Wealth Tax in the United States

The United States does not impose a federal wealth tax, net worth tax, or annual tax on total assets. However, certain types of wealth are taxed through property taxes, capital gains taxes, and estate taxes. There have been ongoing policy discussions about introducing a wealth tax for high-net-worth individuals.

No Federal Wealth Tax

There is no federal wealth tax in the United States. Individuals are not required to pay any annual tax based on their net worth or total assets. The following are not subject to wealth tax:

• Cash and bank deposits
• Stocks, bonds, and other securities
• Business interests and private company shares
• Jewelry, art, and collectibles
• Vehicles and personal property
• Cryptocurrency and digital assets

Real Estate and Property Tax

While there is no wealth tax on real estate, property owners pay annual property taxes at the local/county level:

• Annual Property Tax: 0.5-2.5% of assessed market value (average ~1.1%)
• Property Tax: Administered at the county level, not by the federal government

These taxes are based on specific property assets, not total net worth.

Taxation of Investment Assets

Investment assets are not subject to annual wealth tax, but the income and gains they generate are taxed:

• Dividends: Taxed at qualified (0-20%) or ordinary rates
• Interest: Taxed at ordinary income rates
• Capital gains: Taxed when realized (short-term at ordinary rates, long-term at 0/15/20%)
• Rental income: Taxed at ordinary income rates

Estate and Inheritance Tax

The federal estate tax applies to estates exceeding approximately $13.61 million (2026), with rates from 18% to 40%. Some states impose their own estate or inheritance taxes. Portability allows surviving spouses to use unused exemption.

State-Level Wealth Taxes

A few states impose taxes on certain types of wealth:

• Some states tax tangible personal property (vehicles, boats, business equipment)
• No state currently imposes a broad-based annual wealth tax
• Some states have proposed wealth tax legislation but none enacted

Proposed Wealth Tax Legislation

Various proposals have been introduced in Congress to tax extreme wealth, including:

• Annual tax on net worth exceeding $50 million (various proposed rates)
• Mark-to-market taxation on unrealized gains for high-net-worth individuals
• As of 2026, no federal wealth tax has been enacted