Tennessee Remittance Tax Adds to Trump's Immigration Crackdown

Financial Services attorney Eamonn Moran was quoted in an American Banker article on Tennessee's new remittance tax. The law, which takes effect January 1, 2027, imposes a $10 fee on transactions under $500 and an additional 2 percent fee on transactions of $500 or more; it covers all international remittances that originate in Tennessee, with an exemption for banks and financial institutions. Supporters of the levy say it will capture about $55 million in revenue from the 16.4 million remittances that leave the state each year, while critics tie it to the Trump Administration's immigration enforcement efforts. Mr. Moran commented the connection between the new state law and federal immigration activity cannot be ignored.

"These cross-border payments, not surprisingly, are often used by migrant workers in the U.S. to share their earnings with family or friends," he said. "Immigration has become a charged political topic with the administration seeking to curb the number of people coming to the U.S. You can't think about this without thinking about the overarching issue."

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