California Proposition 3
Make the top income tax rates permanent · November 3, 2026 · Tax year 2031
What Proposition 3 would do
California Proposition 3 would keep the 10.3%, 11.3% and 12.3% income tax rates on high incomes after 2030, when current law ends them.
What changes if it passes
- Keeps the revenue in the Education Protection Account, which allocates it 89% to K-12 schools and 11% to community colleges. The Legislative Analyst’s Office expects roughly 40% of the funding to go to schools and community colleges and the rest to other state programs, part of it to budget reserves.
- Leaves the other rates, and the 1% Mental Health Services Act tax on taxable income above $1 million, unchanged.
Estimates at a glance
Change in individual income tax revenue, tax year 2031
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PolicyEngine estimate
Official estimate
$5B to $15B
Legislative Analyst's Office, Annually from 2031
Tax returns paying more / less
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Returns whose state income tax rises or falls (a joint return counts once)
Current law and if it passes
| Group | Current law | If it passes |
|---|---|---|
| Up to $371,479 | 1% to 9.3% | 1% to 9.3% |
| $371,479 to $445,771 | 9.3% | 10.3% |
| $445,771 to $742,953 | 9.3% | 11.3% |
| Over $742,953 | 9.3% | 12.3% |
| Additional tax on taxable income over $1 million | 1% | 1% |
Who is affected
Single filers with taxable income above about $371,000 and joint filers above about $743,000 (2025 thresholds); the Legislative Analyst's Office says the top 2% of taxpayers pay these rates.
Key facts
- Vote needed
- A majority of the votes cast on it.
- Takes effect
- Tax year 2031; the measure changes no taxes before then.
- Years modeled
- Tax year 2031