Billionaires who lived in California on Jan 1, 2026 owe a one-time tax of up to 5% of their worldwide net worth. Real estate and most pensions and retirement accounts are excluded. It's due in 2027, or over five years with a surcharge. 90% of the money goes to health care and the rest to education, food assistance and administration.
Proposition 40 · California · Nov 3, 2026
One-time billionaire tax
Official title: Imposes One-Time Tax on Certain Taxpayers. Initiative Constitutional Amendment and Statute.
A one-time tax of up to 5% on Californians worth more than $1 billion, mostly to fund health care.
At a glance
New tax (one-time)- Does it raise taxes?
- A new one-time tax of up to 5% of worldwide net worth, on people with more than $1 billion in assets who lived in California on Jan 1, 2026.
- Estimated cost or revenue
- Tens of billions of dollars over a few years (uncertain). Possible ongoing income-tax loss of under $1 billion a year if some billionaires leave.
- Who pays
- California residents (as of Jan 1, 2026) with assets over $1 billion.
- Where the money goes
- 90% health care; 10% education, food assistance and administration. Can't replace existing funding.
- How long
- One time; due in 2027 or paid over five years with a surcharge.
Worth knowing: Collections are hard to predict because wealth tracks stock prices and taxpayers may move or plan around it. If Prop 41 or 42 gets more yes votes, a court could block Prop 40.
From the official voter guide and the state’s fiscal analysis. Estimates are the state’s, not ours.
Your choice
Saved privately on this device.What your vote does
No wealth tax. California keeps taxing income and certain property, not total net worth.
How the money works
TypeNew tax (one-time)
Rate or thresholdUp to 5% of worldwide net worth; real estate and most retirement accounts excluded.
Cost, who pays and where the money goes are in “At a glance” above.
- Exemptions
- Real estate, most pensions and retirement accounts.
What your guides say
No guides selected yet. Pick guides to compare.
Why they disagree
Federal cuts would cost over a million Californians their health coverage; a one-time tax on billionaires protects health care, schools and food aid.
Official ballot argument for (summary)Would push wealthy people and businesses out, costing billions in revenue; the money is temporary and could lead to broader taxes later.
Official ballot argument against (summary)Who’s funding it
We haven’t loaded campaign-finance filings for Proposition 40 yet. You can look them up directly:
Sources
- California Secretary of State
Proposition 40: Official Voter Information Guide · Official title, summary, vote effects and fiscal impact
Checked Oct 31, 2026 - Easy Voter Guide (League of Women Voters of California Education Fund)
Easy Voter Guide, November 3, 2026 · State propositions
Checked Nov 1, 2026