diff --git a/terra/Cargo.lock b/terra/Cargo.lock
index 6a183b60..0e7d6f6d 100644
--- a/terra/Cargo.lock
+++ b/terra/Cargo.lock
@@ -1,5 +1,7 @@
 # This file is automatically @generated by Cargo.
 # It is not intended for manual editing.
+version = 3
+
 [[package]]
 name = "addr2line"
 version = "0.15.1"
@@ -1047,6 +1049,31 @@ version = "0.10.0"
 source = "registry+https://github.com/rust-lang/crates.io-index"
 checksum = "ab0e7238dcc7b40a7be719a25365910f6807bd864f4cce6b2e6b873658e2b19d"
 
+[[package]]
+name = "terra-cosmwasm"
+version = "1.2.4"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "4d7275aacd385e4f41647634c35692b1982085917b4dcfc1fdfa3984ee4ce45d"
+dependencies = [
+ "cosmwasm-std",
+ "schemars",
+ "serde",
+]
+
+[[package]]
+name = "terraswap"
+version = "1.2.0"
+source = "registry+https://github.com/rust-lang/crates.io-index"
+checksum = "02334ec5ad280fcc09c86467d40383ea1e4d977103345e53a4f03006c4be51c2"
+dependencies = [
+ "cosmwasm-std",
+ "cosmwasm-storage",
+ "cw20",
+ "schemars",
+ "serde",
+ "terra-cosmwasm",
+]
+
 [[package]]
 name = "thiserror"
 version = "1.0.25"
@@ -1086,6 +1113,7 @@ dependencies = [
  "serde",
  "serde_json",
  "sha3",
+ "terraswap",
  "thiserror",
  "wormhole",
 ]
diff --git a/terra/contracts/token-bridge/Cargo.toml b/terra/contracts/token-bridge/Cargo.toml
index b00d6af1..a0df81ec 100644
--- a/terra/contracts/token-bridge/Cargo.toml
+++ b/terra/contracts/token-bridge/Cargo.toml
@@ -21,6 +21,7 @@ serde = { version = "1.0.103", default-features = false, features = ["derive"] }
 cw20 = "0.2.2"
 cw20-base = { version = "0.2.2", features = ["library"] }
 cw20-wrapped = { path = "../cw20-wrapped", features = ["library"] }
+terraswap = "1.1.0"
 wormhole = { path = "../wormhole", features = ["library"] }
 
 thiserror = { version = "1.0.20" }
diff --git a/terra/contracts/token-bridge/src/contract.rs b/terra/contracts/token-bridge/src/contract.rs
index c68c2d15..6f0a9b63 100644
--- a/terra/contracts/token-bridge/src/contract.rs
+++ b/terra/contracts/token-bridge/src/contract.rs
@@ -1,7 +1,8 @@
 use crate::msg::WrappedRegistryResponse;
 use cosmwasm_std::{
-    log, to_binary, Api, Binary, CanonicalAddr, CosmosMsg, Env, Extern, HandleResponse, HumanAddr,
-    InitResponse, Querier, QueryRequest, StdError, StdResult, Storage, Uint128, WasmMsg, WasmQuery,
+    log, to_binary, Api, Binary, CanonicalAddr, Coin, CosmosMsg, Env, Extern, HandleResponse,
+    HumanAddr, InitResponse, Querier, QueryRequest, StdError, StdResult, Storage, Uint128, WasmMsg,
+    WasmQuery,
 };
 
 use crate::msg::{HandleMsg, InitMsg, QueryMsg};
@@ -28,6 +29,7 @@ use cw20_wrapped::msg::HandleMsg as WrappedMsg;
 use cw20_wrapped::msg::InitMsg as WrappedInit;
 use cw20_wrapped::msg::QueryMsg as WrappedQuery;
 use cw20_wrapped::msg::{InitHook, WrappedAssetInfoResponse};
+use terraswap::asset::{Asset, AssetInfo};
 
 use sha3::{Digest, Keccak256};
 use std::cmp::{max, min};
@@ -54,6 +56,23 @@ pub fn init<S: Storage, A: Api, Q: Querier>(
     Ok(InitResponse::default())
 }
 
+pub fn coins_after_tax<S: Storage, A: Api, Q: Querier>(
+    deps: &mut Extern<S, A, Q>,
+    coins: Vec<Coin>,
+) -> StdResult<Vec<Coin>> {
+    let mut res = vec![];
+    for coin in coins {
+        let asset = Asset {
+            amount: coin.amount.clone(),
+            info: AssetInfo::NativeToken {
+                denom: coin.denom.clone(),
+            },
+        };
+        res.push(asset.deduct_tax(&deps)?);
+    }
+    Ok(res)
+}
+
 pub fn parse_vaa<S: Storage, A: Api, Q: Querier>(
     deps: &mut Extern<S, A, Q>,
     block_time: u64,
@@ -233,7 +252,7 @@ fn handle_create_asset_meta<S: Storage, A: Api, Q: Querier>(
                 nonce,
             })?,
             // forward coins sent to this message
-            send: env.message.sent_funds.clone(),
+            send: coins_after_tax(deps, env.message.sent_funds.clone())?,
         })],
         log: vec![
             log("meta.token_chain", CHAIN_ID),
@@ -592,7 +611,7 @@ fn handle_initiate_transfer<S: Storage, A: Api, Q: Querier>(
             nonce,
         })?,
         // forward coins sent to this message
-        send: env.message.sent_funds.clone(),
+        send: coins_after_tax(deps, env.message.sent_funds.clone())?,
     }));
 
     Ok(HandleResponse {