Remittances to Central America are still climbing in 2026, led by Guatemala, Honduras and El Salvador, even as a new U.S. tax on some money transfers raises concerns for countries that depend heavily on dollars sent home by migrants.
The three Northern Triangle countries received $15.852 billion in remittances between January and April, up 10.7% from the same period last year. The increase added more than $1.53 billion compared with the first four months of 2025.
Guatemala took in the largest share, with $8.431 billion, or 53.2% of the total. Honduras received $4.134 billion, while El Salvador received $3.286 billion. Honduras posted the fastest growth among the three, at 14.3%, followed by Guatemala at 10.5% and El Salvador at 6.8%.
The numbers confirm the region’s deep dependence on migrant earnings, mostly from workers in the United States. Remittances pay for food, rent, school costs, health care and daily household expenses across much of Central America. They also support consumption in economies where job creation remains weak and migration continues to act as an economic release valve.
The growth comes despite a new U.S. remittance transfer tax that took effect Jan. 1. The tax is 1% and applies when money is sent from the United States to recipients abroad using cash, money orders, cashier’s checks or similar physical instruments. The sender is liable for the tax, while transfer providers must collect it and report it.
That distinction matters. The tax does not appear to cover every remittance sent digitally or through bank-funded channels. Some early regional reports have described it broadly as a tax on money transfers abroad, but the rule is narrower and focused on certain payment methods.
So far, there is little evidence that the tax has stopped the flow of money. Remittances to Latin America and the Caribbean reached a record $173.7 billion in 2025 and are still growing in 2026, though at a slower pace. For the first quarter of 2026, Central America grew 9.1%, faster than any other subregion in Latin America and the Caribbean.
Country-level data show the same pattern. El Salvador received $4.209 billion in remittances from January through May, with May alone reaching $923 million. The May figure was the country’s highest monthly total so far this year.
Guatemala has also continued to post strong inflows. By March, remittances had reached $6.290 billion, up 11.5% from a year earlier, helped by continued employment among Guatemalan migrants in the United States.
Honduras is seeing one of the region’s strongest increases. By April 20, the country had received $3.688 billion in remittances, up 15.9% from a year earlier. Officials there have also noted that some migrants appeared to send money earlier than usual before the U.S. measure took effect.
Costa Rica is not in the same category as the Northern Triangle. Remittances are much smaller as a share of the economy, and our country is both a sender and receiver. Most outgoing personal remittances from Costa Rica go to Nicaragua, while most incoming personal remittances come from the United States.
For Central America, the larger issue is not just whether the U.S. tax trims one percent from some transfers. It is whether migrant workers in the United States can keep earning enough to send money home at the pace seen over the past several years. The rest of 2026 will depend heavily on migrant employment, wages, exchange rates and U.S. immigration policy.
That leaves the region in a familiar position. Remittances are growing, but the dependence behind that growth remains a warning sign. A record inflow can stabilize households and support local spending, but it also reflects the lack of enough well-paid work at home.
