November 3, 2026 general election
California Proposition 40; what a yes or no vote means.
Creates a one-time 5% tax on certain taxpayers with assets over $1 billion; most revenue would support health care.
Bottom line
What Proposition 40 does
Creates a one-time 5% tax on certain taxpayers with assets over $1 billion; most revenue would support health care.
The measure is a initiative constitutional amendment and statute placed on the ballot by petition signatures. Its official title is “Imposes One-Time Tax on Certain Taxpayers.”
A yes vote
Yes means
California would collect the proposed one-time tax from covered billionaires.
A no vote
No means
California would not collect the proposed one-time tax.
State estimate
What it could cost
Estimated temporary revenue totals tens of billions of dollars over several years; ongoing income-tax revenue could fall by less than $1 billion per year.
That is the fiscal effect summarized from the state voter guide. Estimates describe likely government effects; they are not a promise of an exact future result.
Primary record
Read the complete state analysis
This explainer is a starting point. The Secretary of State’s guide carries the impartial analysis, fiscal estimate, arguments for and against the measure, rebuttals and proposed law. Read that record before making a decision.
Open the official Proposition 40 guide