US remittance costs, split apart
Send money home for less. Start with the tax.
On a $500 cash-funded transfer from the US, the federal tax alone is $5 since January 1, 2026. Fund the same transfer from a bank account and the tax line drops to $0.
EnvíaClaro compares online services, bank wires and cash pickup networks in one table: fee, exchange-rate markup and tax as separate lines, because the headline fee is rarely the whole cost.
| Channel | Fee | Exchange-rate markup | Tax | Total cost | Recipient gets | Arrival |
|---|---|---|---|---|---|---|
What the cost is made of
Parameters used in every estimate
Base rates are approximate public mid-market references dated October 26, 2026: 1 USD = 18.60 MXN and 1 USD = 63.50 PHP. They are not live rates.
| Parameter | Value used | Source | Checked |
|---|---|---|---|
| Online service, Mexico: fee | $1.99 + 0.8% of amount | Remitly public US to Mexico pricing (base fee $1.99) | 2026-10-26 |
| Online service, Philippines: fee | 0.6% of amount, no flat fee | Wise public pricing (mid-market rate, variable fee) | 2026-10-26 |
| Online service: exchange markup | 0.6% Mexico, 0.8% Philippines | Sample estimate, public quote comparisons | 2026-10-26 |
| Bank wire: fee and markup | $35 flat, 3.2% Mexico / 3.5% Philippines | Sample estimate, typical published US bank wire range $25 to $50 | 2026-10-26 |
| Cash pickup: fee and markup | $4.99 flat, 1.8% Mexico / 2.0% Philippines | Sample estimate, public cash network pricing | 2026-10-26 |
| Federal tax on cash-funded remittances | 1% of the amount sent | IRS, Internal Revenue Code section 4475, effective 2026-01-01 | 2026-10-26 |
Rows marked as a sample estimate are exactly that. We did not find a single public price list that covers every bank or cash location, so we show the assumption instead of hiding it.
Two corridors, priced the same way
US to Mexico (MXN)
A $500 bank-funded online transfer costs an estimated $9.00 in fee and markup in our model. A bank wire on the same amount costs $51.00. The worked table is on the corridor page.
US to Philippines (PHP)
Bank wires carry the widest markup we model here, 3.5%. On $1,000 that markup alone is $35, before the $35 wire fee.
The 1% tax, explained
Who collects it, which payments trigger it, and the receipt line to look for before you confirm.
Where the markup hides
A $0 fee can still cost $18 on $500.
How to use this site in two minutes
Set the amount
Drag the slider or type the amount in the panel. Every figure on this page moves with it.
Switch the funding
Change cash to bank account and watch the tax column go from 1% of the amount to $0.00.
Check the rate last
Divide what your family receives by what you send. That is the rate you actually got.
FAQ
Is EnvíaClaro a money transfer service?
No. We compare estimated costs only. You send through the provider you pick, on their site or at their counter.
Are these live prices?
No. Fees, markups and times are parameter estimates with sources and a check date in the table above. Providers change prices without telling us.
Does the 1% tax apply to every transfer?
No. It applies when you fund the transfer with cash or a similar physical instrument. Bank account, debit card and credit card funding are exempt.
Why does the bank wire look so expensive?
Two charges stack: a flat wire fee around $25 to $50 at US banks, plus an exchange markup that is usually wider than app-based services charge.