California Billionaire Tax Act 2026: The Billionaire Tax Act would impose 5% wealth tax on residents worth over $1 billion. Tech titans fund $35M opposition as legal challenges mount over retroactivity.
California Billionaire Tax Act 2026 (Image: File)
California Billionaire Tax Act 2026: The California Billionaire Tax Act calls for a one-time 5% excise tax on roughly 200 Californians with net worths exceeding $1 billion. Supported by the SEIU-UHW healthcare union, the measure is designed to raise $100 billion over five years to cushion the impact of federal funding cuts to healthcare and welfare
The Service Employees International Union–United Healthcare Workers West (SEIU-UHW) is backing Initiative #25-0024, also called the 2026 Billionaire Tax Act. The proposal plans to charge a one-time 5% tax on California residents who own more than $1 billion in total global wealth. While California has 255 billionaires, officials believe only about 200 people would actually pay the tax because certain assets like personal real estate, pensions, and retirement accounts are excluded. The tax would apply to wealth such as stocks, business ownership, art, intellectual property, and some trust assets. Supporters say it could raise around $20 billion each year, with most of the money funding public healthcare.
The tax hits roughly 200 individuals whose net worth tops $1 billion, excluding directly held real estate, pensions, and retirement accounts. It covers unrealized wealth like stocks, private business interests, intellectual property, and art. A gradual ramp-up applies between $1 billion and $1.1 billion to ease the burden, with a flat 5% rate above that. Taxpayers who were California residents on January 1, 2026, face liability even if they leave before the November vote.
Proponents expect $20 billion annually, totaling $100 billion over five years. The plan dedicates 90% to public health care services, such as Medi-Cal, and splits the rest between education and food assistance. This targets shortfalls from federal Medicaid cuts. Payments can stretch over five years through 2031, possibly with added fees.
As of now, organizers chase 875,000 valid signatures by June 25 to land on the November 2026 ballot. A December 2025 poll showed 55% support among likely voters, against 39% opposition. The initiative, labeled #25-0024, needs a majority vote to pass.
Tech leaders like Sergey Brin and Eric Schmidt poured $35 million into "Building a Better California," a PAC pushing rival measures to block retroactive taxes and shield retirement savings. Governor Gavin Newsom warns of a "wealth exodus." Senator Bernie Sanders backs it, but legal experts flag challenges over retroactivity and state tax caps. The Tax Foundation notes potential outsized bills for tech founders with supervoting shares.
California holds the most U.S. billionaires—255, per Altrata data or over a fifth of the national total.
A: It uses a January 1, 2026, tax obligation date, making residents liable from that point regardless of later moves.
A: Worldwide net worth exceeds $1 billion, which includes stocks and commercial holdings but excludes real estate, pensions, and retirement savings.
A: Yes, over five years ending in 2031, likely with extra fees.
A: A December 2025 poll found 55% of probable voters in favor and 39% opposing.
A: Bernie Sanders and the California DSA have endorsed the SEIU-UHW healthcare union.
Disclaimer: This post is intended for informative purposes only and does not provide legal, tax, or financial advice.
