Wealth Tax Calculator
Calculate wealth tax on your net worth using custom tax brackets.
See your effective tax rate and annual wealth tax liability.
Annual Wealth Tax
A wealth tax is an annual levy on an individual’s net worth — total assets minus total liabilities. Unlike income tax, it applies to accumulated wealth regardless of whether any income was earned that year.
The Formula:
Net Worth = Total Assets − Total Liabilities
Wealth Tax = Sum of (Net Worth in each bracket × bracket rate)
How Bracket Thresholds Work (hypothetical example):
| Net Worth Bracket | Rate |
|---|---|
| $0 – $1,000,000 | 0% (exempt) |
| $1,000,001 – $5,000,000 | 1% |
| $5,000,001 – $50,000,000 | 2% |
| Above $50,000,000 | 3% |
Worked Example:
Individual with $8,000,000 net worth:
- First $1M: $0
- Next $4M ($1M–$5M): $4,000,000 × 1% = $40,000
- Remaining $3M ($5M–$8M): $3,000,000 × 2% = $60,000
- Total annual wealth tax = $100,000
Real-World Context:
- Switzerland, Norway, and Spain currently levy wealth taxes
- France abolished its wealth tax in 2017; several EU nations have done the same
- The US has no federal wealth tax; proposals from Senator Warren (2% above $50M) and others remain unenacted
- Key debate: wealth taxes face valuation challenges for illiquid assets like private businesses and art
Practical Tips:
- Always subtract mortgage, loans, and other liabilities before calculating taxable net worth
- Pension accounts and primary residences are often partially or fully exempt depending on jurisdiction
- Capital gains taxes interact with wealth taxes — understand your jurisdiction’s rules