Proposition 3: High-income tax extensionMakes the extra income tax on the highest earners permanent
Read the full text of the measure: Official Voter Information Guide (PDF)
In plain words
Since 2012, Californians with high incomes have paid extra income tax rates on top of the regular ones. Voters extended that in 2016, but it is set to end. This makes it permanent. It applies only to income above about $371,000 for a single person or $742,000 for a married couple filing together. Most of the school share goes to K-12 schools and community colleges. (sos.ca.gov (Official Voter Information Guide) )
Before and after
| Question | Today | If it passes |
|---|---|---|
| Extra tax rates on high incomes | Set to expire in 2031 | Permanent |
| Who pays | Income above about $371,000 (single), $742,000 (joint), $505,000 (head of household) | Same, adjusted each year for inflation |
| Money raised | $5 billion to $15 billion a year until it ends | $5 billion to $15 billion a year, ongoing |
| Where the school share goes | 89% K-12, 11% community colleges | Same; local boards decide how to spend it |
Numbers from the official ballot title (ballot title ); also see (sos.ca.gov (Official Voter Information Guide) )
Example
Illustration only: top earners' rates run from 10.3% to 12.3% with this tax. A single filer with $50,000 of income above the $371,000 line, taxed 1 point higher on that slice, pays about $500 a year more than if the tax ended. (sos.ca.gov (Official Voter Information Guide) )
Biggest change
- Makes the higher income tax rates on high earners permanent instead of letting them expire. source: sos.ca.gov (Official Voter Information Guide)
Who it affects most: The top earners who pay it (the top 2% of taxpayers pay about half of state income tax), and public schools, community colleges and health programs that get the money.
Cost to the state: Keeps $5 billion to $15 billion a year of state income tax money that would otherwise end, depending on the stock market; about 40% goes to schools and community colleges (Legislative Analyst).
Our plain-words summary. Every line points to its source.
What your vote means
The extra income tax on income above about $371,000 (single) or $742,000 (joint) becomes permanent instead of ending.
The extra income tax on high incomes expires as scheduled in 2031.
Our one-line summary. The official "What your vote means" statements are in the Secretary of State's Official Voter Information Guide, linked below.
Why people want it, and why others object
Why this is on the ballot
Voters put this on the ballot by signing a petition. It changes the state constitution, so only another statewide vote can change it back. It passes with a simple majority.
- Prop. 30 (2012) raised income tax rates on high earners and Prop. 55 (2016) extended them; the official summary says they are set to expire in 2031. The California Teachers Association placed this initiative on the ballot. source: CalMatters
Touches the state's tax-limit rules: California's spending limit and local tax votes, in plain words, explained.
Why supporters want it
- Official argument in favor: "PROPOSITION 3 PROTECTS OUR SCHOOLS AND HEALTHCARE WITHOUT RAISING YOUR TAXES." Signed by David Goldberg (California Teachers Association), Katie Nilsson, RN (California School Nurses Organization) and Jodi Hicks (Planned Parenthood Affiliates of California). source: sos.ca.gov (Official Voter Information Guide)
- Supporters say losing up to $15 billion a year would likely lead to school layoffs and program cuts. source: CalMatters
Why opponents object
- Official argument against: "Prop. 3 makes temporary income taxes permanent while Sacramento wastes billions on failed programs" Signed by Robert Gutierrez (California Taxpayers Association), Robert Rivinius (Family Business Association of California) and Julian Canete (California Hispanic Chambers of Commerce). source: sos.ca.gov (Official Voter Information Guide)
- Opponents say California already has some of the highest income taxes in the nation and the tax could push wealthy residents to leave. source: CalMatters
Who backs each side
- For: California Teachers Association, California School Employees Association, California State PTA, CA School Nurses Organization, Planned Parenthood Affiliates of CA, California Democratic Party. Against: California Taxpayers Association, Family Business Association of California, California Hispanic Chambers of Commerce, Reform California. source: voterguide.sos.ca.gov (Secretary of State)
- Money (Secretary of State, through Oct. 6, 2026): committees in support reported $46,260,006, mostly "Yes on Prop 3 to Protect Public Education, Health Care and Budget Stability" ($44,174,753). The opposing committee, sponsored by the California Taxpayers Association, reported $5,500. source: sos.ca.gov (Secretary of State)
In each side's own words where we could find them, quoted or summarized with a link to the source. We don't endorse either side.
What you will see on your ballot
Official ballot wording, word for word (tap to open)
The official ballot title, word for word from the Secretary of State's Official Voter Information Guide .
PROVIDES PERMANENT FUNDING FOR SCHOOLS AND HEALTH CARE BY EXTENDING EXISTING TAX ON HIGH INCOMES. INITIATIVE CONSTITUTIONAL AMENDMENT.
YES
NO
Official title copied word for word from the Official Voter Information Guide (page 26). The title and summary are prepared by the Attorney General.
Official summary by the Attorney General (tap to open)
Makes permanent the existing 2012 voter-approved tax rates for high-income Californians, currently set to expire in 2031. Rates apply to income over about $371,000 for single filers, $742,000 for joint filers, and $505,000 for heads of household (2025 levels; adjusted annually for inflation). Allocates tax revenues 89% to K–12 schools, 11% to community colleges. Allows local school boards to decide how revenues are spent; bars use for administrative costs. Increases General Fund revenues available for health care, budget reserves, and other programs.(sos.ca.gov (Official Voter Information Guide) )
Latest news
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Full text of the measure
The full text of the proposed law is printed in the Official Voter Information Guide. Read it in the Official Voter Information Guide (PDF) .
Read more
- Secretary of State: Official Voter Information Guide, Nov. 3, 2026 (PDF)
- Official Voter Information Guide: Proposition 3
- Official arguments and rebuttals
- Legislative Analyst's analysis
We link to analysis from several sources; we don't endorse it.