Background and Relevance of the Migrant Population
The US House of Representatives, controlled by Republicans, passed a 3.5% tax on remittances sent from the United States on the morning of May 22. This tax is part of a broader bill called “One Big Beautiful Bill,” which aligns with President Donald Trump’s political agenda. If approved by the Senate in September, it will take effect in 2026.
Originating and Receiving States
- In 2024, 47 out of every 100 dollars received in Mexico originated from California and Texas, totaling $29,415 million (45.4% of the total). These states together contributed significantly to remittances sent to Mexico.
- Although the majority of remittances to Mexico come from the United States, Canada also plays a significant role, contributing 1.7%, equivalent to $1,095 million in 2024.
Mexican Remittances to Other Countries
- The total amount of remittances sent from Mexico abroad has grown steadily since 2013, reaching $1,308 million in 2024. The United States and Colombia account for 64.2% of Mexico’s outbound remittances.
- Emerging destinations for Mexican remittances include Haiti, Venezuela, and Argentina, which have shown recent growth, representing 5.1% collectively.
Record-Breaking Remittances
- In 2024, there were 13.7 million remittance transactions with an average remittance of $393. 99.1% of the remittances to Mexico arrived via electronic transfers, while only 0.7% came in cash and kind.
- The United States sent $62,529 million in remittances to Mexico in 2024, accounting for 96.6% of the total received by the country. 47% of US remittances to Mexico were sent from California and Texas.
- Remittances have experienced high volatility for 14 consecutive months, with mixed performance in 2025. The potential effects of anti-immigrant policies by the current Trump administration in the US remain uncertain.
- In December 2024, Mexico received $5,228 million in remittances, marking a 4.9% annual decline. This is the largest annual drop since May 2013, over 11 years ago.
Key Questions and Answers
-
Q: What is the proposed tax on remittances?
A: The US House of Representatives passed a 3.5% tax on remittances sent from the United States, part of “One Big Beautiful Bill.” If approved by the Senate, it will take effect in 2026.
Q: Which states in the US contribute most to remittances sent to Mexico?
A: California and Texas accounted for 47 out of every 100 dollars received in Mexico in 2024, totaling $29,415 million (45.4% of the total).
Q: How much did remittances to Mexico grow in 2024?
A: The total amount of remittances sent from Mexico abroad reached $1,308 million in 2024, with the United States and Colombia receiving 64.2% of these outbound remittances.
Q: How have remittances performed in 2024?
A: Remittances experienced high volatility for 14 consecutive months in 2024, with a significant 4.9% annual decline in December, the largest drop since May 2013.
