Prop 3 Would Make High-Earner Tax Permanent
California voters will decide whether to remove the expiration date from a tax on high incomes that funds schools and health care.
Updated on Nov. 2, 2026 in Taxes
Live Poll
Should high-income Californians permanently pay higher taxes to fund schools and health care?
California Proposition 3 would extend the existing tax on Californians earning over $371,000 annually, removing its scheduled 2031 expiration. The measure appears on the November 2, 2026 ballot.
Why it matters
The tax funds public schools and health care, and supporters say school systems would face major layoffs without it. Opponents argue the measure does not curb wasteful spending in education.
Proposition 3 would apply rates of 10.3% to 12.3% on incomes above $371,000 and $721,000, with projected annual revenue of $5 billion to $15 billion. The estimate is a projection, and the extraction does not specify the margin of error or how revenue would be distributed among programs.
The players
California Teachers Association
A large statewide union representing public school teachers that supports Proposition 3.
California Taxpayers Association
A business-oriented advocacy group that opposes Proposition 3 and similar tax measures.
The details
The tax was first enacted in 2012 and is scheduled to expire in 2031. Proposition 3 would remove that expiration date, and the rate depends on individual income.
Timeline
2012: The tax was first enacted.
2031: The current tax is scheduled to expire.
November 2, 2026: Proposition 3 appears on the ballot.
Roadmap
Proposition 3 extends the high-income tax first enacted in 2012 by removing its scheduled 2031 expiration. The ballot measure asks voters to convert a temporary revenue source into a permanent part of California's tax structure.
Californians earning over $371,000 would continue paying the 10.3% to 12.3% rates past 2031 if the measure passes. Those affected should review how a permanent rate could change long-term tax planning.
The takeaway
A permanent tax changes the planning horizon for high earners, since they can no longer assume it will expire in 2031. Reviewing your income bracket against the proposed rates can clarify how the measure might affect your liability.
What happens next
Voters will decide Proposition 3 on November 2, 2026.
Further reading
Explore more on Taxes to see how state income tax measures are structured and debated.
Live Poll
Should high-income Californians permanently pay higher taxes to fund schools and health care?
