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
What is the California Billionaire Tax Act 2026?
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.Â
Who Does the California Billionaire Tax Act Target?
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.
What Does the Billionaire Tax Revenue Fund?
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.
California Billionaire Tax Act: How Is the Signature Drive Going?
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.
California Billionaire Tax Act: Why Are Billionaires & Newsom Fighting It?
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.
California Billionaire Tax Act: Important FAQs
Q: When would the tax take effect if approved?
A: It uses a January 1, 2026, tax obligation date, making residents liable from that point regardless of later moves.
Q: What assets get taxed under the proposal?
A: Worldwide net worth exceeds $1 billion, which includes stocks and commercial holdings but excludes real estate, pensions, and retirement savings.
Q: Can billionaires pay in installments?
A: Yes, over five years ending in 2031, likely with extra fees.
Q: What’s the latest polling on support?
A: A December 2025 poll found 55% of probable voters in favor and 39% opposing.
Q: Who sponsors the measure?
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.
