The Oligarch Act of 2025 creates a new annual wealth tax on the richest Americans and trusts. Starting in 2026, individuals and trusts with net assets above a certain threshold will owe a percentage of their wealth each year—similar to how you might pay property tax, but on all your assets instead of just real estate.

Here's how it works: The threshold starts at $50 million (1,000 times $50,000), but adjusts annually based on median household wealth. Once you cross that threshold, you pay 2% on wealth between $50 million and $500 million, 4% on wealth between $500 million and $5 billion, 6% on wealth between $5 billion and $50 billion, and 8% on anything above $50 billion. Trusts pay a flat 8% on assets above the threshold. Married couples are treated as a single taxpayer. The tax applies to all property—stocks, real estate, art, business interests—minus any debts owed. However, personal items worth under $50,000 (like your car or furniture) don't count, and certain retirement accounts are exempt.

The IRS will have significant new responsibilities, including creating rules to value hard-to-price assets like private businesses and art, establishing reporting requirements, and auditing at least 30% of wealth tax filers annually. People facing severe hardship can request to spread payments over up to 5 years. Those who undervalue their assets face steep penalties—30% to 50% depending on how far off their valuation is.