The Hottest State Tax Measures in November Throughout the US
Voters in many states will decide crucial tax measures in November. Here’s a recap of measures I am following:
California Proposition 3: Extension of Personal Tax Rates
The proposition would make permanent the 3 highest rates of 10.3%, 11.3% and 12.3%. The result is a top marginal income tax rate of 13.3% when combined with the state's permanent 1% mental health tax on income over $1 million.
These rates began in 2012 and are effective through 2031. If these rates expired the highest bracket would be 9.3%.
According to the Legislative Analyst’s Office summary, the tax only applies to the top 2% of California taxpayers, who pay about half of all state income taxes.
Note: CA’s 12.3% tax used to be the highest in the nation until Hawaii added a 13% tax bracket for millionaires. New York, New Jersey and DC are the other states that have brackets over 10%.
The 2025 tax rates had the 9.3% bracket ending at $371,479 single and $742,958 joint.
California Proposition 40: Billionaire Tax
The proposal impose a one-time 5% tax on the net worth of individuals (and certain trusts) with a net worth of $1 billion or more who are California residents as of January 1, 2026. This tax would be retroactive which is why so many tax experts believe it would be declared invalid by a court.
The amount of the tax would be based on December 31, 2026 net worth.
Note: If measures approved at the same election conflict, the measure receiving the highest number of votes prevails over the lower voted measure. This means that if either Proposition 41 or 42 receives more votes than Proposition 40, the billionaire tax would not take effect.
Colorado Graduated Corporate and Individual Tax Rates
Amendment 87 would move Colorado from its flat individual and corporate income tax rate of 4.4% to a graduated rate system, effective January 1, 2027.
Since 1987, Colorado has had a flat tax and both the individual and corporate flat tax rates have been the same.
The six proposed income tax rates for both individuals and corporations under the measure are:
3.7% on income up to $25,000;
4.2% on income above $25,000 but less than or equal to $100,000;
4.4% on income above $100,000 but less than or equal to $500,000;
7.4% on income above $500,000 but less than or equal to $750,000;
7.9% on income above $750,000 but less than or equal to $1 million; and
8.4% on incomes above $1 million.
Therefore, the marriage penalty will apply as single and married filers will have the same tax brackets.
Colorado Tax Cap
This measure is in contrast to Amendment 87.
If passed, Colorado Proposition 136, establishes a 4.4% cap on Individual and Corporate Income Tax Rates.
Florida Property Tax Reduction (Amendment 3)
The proposal asks voters to increase the homestead exemption to $150,000 on January 1, 2027, and to $250,000 (other than school district levies) in 2028. The Governor believes that a $250,000 homestead exemption would exempt 60% of Florida residents.
If passed, the amendment would also lower the property assessment cap — which prohibits assessment increases over 10% year to year to 5%.
Iowa Tax Voter Approval (Amendment 1)
If passed, Amendment 1 would require a two-thirds (66.67%) vote of both chambers of the state legislature to pass a bill that would increase the individual or corporate income tax rate or create a new income tax.
Missouri No Taxes At All Investment Fund
If passed, Missouri Amendment 7, would create a permanent endowment fund managed by the state to generate revenue, and using the earnings to eliminate state-imposed taxes. Missouri would be required to invest the funds in exchange-traded funds tracking the S&P 500. No money could be appropriated from the fund until its annual investment earnings are sufficient to replace revenue generated by state taxes. It would require that the money in the fund be used solely to eliminate state taxes, including the individual income tax, the state sales and use tax, the state corporate income tax, and all other state-imposed taxes. After these taxes are eliminated, the amendment would prohibit reenacting them, unless the fund is unable to meet its obligations.
FYI: Missouri also had an August election where voters rejected Amendment 5 (which would have required Missouri to reduce the state individual income tax based on revenue growth until the tax was eliminated and would have prohibited future state income taxes once the tax had been eliminated.)
New Hampshire Property Tax Cap
The proposal requires towns and wards in cities to ask voters whether to institute a school district local tax cap. Approved tax caps would be set at the previous year’s property tax levy, plus the rate of inflation and capital construction expenses.
60% voter approval will be required for a tax cap to take effect.
Strangely enough, the Governor put this on the ballot for the state general elections in November 2026 and November 2028.
North Carolina Tax Cut
If passed, NC initiative (SB 1080) would change the constitutional cap on both individual and corporate income tax rates from the current 7% to 3.5%.
Tennessee Amendment 2, Prohibit State Property Taxes Measure
Tennessee does not have a state property tax but every locality in Tennessee has a property tax. If passed, this law would prohibit the state from imposing a statewide property tax. [I’m not sure but my guess is that Tennessee may be the only state without a statewide property tax.]
Washington Say No To Individual Income Taxes
Initiative IP26-645 in Washington seeks to repeal the state’s newly passed millionaires’ tax which is set to become effective in 2028. Currently, the approved future tax creates a 9.9% tax on individual and household income over $1 million.
The law would prohibit any future state, county, city or local individual income tax
Wyoming Property Tax Cut
If passed Wyoming Initiative 1 would create a homeowner's property tax exemption that exempts 50% of a primary residence's assessed value from property taxation.