Prop. 40 Wealth Tax Trails in California
Early returns show the one-time 5% billionaire tax losing ground as Rep. Ro Khanna keeps his House seat.
Updated on Nov. 4, 2026 in Elections
Live Poll
Should California tax billionaires' wealth? Would you vote yes?
With about 60% of ballots counted, the 'No' campaign led Proposition 40, a one-time 5% wealth tax on billionaires, with 55.6% of the vote against 44.4% for 'Yes.' Over 7.6 million ballots had been counted as of Wednesday morning.
Why it matters
The measure would have imposed a one-time levy on California billionaires, making its outcome a closely watched test of wealth-tax proposals in the state. Rep. Ro Khanna has said he will back the tax again in the next election cycle if it fails now.
With about 60% of ballots counted, Prop. 40 stood at 55.6% No and 44.4% Yes, and Khanna led Republican challenger Ritesh Tandon 70.5% to 29.5% in California's 17th District with about 48% tabulated. Final results for both races remain pending as remaining ballots are tabulated.
The players
Ro Khanna
A Democratic U.S. Representative from California who retained his seat in the 17th Congressional District and has vowed to back the wealth tax in the next cycle.
Ritesh Tandon
A Republican candidate who challenged Rep. Ro Khanna in California's 17th Congressional District.
The details
Votes were counted in stages as results rolled in on Election Night and Wednesday morning. Khanna posted a video to X on Election Night celebrating the return of DEI, and said he will be first in line supporting the wealth tax in the next cycle if it does not pass this time.
Timeline
Nov. 3, 2026: Election Night voting and early result reporting in California.
Nov. 4, 2026: Morning vote count showed Prop. 40 trailing and Khanna's seat projected.
Political Context
Proposition 40 is a one-time 5% tax on California billionaires, and its fate is being measured against the state's wider debate over taxing extreme wealth. Supporters of the measure, including Khanna, frame the levy as a model they intend to revive if voters reject it now.
If Proposition 40 fails, the proposed one-time 5% billionaire tax will not be imposed on California billionaires. Khanna has said he will back a renewed version in the next election cycle.
The takeaway
The early count points to a close, contested fight over whether California will tax its billionaires, and the final tally will determine whether the idea returns in the next cycle.
Further reading
For more on how the measure fared across the state, see California Elections.
Live Poll
Should California tax billionaires' wealth? Would you vote yes?
