New Draft of U.S. Law Cuts Remittance Tax to 1%, Exempts Bank and Card Transfers

Contributor: Taxing remittances is a big risk for very little reward

It might seem like easy money to tax migrants, but that doesn’t make it smart policy. The House's budget and the Senate's both go down this dangerous path.

Indians to benefit as Trump's Big Beautiful Bill reduces remittance tax to 1%

US President Donald Trump's flagship One Big Beautiful Bill Act, which passed a key Senate hurdle, cut remittance tax to 1%, from the proposed 5%. The 5% rate sparked widespread concern among Indian professionals in the US. The reduced tax rate will be a big relief for them and the NRIs who send money home.

US Senate draft reduces remittance tax to 1% from proposed 3.5%

In a significant move offering relief to Non-Resident Indians (NRIs), the US Senate has reduced the proposed remittance transfer tax to 1% from an earlier 3.5% in its latest draft of the One Big Beautiful Bill Act.

US Senate Reduces Remittance Tax to 1% From 3.5% in Relief for NRIs | 🌎 LatestLY

The US Senate has proposed to reduce remittance transfer tax from 3.5 per cent to just 1 per cent, offering considerable relief to non-resident Indians (NRIs). The revised draft of US President Donald Trump’s 'One Big Beautiful Bill Act" excludes transfers from accounts held at banks and other financial institutions 🌎 US Senate Reduces Remittance Tax to 1% From 3.5% in Relief for NRIs.

US Senate Proposes Major Relief For NRIs: Remittance Tax Slashed To 1 Per Cent In New Draft Bill

Notably, the Senate proposal excludes transfers from accounts held at banks and other financial institution and also excludes transfers made via debit and credit cards issued in the United States.