California Ballot Proposal Targets Billionaire Net Worth With 5% Tax
California voters are evaluating a proposed one-time 5 percent state wealth tax targeting individuals with net worth exceeding $1 billion.
If passed, the measure imposes a direct 5 percent levy on the net worth of individuals residing in California as of January 1, 2026. The scope covers total personal and business net worth worldwide, including stocks, corporate entities, and investments, minus debts, while granting credits for similar wealth taxes paid to other jurisdictions. Specific exclusions apply to real estate, pensions, and retirement accounts.
The primary financial liability falls on California residents who meet the $1 billion net worth threshold on the January 1, 2026 valuation date. California currently holds 213 listed billionaires holding a combined total of $2.182 trillion in net worth. State revenue projections estimate the measure would generate $100 billion between 2027 and 2031 to support state healthcare funding and public services.
Payment under the proposed measure becomes due in 2027. Taxpayers are permitted to elect a five-year installment structure extending from 2027 through 2031, though opting into the deferred payment plan requires paying an additional cost above the base tax amount.
| Tax Parameter | Detail |
|---|---|
| Base Rate | 5% one-time levy |
| Net Worth Threshold | $1 billion |
| Residency Date | January 1, 2026 |
| Payment Deadline | 2027 (5-year installment plan available with additional cost) |
| Excluded Holdings | Real estate, pensions, and retirement accounts |
| Projected Revenue | $100 billion (2027, 2031) |
