New Tax in the US Could Mean Less Money Coming to Jamaica
Starting December 31, 2025, Jamaicans living in the US who send money home will be charged a new tax. It’s a small fee—1%—but it could have big effects on families and small businesses here.
Let’s break it down.
What’s Happening?
A new law in the United States says that anyone sending money as cash, money orders or similar services will have to pay a 1% tax. So, for every US$100 sent, $1 will go to the US government.
Who Will This Affect?
- Green card holders and visa holders: They're the ones affected. US citizens won’t pay the new tax when sending remittances.
- Cash senders only: People using services like MoneyGram or Western Union will pay the tax. Bank wires or debit/credit card remittances are exempt.
- Unbanked and elderly Jamaicans abroad: Those who depend on cash services may be forced to pay more or seek informal alternatives.
Why Should We Care?
Jamaica gets over US$3 billion every year from remittances, mostly from Jamaicans in the US. These funds make up 17 to 20% of the country’s economy.
If just US$2 billion is sent in a year, US$20 million will go to the US Treasury—money that would otherwise be circulating in local communities.
What Can We Do?
- Talk to your relatives abroad. Let them know about the tax and ask if they can try using a bank or app instead.
- Learn more about digital money options. Remittance companies often have mobile or online services that might not charge this tax.
- Be careful. Don’t send money through people you don’t know or trust.
Bottom Line
This 1% tax might not sound like much, but for families that depend on every dollar, it adds up.
It’s also money leaving Jamaica and going back to the US, a shift that could hurt our communities over time.
For now, the best thing we can do is stay informed, talk with family overseas and keep looking for safe and affordable ways to receive money.
