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Mexico Remittances Slide in 2025 as New 1% U.S. Transfer Tax Takes Effect

The newly applied 1% U.S.-remittance levy coincides with peso strength, squeezing what recipient households can buy.

Overview

  • Banco de México reports remittance inflows of $56.469 billion for January–November 2025, a 5.1% year-over-year decline.
  • November 2025 receipts fell 5.7% from a year earlier to $5.125 billion, extending a year of uneven monthly flows.
  • Analysts from Goldman Sachs and Banco Base estimate a 14.4% annual drop in the real purchasing power of remittances in November due to peso appreciation and domestic inflation.
  • Mexico began applying a 1% tax on remittances sent from the United States in 2026, with BBVA estimating roughly $3 billion in collections through 2034 and noting that 99.1% of 2025 inflows arrived via electronic transfers.
  • BBVA says the levy may have prompted some undocumented senders to advance transfers into November–December 2025, while 2026 projections diverge between a 2.6% rebound forecast by Banco Base and a decline to about $60 billion expected by BBVA.