Model wealth tax scenarios with net worth brackets, exemption thresholds, and annual tax impact on wealth accumulation over time.
This calculator projects the annual cost of a wealth tax you define yourself: a net worth figure, an exemption threshold, and one or more marginal brackets above it. It applies the exemption first, then taxes each bracket's slice at its own rate, and rolls the result forward across the years and growth rate you set. What trips people up is assuming the pre-filled numbers reflect real law in their country - they don't. Almost no jurisdiction currently levies an annual wealth tax, so every threshold and rate here is a scenario you supply, not a legal default.
A concrete input and expected output from the current implementation.
Input
Net worth: $10,000,000. Exemption threshold: $1,000,000. Bracket 1: 1% on the portion from $1,000,000 to $5,000,000. Bracket 2: 2% on the portion above $5,000,000.
Expected output
Annual wealth tax: $140,000 (effective rate 1.4% of total net worth).
The first $1,000,000 is exempt. The next $4,000,000 (up to $5,000,000) is taxed at 1% = $40,000. The remaining $5,000,000 is taxed at 2% = $100,000. $40,000 + $100,000 = $140,000.
Net worth below the exemption threshold pays nothing. Everything above it is split across the brackets you define, and each bracket's rate applies only to the slice of net worth that falls within it - the same layered logic as an income tax bracket table, not a flat rate applied to the whole balance once a threshold is crossed.
Given a growth rate and a number of years, the tool recalculates the tax each year against that year's net worth and carries the after-tax balance forward, so you can see the gap between an account that grows untaxed and one that pays this bracket schedule annually, compounding the difference over the projection period.
Only if you enter that country's actual thresholds and rates yourself - the calculator doesn't ship with any jurisdiction's current law built in. Also note that very few countries levy an annual wealth tax at all today (Norway, Spain, and Switzerland are among the exceptions), so for most users this is a hypothetical exercise, not a real bill estimate.
Enter net worth after subtracting liabilities - the calculator taxes whatever figure you put in without distinguishing assets from debts or knowing which category they fall into. If your intended tax base is gross assets, you'll need to model that separately.
The example and behavioral notes were checked against the browser implementation. Standards and primary references below define the relevant format, formula, or platform behavior.
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