U.S. Remittance Tax Set to Pinch Belizean Wallets

A new U.S. law is about to hit home for Belizeans who depend on money sent from relatives abroad. Beginning Friday, January 1, a one-per-cent tax will be applied to certain remittances leaving the United States, including transfers to Belize.

The measure is part of President Trump’s so‑called “One Big Beautiful Bill.” While the tax is charged in the U.S., its effects will be felt directly in Belize, where remittances are a lifeline for thousands of households.

Families who rely on cash transfers through services like Western Union or money orders could see less in their pockets.  These remittances often cover essentials such as food, rent, school fees, and medical care.

The broader concern is the ripple effect across Belize’s economy. According to the Inter‑American Development Bank, Belizeans received about 173 million U.S. dollars in remittances up to November this year. Of that, 84% came from the United States, with transfers peaking during the Christmas season.

That means a one-per-cent cut, though it may sound minor, could ripple through family budgets and the wider economy. Less money in households can mean less spending in communities, affecting businesses and services across the country.