Details of Public Law 119-21, section 70604 , One Big Beautiful Bill Act

The section imposes a new tax on remittance transfers (cash, money orders, cashier’s checks, or other similar physical instruments) made to a person located in a foreign country. The amount of the tax would be equal to 1 percent of the amount of the transfer and would be imposed on the sender of the transfer.

The tax is not imposed on transfers made by a debit or credit card which is issued in the United States, or from funds withdrawn from a financial institution.

FTB does not administer the remittance transfer excise tax.