Wall Street Tax Act of 2025

This bill would add a small tax to most trades of stocks, bonds, and derivatives. It starts at 0.02% in 2026 and slowly rises to 0.1% in 2030. The tax applies to trades on U.S. exchanges or trades by U.S. persons, including many types of derivative contracts like options, futures, and swaps. It would not apply to the first-time sale of a new stock or bond (like an IPO). In most cases, the exchange or the broker would collect and pay the tax. For regular stock or bond trades, the tax is based on the trade’s market value; for derivatives, it’s based on the payment amount tied to the contract.

The goal is to place a very small cost on frequent trading. While the tax is tiny per trade, it could add up for high-volume trading. Everyday investors may see slightly higher costs when buying or selling, depending on how brokers pass along the tax.

Key points

• Who is affected: Trades on U.S. exchanges or by U.S. persons; includes stocks, bonds, and many derivatives. Initial offerings are excluded.
• Who pays it: Usually the exchange or the U.S. broker collects it when the trade happens.

Rates and timing

• 0.02% on trades in 2026
• 0.04% in 2027
• 0.06% in 2028
• 0.08% in 2029
• 0.10% in 2030 and after

What’s taxed

• Stocks and bonds: the trade’s market value
• Derivatives (like options, futures, swaps): the payment amount tied to the contract’s value