Sending money to Mexico just got more expensive— here’s what to know

Money transferred from the U.S. to Mexico will be subject to a new tax starting on Jan. 1 under the Trump administration’s Big Beautiful Bill law.

All remittances sent from the U.S. will have a 1% tax collected by the financial institution and sent to the federal government. It only applies to cash and check transfers — not money sent online.

But that could still mean a lot of money collected from remittances sent by Texas residents, the second-largest state by value of transfers to Mexico.

Mexico’s national bank, Banxico, showed that $2.3 billion of remittances from Texas to Mexico were sent in July. More than $66 billion in remittances were sent to Mexico from around the world in 2024, the vast majority from Mexicans working in the U.S. who sent money back to their families.