Ultra-Millionaire Tax Act of 2026

Increased Health Care Protection: The bill allows for a higher applicable tax rate of 6 percent if legislation is in effect that establishes a health insurance program providing all residents with comprehensive protection against health care costs and prohibits private entities from providing duplicate benefits (Section 2901(c)(2)).

Relief for Taxpayers with Liquidity Issues: The Secretary may extend the time for payment of the wealth tax for up to 5 years for taxpayers determined to have severe liquidity constraints or where immediate payment causes undue hardship on an ongoing enterprise (Section 6161(a)(3)).

Tax Burden on High-Net-Worth Individuals: Individuals with net taxable assets exceeding $50,000,000 will be subject to a wealth tax of 2 percent up to $1,000,000,000, and a higher applicable percentage on assets above that threshold (Section 2901(b)).

Increased Penalties for Valuation Errors: Taxpayers may face increased penalties if they provide a substantial wealth tax valuation understatement, with penalties increasing to 30 or 50 percent depending on the nature of the misstatement (Section 6662(b)).

Taxation of Covered Expatriates: Individuals who are covered expatriates will face a tax rate of 40 percent on their taxable assets (Section 2903(c)).

Mandatory Audits: The Secretary is required to annually audit at least 30 percent of taxpayers required to pay the tax (Section 2905).