New US Remittance Tax Set to Impact Belizean Families

Belizean households that rely on financial support from relatives living and working in the United States will face an additional cost on remittances beginning January 1, 2026.  This follows the implementation of a 1 % federal excise tax on certain money transfers under the U.S. One Big Beautiful Bill Act signed into law by President Donald Trump in July 2025. The tax, which will apply to remittances funded with cash, money orders, and cashier’s checks, adds to existing transfer fees and could reduce the amount of money arriving in Belizean households.  For Belize, remittances form a steady source of foreign exchange for Belize’s economy and a financial lifeline for many families. According to Central Bank data, remittance inflows to Belize reached approximately US $152 million in 2024, the highest level on record, rising from around US $147 million in 2023. As a share of economic output, remittances accounted for nearly 4.8 % of Belize’s gross domestic product (GDP) in 2024, underscoring their importance relative to the broader economy. While detailed figures for 2025 remittances are not yet available, broader regional trends point to continued growth in remittance flows across Latin America and the Caribbean in both 2024 and 2025.  Experts warn that even a seemingly modest 1 % tax could have outsized effects on low-income households in Belize, where many families depend on small, regular transfers from relatives in the U.S. For example, a typical US$500 transfer would incur an extra US$5 in government tax under the new law. The tax applies exclusively to outbound transfers from the United States sent using specific physical instruments; transfers funded through bank accounts, debit/credit cards or digital wallets are exempt. As the remittance tax takes effect in just days, financial institutions and remittance service providers are gearing up to comply with new reporting and collection requirements, while advocacy groups continue to call for Belizean diaspora communities to be informed about ways to minimise costs, such as choosing electronic or bank-based transfers.