California voters will decide this November whether to make permanent an income tax increase on high earners that was originally approved as a temporary measure in 2012. The proposal, Proposition 3, is one of 14 measures on the November 2026 statewide ballot.
In 2012, voters passed a seven-year income tax increase on single filers earning $250,000 or more and couples earning $500,000 or more, along with a temporary sales tax increase that pushed the statewide rate from 7.25 percent to 7.5 percent for four years. All revenue from the income tax portion was directed to local school districts and community colleges. The sales tax increase expired on schedule and the rate returned to 7.25 percent, where it has remained since, though counties and cities can and do add their own local sales taxes on top of that base rate.
In 2016, voters extended the income tax increase from its original seven years to 12 years. Proposition 3 would take the next step and make those income tax brackets permanent.
Who would be affected
The income thresholds are adjusted annually for inflation. At 2025 levels, the brackets affected are:
- $371,000 or more for single filers
- $505,000 or more for head-of-household filers
- $742,000 or more for married couples filing jointly
Under Proposition 3, 89 percent of the resulting tax revenue would go to local K-12 school districts, with the remaining 11 percent allocated to community colleges. Local school boards would decide how the money is spent, with the stipulation that none of it can be used for administrative costs. The state’s Legislative Analyst’s Office estimates the measure would generate between $5 billion and $15 billion annually.
California’s public school enrollment has been declining. State figures show 5,731,260 students currently enrolled, a 7 percent drop from a decade ago, including a 1.3 percent decline in the past year alone.
Voters will decide the measure’s fate alongside 13 other propositions on the November 2026 ballot.
