers may soon get more expensive—especially if you’re undocumented.

This week, the U.S. House of Representatives passed the ‘One Big, Beautiful Bill’, a sweeping piece of legislation backed by Republicans that introduces several strict measures on immigration. But tucked inside is a proposal that could hit hard-working immigrant families right where it hurts most: their remittances.

The bill is now heading to the Senate. If passed there, it will go to President Donald Trump for final approval and could become law shortly after.

What’s the new remittance tax?

Under the proposed legislation, anyone sending money abroad through remittance services like Western Union or MoneyGram could be required to pay a 5% tax on each transfer.

Let’s break that down:

This would directly affect millions of immigrants who regularly send money back home to support their families.

Who will be exempt from the remittance tax?

Not everyone will be hit by this new fee. According to Section 112105 of the bill, only undocumented immigrants would be subject to the tax.

U.S. citizens and nationals would be exempt—but only if they send funds through a “qualified provider” and can prove their legal status.

A provider is considered “qualified” if it signs a formal agreement with the U.S. Treasury Department to verify that senders are citizens or nationals. However, the bill offers no clear explanation of how these providers are supposed to verify someone’s immigration status.

That gap in the legislation has immigration advocates and legal experts raising red flags over potential misuse, privacy issues, and discrimination.

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