AlignAlgo Vote · Explainers · Prop 40
California · November 3, 2026 · Initiative Constitutional Amendment and Statute
Proposition 40: Imposes One-Time Tax on Certain Taxpayers.
Levies a one-time 5% tax on the accumulated wealth of taxpayers and trusts with covered assets valued over $1 billion to fund state health care programs, food assistance programs, and public education.
The official ballot language
Imposes One-Time Tax on Certain Taxpayers. Initiative Constitutional Amendment and Statute.
Imposes 5% tax on certain taxpayers with assets over $1 billion; revenue primarily for health care. Exempts revenues from constitutional requirements for school funding and spending limit. Fiscal Impact: Temporary revenue increase of tens of billions of dollars spread over several years from wealth tax on billionaires. Possible ongoing decrease of less than $1 billion per year in income tax revenue from billionaires.
Source: California Secretary of State
What your vote does
A YES vote on this measure means: The state would collect a one-time tax from billionaires equal to 5 percent of their wealth.
A NO vote on this measure means: The state would not collect a one-time tax from billionaires equal to 5 percent of their wealth.
Source: Ballotpedia
What's actually in it — provision by provision
Propositions bundle things together. Here is every operative provision, separately:
Imposes a one-time 5% tax on covered assets over $1 billion (businesses, securities, art, intellectual property; excludes real property and most retirement accounts), retroactive to January 1, 2026.
Basis: Ballotpedia: one-time tax of up to 5% on covered assets over $1 billion; applies retroactively to taxpayers resident as of January 1, 2026.
Revenue funds Medi-Cal and health coverage for low- and moderate-income people (90%) and K-14 education plus food assistance programs (10%).
Basis: Ballotpedia: 90% to the Billionaire Tax Health Account, 10% to the Billionaire Tax Education and Food Assistance Account.
Arguments, both sides
“Vote YES on 40 to tax billionaires. It's time to make billionaires pay their fair share and stop sticking the middle class with the bill.”
— Yes on 40 campaign (Official Voter Information Guide argument) [source]
“We're calling on California's billionaires to step up and pay a one-time, emergency 5% tax to prevent the collapse of California healthcare.”
— Suzanne Jimenez, chief of staff for SEIU-UHW [source]
“Prop. 40 is a flawed, one-time tax scheme that hurts our economy, damages our state budget, and contains a loophole exposing all Californians to taxes we can't afford—but does nothing to lower healthcare costs.”
— No on Prop. 40 campaign (Official Voter Information Guide argument) [source]
“You may not be able to pick up and move to Texas or Florida to shelter your income from taxation, but I promise you that billionaires can, and do. Wealth is movable, and it shops for the state with the lowest taxes.”
— Gov. Gavin Newsom [source]
Who's funding each side
Support: $32.2M · Oppose: $101.7M
As of Reports through September 19, 2026; next filing deadline October 22, 2026.
Top supporters: Service Employees International Union-United Healthcare Workers West; Alan Davis; American Federation of State, County & Municipal Employees Council 57 Issues PAC
Top opponents: Sergey Brin; L. John Doerr, III; Patrick Collison; Eric Schmidt; Vinod Khosla
Source: Ballotpedia campaign finance
Endorsements
- Bernie Sanders
- Ro Khanna
- Tony Thurmond
- Democratic Party of California
- SEIU-UHW
- AFSCME California
- California Federation of Labor Unions, AFL-CIO
- California Federation of Teachers
- California Nurses Association
- National Union of Healthcare Workers
- Teamsters California
- UNITE HERE Local 11
- UNITE HERE Local 30
- California Democratic Socialists of America
- California State PTA
- Indivisible SF
- Gavin Newsom
- Kevin Kiley
- Xavier Becerra
- Steve Hilton
- Daniel Lurie
- California Teachers Association
- State Building and Construction Trades Council of California
- Planned Parenthood Affiliates of California
- California Primary Care Association
- California School Boards Association
- California Taxpayers Association
- California Chamber of Commerce
- California Medical Association
- California NAACP State Conference
- California Professional Firefighters
- Howard Jarvis Taxpayers Association
Source: Ballotpedia
Polling
Public Policy Institute of California · Sept. 4, 2026–Sept. 10, 2026
Yes 52% · No 46% · Undecided 2%
1103 LV
UC Berkeley Institute of Governmental Studies / Los Angeles Times · Aug. 3, 2026–Aug. 9, 2026
Yes 48% · No 41% · Undecided 11%
2310 LV
Public Policy Institute of California · May 14, 2026–May 18, 2026
Yes 54% · No 45% · Undecided 1%
986 LV
UC Berkeley Institute of Governmental Studies · March 9, 2026–March 15, 2026
Yes 52% · No 33% · Undecided 15%
5109 RV
Citrin Center at UC Berkeley and POLITICO · Feb. 25, 2026–March 3, 2026
Yes 50% · No 28% · Undecided 23%
1220 RV
The Mellman Group / Kensington Avenue Strategies · Jan. 6, 2026–Jan. 12, 2026
Yes 48% · No 38% · Undecided 14%
800 LV
Fiscal impact
Temporary revenue increase of tens of billions of dollars spread over several years from wealth tax on billionaires. Possible ongoing decrease of less than $1 billion per year in income tax revenue from billionaires. (Ballotpedia.)
How does Proposition 40 line up with your values?
Take the 13-question AlignAlgo Vote questionnaire and get a scored breakdown of this measure — provision by provision.
Sources
- https://elections.cdn.sos.ca.gov/ccrov/2026/july/26196jj.pdf
- https://voterguide.sos.ca.gov/propositions/40/index.htm
- https://ballotpedia.org/California_Proposition_40,_One-Time_Wealth_Tax_for_State-Funded_Healthcare,_Education,_and_Food_Assistance_Programs_Initiative_(2026)
- https://www.sos.ca.gov/elections/ballot-measures/qualified-ballot-measures
- https://ballotpedia.org/California_Proposition_40,_One-Time_Wealth_Tax_for_State-Funded_Healthcare,_Education,_and_Food_Assistance_Programs_Initiative_(2026)
- https://ballotpedia.org/California_Proposition_40,_One-Time_Wealth_Tax_for_State-Funded_Healthcare,_Education,_and_Food_Assistance_Programs_Initiative_(2026)