California is about to run the most ambitious tax experiment in modern American history. A one-time 5% wealth tax targeting residents with a net worth above $1 billion has qualified for the November 2026 ballot after organizers submitted roughly 1.55 to 1.6 million signatures, making it the first wealth tax ballot measure of its kind in the US.
The initiative, called the 2026 Billionaire Tax Act, is projected to raise approximately $100 billion over five years. That’s roughly $20 billion annually, earmarked for healthcare, K-14 education, and food assistance programs facing projected federal funding cuts.
What the tax actually does
This isn’t a traditional income tax. It’s a tax on accumulated wealth, which means it captures something most state taxes don’t: unrealized gains.
If a billionaire’s stock portfolio or crypto holdings have ballooned in value but they haven’t sold anything, they’d still owe 5% on their net worth above the $1 billion threshold. The tax phases out at $1.1 billion and would be payable in installments over five years.
