Mexico’s remittance math is getting tougher
Mexico’s remittance market is under pressure from a stronger peso and a 1% U.S. tax on certain cash-funded transfers that took effect Jan. 1, 2026. Banxico data analyzed by BBVA Research show remittances totaled $61.791 billion in 2025, down 4.6% from the prior year and ending 11 years of growth.
The peso rose 10.2% against the dollar from November 2024 to November 2025. BBVA Research said that, with inflation, this cut real purchasing power by 14.4% for 4.4 million recipient households in November 2025.
Who feels the squeeze
Families in Mexico that depend on dollar remittances are seeing less value when those funds are converted to pesos. Expats, digital nomads and other residents paid in USD and spending locally face the same math when exchange rates move against them.
The U.S. tax applies only to physical transfers such as cash, checks, money orders and cashier’s checks. It doesn't hit bank-to-bank, card-based or online transfers, which have been taking a bigger share of the market.
What senders can do now
Mexico’s FINABIEN program refunds the tax for cash transfers made through its cards and has lowered fees to $2.99 for transfers of $100 to $2,500. That gives regular senders a cheaper path if they still rely on cash.
April remittances came in at $4.4 billion but still showed an 18.7% drop in real purchasing power, according to the research cited. Read our full Mexico guide for the complete picture and check visa updates for more nomad news.
Frequently asked questions
Which money transfers to Mexico are affected by the new 1% U.S. tax?
How has the peso affected remittances to Mexico?
How much were remittances to Mexico in 2025?
What can senders do to avoid the new cash-transfer tax?
What does FINABIEN charge for transfers of $100 to $2,500?
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