Ultra-Millionaire Tax Act of 2026

Lower Tax Rate Based on Health Care Legislation: The applicable tax percentage for assets over $1 billion may be set at 3 percent instead of 6 percent if legislation is passed that provides all US residents with comprehensive health care protection and prohibits duplicate benefits (Section 2901(c)).

Exclusion of Certain Tangible Personal Property: Tangible personal property valued at $50,000 or less is not included in the taxable assets calculation (Section 2902(b)(1)).

Relief for Taxpayers with Financial Hardship: The Secretary may extend the time for paying the wealth tax for up to 5 years if a taxpayer has severe liquidity constraints or if immediate payment would cause undue hardship on an ongoing enterprise (Section 6161(a)).

Tax on High Net Worth Individuals: A tax is imposed on the net value of all taxable assets, including a 2 percent rate for assets between $50,000,000 and $1,000,000,000, plus an applicable percentage for assets over $1,000,000,000 (Section 2901(b)).

Increased Tax Rates for Expatriates: Individuals who are covered expatriates are taxed at a higher rate of 40 percent (Section 2903(c)).

Heavy Penalties for Asset Undervaluation: Taxpayers may face increased penalties if they provide a substantial wealth tax valuation understatement, which occurs if the claimed value is 65 percent or less of the correct amount (Section 6662(b)).

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