Paltrow was named 'World's Best Dressed Woman', while Middleton was recognised for her 'Classic Beauty' and Rihanna was chosen for her risky style.
Earlier this year, Paltrow was crowned the 'Best Dressed' at the 2012 Oscars by fashion magazine Vogue after she attended the event wearing a white Tom Ford dress.
The Duchess of Cambridge has also appeared in other 'Best Dressed' lists including 'Britain's Best Dressed 2011' and Vanity Fair's 'International Best Dressed List'.
People's 'Best Dressed of 2012' is as follows:
- Gwyneth Paltrow - 'The World Best Dressed Woman'
- Kate Middleton - 'The Classic Beauty'
- Emma Stone - 'The Red Carpet Ruler'
- The Kardashian sisters - 'Brunette Bombshells'
- Miranda Kerr - 'The Street Style Pro'
- Reese Witherspoon - 'The Hot Mama'
- Rihanna - 'The Risky Renegade'
- Jessica Alba - 'The Jean Queen'
- Diane Kruger - 'The High-Fashion Pro'
- Jennifer Lawrence - 'Best Rising Star'
Paltrow recently revealed that she may not reprise her role as Pepper Potts - Tony Stark's love interest - in The Avengers 2.
"I just came off of Iron Man 3, which is as special effects-y and action-y as it gets," she said. "So to do something like [Thanks For Sharing], where it's really small, funny and exciting, is really great.
"I don't know [about returning for The Avengers sequel], I'm getting old for this s**t, you know what I mean?"
Watch a clip of The Avengers below: