A wealth tax, also referred to as a capital tax or equity tax, is a tax on an entity's total assets or net worth, encompassing personal assets like cash, bank deposits, real estate, assets within insurance and pension plans, ownership of unincorporated businesses, financial securities, and personal trusts. It is typically levied annually on an individual's net worth—the total value of assets minus liabilities—above a certain threshold. Proponents argue it can reduce wealth inequality, while critics suggest it can negatively impact economic activity.
As of 2026, only a handful of OECD countries levy a comprehensive net wealth tax on individuals: Colombia, Norway, Spain, and Switzerland. Some countries, such as France, Italy, Belgium, and the Netherlands, tax specific asset categories rather than total net worth. Many countries that previously utilized wealth taxes, such as Austria, Denmark, Finland, Germany, Iceland, Italy, the Netherlands and Sweden, have repealed them, citing administrative difficulties, capital flight, and disappointing revenue. Wealth taxes have historically been used as an "emergency tax" after major economic recessions.
