Prop 3: Make High-Income Tax Permanent

2026 California General Election — West Covina ballot measure research

What it does

Makes the existing high-income tax surcharge first approved by Prop 30 in 2012 and extended by Prop 55 in 2016 permanent instead of letting it expire at the end of 2030. Revenue goes mainly to K-12 schools, community colleges, and Medi-Cal/health care.

Creates or opens door to future tax/obligation? Y — extends existing tax indefinitely

What Prop 3 does and does not do

Current income thresholds (2025, inflation-adjusted)

These thresholds are indexed to inflation and will keep rising. The tax is tied to income, not net worth. A California homeowner with a paid-off house but modest income would not be affected.

How much more the tax is

Prop 3 extends three surcharges on top of California's base top income-tax rate of 9.3%:

Income bracket (single filer, 2025)Rate with Prop 3Rate without Prop 3 (after 2030)Extra tax
$371,479 – $445,77110.3%9.3%+1 percentage point
$445,771 – $742,95311.3%9.3%+2 percentage points
Over $742,95312.3%9.3%+3 percentage points

The separate 1% Mental Health Services Tax on income over $1 million is not part of Prop 3. With both in place, California's current top marginal rate is 13.3%. If Prop 3 fails, the top rate in 2031 would be 10.3%.

Estimated extra state income tax per year for a single filer

Annual incomeExtra state tax per year vs. letting Prop 3 expire
$500,000~$1,800
$750,000~$6,900
$1,000,000~$14,400
$2,000,000~$44,400
$5,000,000~$134,400

These are state income tax surcharges only, not total tax bills. The tax has been at these levels since 2012.

When the tax first applied

The higher rates were first approved by voters in November 2012 as Proposition 30. They took effect for the 2012 tax year, meaning they have been in place for roughly 14 years by the time of the 2026 election. Proposition 55 extended them through 2030. Proposition 3 now asks voters to make them permanent.

Difference from Prop 40

Prop 40 is the billionaire wealth tax on the same ballot. It is based on net worth over $1 billion and taxes assets. Prop 3 is only about income tax rates for high earners. The two measures are separate.

Supporters say

Opponents say

My Vote and Why

My Vote: Yes/No (on the fence)

Why: Extends an existing tax rather than creating a new one, but California already mismanages General Fund dollars and a permanent tax removes a promised sunset

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