Proposition 40
Imposes One-Time Tax on Certain Taxpayers
On the ballot
California · November 2026 general election · Constitutional amendment · Election day November 3, 2026
Topics: Health care, Taxes and revenue
In plain language
Proposition 40 would impose a one-time state tax of up to 5 percent on the covered assets of taxpayers holding more than $1 billion. Covered assets would include businesses, securities, art, collectibles, and intellectual property, but would exclude real property and some pensions and retirement accounts. The tax would apply to people who were California residents on January 1, 2026 and would be due in 2027, with an option to pay over five years. Ninety percent of the revenue would go to health care and 10 percent to food assistance or education programs, and the money could not replace existing funding for those purposes.
Fiscal impact
Legislative Analyst's Office summary of the estimate of net state and local government fiscal impact: "Temporary state revenue increase from a new wealth tax on billionaires. These wealth tax revenues probably would add up to tens of billions of dollars spread over several years. Possible ongoing decrease of less than $1 billion per year in state income tax revenue collected from billionaires."
Summarized from the official fiscal analysis listed in the sources below. Figures are the state's, not this site's.
What supporters and opponents say
These are summaries of arguments made by the named organizations, drawn from the sources listed below. They are their claims, not this site's, and this site takes no position on the measure.
What supporters say
- The ballot argument signed by Suzanne Jimenez (SEIU-United Healthcare Workers West), Victoria Barron (Planned Parenthood of the Pacific Southwest), and Denise Robb (Los Angeles College Faculty Guild) says the one-time tax would fall only on Californians worth more than $1 billion, a group the argument says together holds $2 trillion in wealth.
- Supporters state in the official argument that the revenue would keep hospitals open and health care affordable for working families, and that without it working people would pay more for health care.
- The argument quotes U.S. Senator Bernie Sanders supporting a "yes" vote on Proposition 40.
What opponents say
- The ballot argument signed by René Bravo (California Medical Association), Francisco Silva (California Primary Care Association), and Debra Schade (California School Boards Association) says the measure would let the Legislature amend it without voter approval, which they argue opens the door to extending the tax to ordinary savings, home equity, and retirement funds.
- Opponents state in the official argument that the measure would be the first in California history to tax retirement accounts, and call that a precedent likely to be expanded.
- The argument names the California Chamber of Commerce, California Taxpayers Association, California Hispanic Chambers of Commerce, and California Council for Affordable Housing among opponents, and says state spending is up 79 percent since 2019 without better results.
Reproduced verbatim from the state's certified ballot text.
Imposes One-Time Tax on Certain Taxpayers. Initiative Constitutional Amendment and Statute. Official title and summary prepared by the Attorney General: • Imposes one-time tax of up to 5% on certain taxpayers with covered assets valued over $1 billion; covered assets include businesses, securities, art, collectibles, and intellectual property, but exclude real property and some pensions and retirement accounts. • Allocates 90% of these tax revenues for health care, 10% for food assistance or education-related programs; prohibits using revenues to replace existing funding for these purposes. • Exempts such tax revenues from constitutional requirements for school funding, budget reserves, and state spending limit.
Sources
Everything on this page traces to these sources. Follow them to read the original documents.
Last updated . How this page is sourced and corrected is described in the correction policy.