How Much Would a Wealth Tax Cost You?

A wealth tax is an annual levy on a person's total net assets — property, financial investments, business interests, and other holdings — above a certain threshold. Unlike income taxes (which tax what you earn) or capital gains taxes (which tax what you sell), a wealth tax charges you every year simply for holding accumulated assets.

Income tax applies to wages and ordinary income. Capital gains tax applies when you sell an appreciated asset. A wealth tax applies to the stock of wealth itself — even if you earned nothing and sold nothing that year. If your net worth grew by $0 but you hold $50M in assets in a jurisdiction with a 1.5% wealth tax, you owe $750,000.

Sweden, Finland, Austria, Germany, and other European countries repealed their wealth taxes largely due to capital flight — wealthy individuals and businesses relocating to lower-tax jurisdictions. The administrative cost of valuing non-liquid assets (private businesses, art, real estate) annually also proved significant. France's experience with its ISF wealth tax (repealed in 2018) is the most studied example of a country choosing to retreat from wealth taxation.

When a jurisdiction announces or enacts a wealth tax, wealthy individuals often relocate before it takes effect — or even while it is only proposed. California has documented an outflow of billionaires and centimillionaires to Texas, Florida, and Nevada. Norway saw 30+ billionaires relocate to Switzerland after its 2022 rate increase. Sweden's tax authority estimated that the wealth tax was raising less revenue than the economic cost of the capital and talent departing.

No. The US has no federal wealth tax. Constitutional scholars debate whether a direct annual tax on net worth would require apportionment among states under Article I of the Constitution — a significant legal hurdle. Federal proposals by Senators Warren and Sanders have not passed. Some states are advancing their own versions; none have fully enacted a traditional net-worth wealth tax as of 2026.

Enter your net worth in USD. The calculator applies each jurisdiction's brackets to your net worth to compute the theoretical annual tax you would owe. Rates shown are simplified for illustration — actual tax liability depends on asset composition, residency status, applicable exemptions, and treaty arrangements. Always consult a qualified tax advisor for your specific situation.