Paltrow took the top honors as People's Best Dressed Woman of 2012 for her "spot-on sartorial instincts," said the mag.
"Her red carpet skills are unparalleled, always arriving in unexpected, yet chic looks," noting that it doesn't hurt that she has the body of a fashion model.
Paltrow's stylist revealed the secret of the actress's chic style. "She doesn't do fringe," said Elizabeth Saltzman. "She has a uniform. It's simple, not overdone."
Kate Middleton -- previously named International Best Dressed by Vanity Fair -- merely received mention as "The Classic Beauty."
"Whether in an ivory long-sleeve Roland Mouret gown (with glittery Jimmy Choos peeking out) or a red pleated Alexander McQueen design, the Duchess continues to pick glamorous and chic pieces that still befit a future queen," People wrote.
Emma Stone was honored as having the best red carpet style, Rihanna with the best fashion risks, Jessica Alba for best jeans, Jennifer Lawrence for best style under 25 years old, as well as both Reese Witherspoon and Miranda Kerr for best pregnancy style.
Never one to leave out the boys, People also honored actors Andrew Garfield, Brad Pitt, Colin Firth, Robert Pattinson, Chris and Liam Hemsworth and hip hop king Jay-Z.
People's Best and Worst Dressed list hits newsstands Friday. Find a sneak preview on People.com.
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