The United States will impose a new 1% tax on remittances when they are made in cash in 2026. Learn who will be affected and how digital options can help you keep sending money home without extra costs.
What’s changing in 2026?
Beginning January 2026, money transfers that are funded with cash, money orders or cashier’s checks will include a new 1% federal tax. This update targets how the transfer is paid for in the United States. It does not depend on the country where your family receives the money.
For people who still pay in person, this means one thing. Sending money the way you’ve always done it may soon cost a little more.
Who will be affected by this new tax?
Only senders who fund their transfers in person with cash, money orders or cashier’s checks will be affected.
If your routine includes stopping by a store, standing in line and paying at the counter, the new tax will likely apply to you.
If you fund your transfers digitally through an app, this tax does not apply.
Why so many people are already switching to digital transfers
Across the US, senders are moving toward digital options for one simple reason. They make life easier.
Sending money from an app saves time, avoids unnecessary trips and helps you stay in control of your budget. With the upcoming transfer tax, digital payments also help you avoid the new cost altogether.
On top of that, sending money from home is more convenient for busy schedules and long workdays.
How to prepare before the new tax begins
You can start getting ready with a few simple steps.
1. Try out a digital money transfer app
Look for an app that feels reliable, easy to use and offers digital payment methods, an app like Elektra Go. Pick one that works well for your daily routine.
2. Check the app’s security and payout options
Make sure the app uses secure processes and that your family can receive the money easily in their country.
3. Practice a digital transfer ahead of time
Doing a small transfer now helps you get comfortable before the new tax goes into effect. Apps like Elektra Go are available directly in your phone’s app store.
How Elektra Go fits into this change
Elektra Go is an excellent option for people who want a simple and dependable way to send money from the United States without leaving home. Since the app uses digital payment methods, the upcoming tax on cash-funded transfers does not apply.
Elektra Go helps you send money in a secure and practical way that supports your family and fits your everyday needs.
Keep supporting your family without extra costs
The new tax on cash-funded money transfers may change how many people send money starting in 2026. The good news is that digital options make it easy to avoid that extra charge and keep helping the people you care about.
If you still send money in person, now is a great time to explore a simpler way to do it. All from your phone. All from home.
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