3.5% US Remittance Tax for Non-US Citizens

The US House of Representatives has passed the ‘One Big, Beautiful Bill Act’ approving remittance tax of 3.5% on remittance made by Non-US Citizens. Initially the proposed Tax Rate was 5%. The same has now been reduced to 3.5%. This is effective from January 1, 2026.

3.5% Remittance Tax is applicable on Non-US Citizens including:

• H-1B and L-1 Visa Holders
• F-1 students and OPT wokers
• Green card Holders unless naturalised
• Other Visa Holders who are not US Citizens

Is there any minimum threshold where the tax is not applicable?

No, there is no minimum exemption threshold, and the Remittance Tax is applicable even on the smallest transaction.

How will it work?

Money will be automatically deducted from your bank/money transfer application at the time of making the transaction. For Example, if you being Non-US Citizens are transferring 100 USD to India, 5% will be deducted, and you will be able to transfer 95 USD only.