California Ballot Includes Five Tax Measures

California’s 2026 ballot puts five tax-related measures before voters, the largest such lineup since 1994. The proposals could alter state revenue, public spending and the rules for approving taxes. Residents of Simi Valley will consider the same statewide questions as voters elsewhere in California.

Three measures address whether the state should tax wealth. Proposition 40 would impose a one-time 5% levy on about 200 Californians whose net worth reaches at least $1 billion, excluding real estate and retirement accounts. The Legislative Analyst’s Office says it could bring in tens of billions of dollars, with nearly all the money directed to public health insurance programs facing major federal reductions. Proposition 41 would restrict taxes designed to get around the state spending limit and require cost reviews before programs funded by future tax measures. Proposition 42 would prohibit new taxes on financial assets, private companies and most other wealth, while also blocking retroactive application of future taxes.

The remaining measures concern income and local taxation. Proposition 3 would permanently retain higher rates on individually earned income above $360,000 annually; the existing rates expire in 2030 and have produced $5 billion to $16 billion per year, mostly for schools. Proposition 43 would require at least two-thirds approval for certain citizen-initiated local special taxes. If Proposition 40 and either opposing measure pass, the proposal receiving more votes would control. The measures are part of a 14-proposition statewide ballot, alongside roughly 300 local tax and bond questions expected across California.