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119-s-4306119th CongressWALLET

Millionaires Surtax Act

Sponsored By: Senator Van Hollen, Chris [D-MD]

Introduced

Summary

A 10% surtax on very high incomes would create a new surcharge on top of existing income taxes. The bill also defines how to measure that income and sets special rules for overseas filers and certain trusts.

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  • High earners: Taxpayers would pay a 10% surcharge on the portion of their modified adjusted gross income above the threshold. The thresholds are $2 million for joint filers and $1 million for other individual filers.
  • International and income rules: The bill defines modified adjusted gross income and adjusts it for certain investment interest deductions. For nonresident aliens only amounts counted under the U.S. tax rule in section 871(b) count toward the surtax, and citizens or residents abroad get a reduced threshold tied to the foreign earned income exclusion.
  • Trusts, credits, and timing: Trusts whose unexpired interests are devoted to the charitable purposes in section 170(c)(2)(B) are excluded. The surtax is not treated as a tax for computing tax credits or for the alternative minimum tax. The provisions apply to taxable years beginning after December 31, 2026.

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Bill Overview

Analyzed Economic Effects

1 provisions identified: 0 benefits, 1 costs, 0 mixed.

New 10% Surtax on Millionaires

This bill would add a new 10% surtax on very high individual incomes. You would pay 10% of the part of your modified adjusted gross income (MAGI) above the threshold. The threshold would be $2,000,000 if you file a joint return and $1,000,000 if you do not file jointly. MAGI for this surtax would mean AGI reduced by investment interest deductions not already counted in AGI; estates and trusts would use AGI as in section 67(e). Nonresident aliens would only count amounts tied to tax under section 871(b). U.S. citizens and residents abroad would see their threshold reduced by certain foreign-earned income exclusions under section 911. Certain charitable trusts would be exempt. The surtax would not count as a tax for purposes of computing credits under the chapter or for the alternative minimum tax. These changes would apply to taxable years beginning after December 31, 2026.

Sponsors & CoSponsors

Sponsor

Van Hollen, Chris [D-MD]

MD • D

Cosponsors

  • Sen. Merkley, Jeff [D-OR]

    OR • D

    Sponsored 4/15/2026

  • Sen. Luján, Ben Ray [D-NM]

    NM • D

    Sponsored 4/15/2026

  • Sen. Gallego, Ruben [D-AZ]

    AZ • D

    Sponsored 4/15/2026

Roll Call Votes

No roll call votes available for this bill.

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