Many diaspora families send money to Africa. According to the IRS, a 1% tax has applied since January 1, 2026 to some of these transfers. It depends on how the money is paid to the transfer company.
What is covered
The 1% tax targets transfers funded with cash, a money order, a cashier’s check or a similar physical instrument.
What is exempt
Transfers funded from a bank account or with a U.S.-issued debit or credit card are not covered.
What we could not confirm
The detailed rules are the subject of a proposed IRS regulation. Fees and timing vary by transfer company: ask your provider how the tax is applied before sending.
This article is informational and is not tax advice.
Sources
This article is our own summary. Official sources : IRS.
