The California Billionaire Tax Will Be on the November ballot

The Secretary of State has officially announced the billionaire tax will be on the November proposal.

The Billionaire Tax Act (AG Tracking No. 25-0024A1), if approved, would impose a one-time 5% excise tax on the worldwide net worth of California residents as of January 1, 2026 with net worth in excess of $1 billion at December 31, 2026. (Technically, the tax is lower for those with under $1.1 billion in net worth.)

The tax would be due in 2027, but taxpayers subject to the tax could elect to spread the payment over five years at an additional cost of 7.5% per year

The tax would apply to the taxpayer’s tangible and intangible property, including stocks, other business ownerships, bonds, and collectibles.

Only certain personal debt liabilities could be factored into the net worth calculation.

Real estate and certain pensions and retirement accounts would be excluded from the tax base as would personal property located outside California for more than 270 days in 2026.