Quick answer: As of January 1, 2026, the U.S. charges a 1% federal tax on money sent abroad using cash, money orders, or cashier's checks. Transfers funded by a bank account or card are exempt — so the way you send money now decides whether your family receives 100% or 99% of what you worked for.

If you send money to Brazil, this is the most important change to understand this year. Let's break it down in plain English.

What is the 2026 remittance tax?

The tax was created by the "One Big Beautiful Bill Act" and applies to outbound international transfers of $15 or more. The original proposal was much harsher — it started at 5%, dropped to 3.5% in the House version in May 2025 after heavy lobbying, and finally landed at 1%. Small as that sounds, the U.S. Joint Committee on Taxation estimates it could collect roughly $10 billion between 2026 and 2034.

Who actually pays — and who doesn't

The tax targets payment methods, not people.

  • You pay the 1% when you send money with cash, money orders, or cashier's checks.
  • You're exempt when you fund the transfer with a bank account, debit card, or credit card.

That distinction is everything. BBVA Research found that 84% of Mexican migrants in the U.S. have a bank account and can avoid the tax simply by funding transfers digitally. The same is true for the Brazilian community — if your transfer is digital and bank-funded, you likely never pay this tax.

The simplest way to keep 100% of what you send

Use a digital, bank-funded transfer instead of handing cash over at a counter. Modern blockchain-based platforms are built exactly this way: transfers run through an app rather than a cash window, which places them on the exempt side of the law by design. You skip the tax and the hidden bank spreads in one move.

This is the model behind PTX Exchange, a new remittance platform built specifically for Latin American immigrants, launching soon for transfers to Brazil, Mexico, Guatemala, Colombia, and the Dominican Republic.

Why this matters beyond the 1%

The headline is the tax, but the real lesson is bigger: how you send money now matters as much as how much you send. Cash channels cost you twice — once in the new tax, and again in inflated exchange-rate spreads. Digital channels avoid both.

Frequently asked questions

Does the 1% tax apply to money sent to Brazil?

Yes. It applies to all outbound international transfers from the U.S. of $15 or more when sent via cash, money order, or cashier's check.

How can I avoid the remittance tax legally?

Fund your transfer with a U.S. bank account or card. Digital, bank-funded transfers fall under the exemption written into the law.

Do I pay the tax if I use a remittance app?

Generally no. If the app pulls funds from your bank account or card, the transfer is exempt. Cash drop-offs are what trigger the tax.