A newly introduced bill in the U.S. Congress could significantly change how immigrant workers, including Non-Resident Indians (NRIs)—send money back home. If passed, the legislation would impose a 5% tax on international remittances by non-citizens, potentially affecting millions.

For Indian B2B visa consultants, tax advisors, and global mobility planners, this proposed tax brings urgent financial implications that your clients must prepare for, especially those on H-1B, F-1, or green card statuses.

What Is the 5% U.S. Remittance Tax?

Formally introduced by House Republicans in May 2025, the proposed bill suggests a 5% excise tax on money transferred abroad by non-U.S. citizens. That includes those on:

Green cards
H-1B, H-2A, H-2B, and F-1 visas
Non-citizen workers and residents
The tax would be automatically deducted at the point of transaction by banks, wire services, and digital platforms like Western Union, PayPal, and MoneyGram.

U.S. citizens are exempt.

Who Will Be Impacted the Most?

This tax primarily affects the 40+ million foreign nationals working in the U.S.—many of whom regularly send funds to support families overseas.

• NRIs are among the most impacted.

India receives more than $83 billion in annual remittances from abroad, much of it from the U.S.

Example:
Sending ₹1 lakh ($1,200) could now cost an extra ₹5,000 ($60) in taxes if this law is passed.

Feature	Current Rule	Proposed Rule
Tax on remittances	None	5% for non-citizens
Who pays?	No one	Non-citizens only
Collection method	Not applicable	By financial service at the point of transfer
U.S. citizens affected?	No	Exempt

Timeline: When Could This Happen?

A newly introduced bill in the U.S. Congress could significantly change how immigrant workers, including Non-Resident Indians (NRIs)—send money back home. If passed, the legislation would impose a 5% tax on international remittances by non-citizens, potentially affecting millions.

For Indian B2B visa consultants, tax advisors, and global mobility planners, this proposed tax brings urgent financial implications that your clients must prepare for, especially those on H-1B, F-1, or green card statuses.

What Is the 5% U.S. Remittance Tax?

Formally introduced by House Republicans in May 2025, the proposed bill suggests a 5% excise tax on money transferred abroad by non-U.S. citizens. That includes those on:

Green cards

U.S. citizens are exempt.

Who Will Be Impacted the Most?

This tax primarily affects the 40+ million foreign nationals working in the U.S.—many of whom regularly send funds to support families overseas.

• NRIs are among the most impacted.

India receives more than $83 billion in annual remittances from abroad, much of it from the U.S.

Example:
Sending ₹1 lakh ($1,200) could now cost an extra ₹5,000 ($60) in taxes if this law is passed.

Feature	Current Rule	Proposed Rule
Tax on remittances	None	5% for non-citizens
Who pays?	No one	Non-citizens only
Collection method	Not applicable	By financial service at the point of transfer
U.S. citizens affected?	No	Exempt

Timeline: When Could This Happen?

A newly introduced bill in the U.S. Congress could significantly change how immigrant workers, including Non-Resident Indians (NRIs)—send money back home. If passed, the legislation would impose a 5% tax on international remittances by non-citizens, potentially affecting millions.

For Indian B2B visa consultants, tax advisors, and global mobility planners, this proposed tax brings urgent financial implications that your clients must prepare for, especially those on H-1B, F-1, or green card statuses.

What Is the 5% U.S. Remittance Tax?

Formally introduced by House Republicans in May 2025, the proposed bill suggests a 5% excise tax on money transferred abroad by non-U.S. citizens. That includes those on:

Green cards

U.S. citizens are exempt.

Who Will Be Impacted the Most?

This tax primarily affects the 40+ million foreign nationals working in the U.S.—many of whom regularly send funds to support families overseas.

• NRIs are among the most impacted.

India receives more than $83 billion in annual remittances from abroad, much of it from the U.S.

Example:
Sending ₹1 lakh ($1,200) could now cost an extra ₹5,000 ($60) in taxes if this law is passed.

Feature	Current Rule	Proposed Rule
Tax on remittances	None	5% for non-citizens
Who pays?	No one	Non-citizens only
Collection method	Not applicable	By financial service at the point of transfer
U.S. citizens affected?	No	Exempt

Timeline: When Could This Happen?

A newly introduced bill in the U.S. Congress could significantly change how immigrant workers, including Non-Resident Indians (NRIs)—send money back home. If passed, the legislation would impose a 5% tax on international remittances by non-citizens, potentially affecting millions.

For Indian B2B visa consultants, tax advisors, and global mobility planners, this proposed tax brings urgent financial implications that your clients must prepare for, especially those on H-1B, F-1, or green card statuses.

What Is the 5% U.S. Remittance Tax?

Formally introduced by House Republicans in May 2025, the proposed bill suggests a 5% excise tax on money transferred abroad by non-U.S. citizens. That includes those on:

Green cards

U.S. citizens are exempt.

Who Will Be Impacted the Most?

This tax primarily affects the 40+ million foreign nationals working in the U.S.—many of whom regularly send funds to support families overseas.

• NRIs are among the most impacted.

India receives more than $83 billion in annual remittances from abroad, much of it from the U.S.

Example:
Sending ₹1 lakh ($1,200) could now cost an extra ₹5,000 ($60) in taxes if this law is passed.

Feature	Current Rule	Proposed Rule
Tax on remittances	None	5% for non-citizens
Who pays?	No one	Non-citizens only
Collection method	Not applicable	By financial service at the point of transfer
U.S. citizens affected?	No	Exempt

Timeline: When Could This Happen?

A newly introduced bill in the U.S. Congress could significantly change how immigrant workers, including Non-Resident Indians (NRIs)—send money back home. If passed, the legislation would impose a 5% tax on international remittances by non-citizens, potentially affecting millions.

For Indian B2B visa consultants, tax advisors, and global mobility planners, this proposed tax brings urgent financial implications that your clients must prepare for, especially those on H-1B, F-1, or green card statuses.

What Is the 5% U.S. Remittance Tax?

Formally introduced by House Republicans in May 2025, the proposed bill suggests a 5% excise tax on money transferred abroad by non-U.S. citizens. That includes those on:

Green cards

U.S. citizens are exempt.

Who Will Be Impacted the Most?

This tax primarily affects the 40+ million foreign nationals working in the U.S.—many of whom regularly send funds to support families overseas.

• NRIs are among the most impacted.

India receives more than $83 billion in annual remittances from abroad, much of it from the U.S.

Example:
Sending ₹1 lakh ($1,200) could now cost an extra ₹5,000 ($60) in taxes if this law is passed.

Feature	Current Rule	Proposed Rule
Tax on remittances	None	5% for non-citizens
Who pays?	No one	Non-citizens only
Collection method	Not applicable	By financial service at the point of transfer
U.S. citizens affected?	No	Exempt

Timeline: When Could This Happen?

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