Wall Street Tax Act of 2025

This bill adds a small tax to most trades of stocks, bonds, and financial contracts called “derivatives.” The tax is a tiny slice of each trade’s value and phases in over time: 0.02% in 2026, rising step by step to 0.1% by 2030. It applies to trades on U.S. exchanges or when a buyer or seller is a U.S. person. New issues, like when a company first sells its stock or a new bond is first offered, are not taxed. Usually, the stock exchange or the broker collects and pays the tax; in some direct trades, the buyer, seller, or payor/payee must pay it.

The bill defines “derivatives” broadly, including options, futures, swaps, and similar contracts tied to things like stocks, debt, currencies, commodities, or indexes, with some exceptions. It excludes certain real estate contracts that require actual property delivery, some securities lending returns, employee stock options given for work, insurance and annuity contracts, certain contracts within the same corporate group, and some commodity contracts used in normal business if they require physical delivery . It also treats American Depository Receipts like the underlying foreign stock, and it treats certain foreign corporations like U.S. persons for this tax; in those cases, U.S. shareholders may have to pay their share directly. The Treasury will work with the SEC and CFTC and can issue rules to prevent tax avoidance .

Key points

• Who is affected: People and firms trading on U.S. markets, U.S. persons trading anywhere, brokers and exchanges that collect the tax, and U.S. shareholders of some foreign corporations .
• What changes: A small tax on most trades, based on the trade’s value (or payment amount for derivatives), with clear exclusions for new issues and certain contracts .
• When: Starts in 2026 and increases each year until it reaches 0.1% in 2030 and after.