Senate bill targets millionaires with a 10% surtax

What does this do?

This bill would add a 10% surtax on the portion of income above $1,000,000 for most filers, or above $2,000,000 for married couples filing jointly and surviving spouses. Only the dollars above the threshold are taxed at the extra rate, not total income. The change would start with the 2027 tax year.

Who does it affect?

The surtax would apply to high-income individuals, estates, and trusts. Americans living abroad, nonresident aliens, and certain charitable trusts would face special rules that may lower or remove what they owe under this tax.

Why does it matter?

High earners above the thresholds would see a higher overall federal tax bill starting in 2027. Those in the exempted groups may owe less or nothing under this specific surtax.

What does it cost, and who pays?

• 10% surcharge on income above threshold
• Example: $1.2M earner pays extra on $200K