Mexican Immigrant Remittances Drop as New U.S. Tax Hits in May

Remittances to Mexico Fall as New Tax Legislation Takes Effect

The flow of remittances from Mexican immigrants in the United States to Mexico has seen a downturn, impacting many families who rely on these funds. This decline in financial support signals a shift in the economic landscape for numerous households in Mexico.

Figures show that remittances sent to Mexico decreased by approximately 5% from May of the previous year to May of this year. While this reduction is significant, it is notably less severe than the 12% drop recorded in April compared to the same month in 2024.

The United States continues to be the largest contributor to these remittances, but an impending tax policy is expected to further influence these transfers. A recent legislative measure introduced by Republicans has established a 1% tax on certain cash remittances, which, although a smaller segment of the total funds, could still have a considerable effect.

In reaction to this tax change, the President of Mexico has voiced strong opposition, criticizing the impact of the taxation on families relying on these remittances. The Mexican administration is also committed to supporting Mexican nationals living in the U.S. who may be adversely affected by this new tax measure.