California’s Proposed Billionaire Tax Act of 2026

California is considering the Billionaire Tax Act of 2026, which might be on the ballot in November 2026. This act would introduce a one-time tax targeting the state’s wealthiest individuals.

Specifically, it proposes a 5% tax on personal wealth exceeding $1 billion, and it would be retroactive to those living in California from January 1, 2026.

With the deadline approaching, around 2,015 billionaires in California have a limited window to change their tax domicile.

This tax will apply to global assets, such as businesses, stocks, bonds, art, collectibles, and intellectual property. However, it won’t cover directly owned real estate, pensions, or retirement accounts. Residents living in California as of January 1, 2026, would still be taxed even if they move out of state before the election.

The International Service Employees Union United Healthcare Workers West, which endorses this bill, stated that the intention behind the proposed start date is to prevent billionaires from sidestepping responsibility by relocating their assets or changing residency.

According to the union, the revenue from this tax is crucial to fill federal funding gaps affecting essential state services, including health care.

However, opponents argue that this tax is aimed at unrealized gains, or “paper wealth,” and could compel some individuals to sell assets to cover their tax liabilities. There is an option for taxpayers to pay the total amount in one go or in five annual payments with interest, which might help those facing liquidity issues.

A number of billionaires have already started relocating to other states, seeking more favorable tax environments. For instance:

Larry Page

The Google co-founder has filed to either dissolve or move more than 45 California LLCs associated with him. This comes after a trust linked to him purchased two luxurious properties in Miami, worth $101.5 million and $71.9 million.

Sergey Brin

Brin is also looking for a waterfront property in Miami, following the closure of several LLCs that managed his investments in California.

Peter Thiel

The co-founder of PayPal and Palantir opened an office in Florida after purchasing a mansion in Miami Beach in 2020 and registering to vote there.

David Sax

The White House AI and cryptocurrency advisor, along with Kraft co-founder, announced his relocation to Austin, Texas, on New Year’s Eve.

Lindy Snyder

The heirs of In-N-Out Burger have moved their families to Franklin, Tennessee, while maintaining the burger chain’s headquarters in California but planning to consolidate operations by 2030.

Even if enough signatures are collected for the measure to be considered for a vote, it’s uncertain whether California voters will approve it. Tax increases on state ballots have a mixed history, and Governor Gavin Newsom has already gathered opposition against it.