Belize to face 1% excise tax on remittances from the U.S. starting January 2026

Belize is set to face 1%  excise tax for all money transfers sent out from the U.S. to Belize beginning January 1, 2026, raising concerns for Belizean families who rely heavily on remittances.

The added tax anticipated to take effect on January 1, is reportedly a measure included in Trump’s “One Big Beautiful Bill,” that was passed by the US Congress and signed into law earlier July 2025.

Although the policy draws attention to such countries as Jamaica, the Bill reportedly includes most Caribbean countries including Belize that receive monetary funds from the United States, and broadly applies to all remittances leaving the United States, including those sent to Belize.

The Bill is reportedly anticipated to affect Belize negatively financially as the United States is the primary source of the country’s remittances, accounting for 84.1 per cent of all transfers, an inflow that represents 5.2% of Belize’s gross domestic product (GDP) in 2025.

Furthermore, the Inter-American Development Bank (IDB) reported having received approximately US$173 million in remittances this year, so far, which positively contributed to the country’s economy.

With the added 1% excise tax, transfers are expected to slow down in the year 2026, as remittances play a critical role in Belize’s economy. Providing a vital financial lifeline for thousands of households by helping them cover essential expenses such as food, housing, education, and healthcare.

Various economists have warned that even a small increase in transfer costs, combined with changes in US labor and economic policy, could reduce the amount families receive and place added strain on Belize’s household finances.

Citizens of Belize have taken to Facebook to comment on the soon 1% tax that is to be applied to the country. With one user ‘Tommy Lite’ stating “Belize is a large country with lots of resources and a very small population, Belizeans should be self-sufficient and not be heavily relying on remittance, people should be independent and able to earn their own living.”

While another ‘Mariano Cho’ stated “Belize should reciprocate and tax the same percentage to Belize Dollars being sent to any foreign country. We should learn from the United States as we cannot lose our Belize Dollars. Our currency needs to stay in Belize. Most of the time our currency is going into Guatemala and Mexico.”