Wealth Tax Calculator
Calculate wealth tax on your net worth using custom tax brackets.
See your effective tax rate and annual wealth tax liability.
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
How we build and check this calculator
This calculator runs entirely in your browser, so the numbers you enter stay on your device. The math behind it is written by hand and tested against worked examples and standard references before the page goes live.
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