This explainer was originally published by our news partners CalMatters. Be prepared for California’s primary: Sign up for CalMatters' free election newsletter and be the first to know when they update the CalMatters 2026 Voter Guide with information on key races.
What does California Proposition 3 do?
The tax, first enacted in 2012, is set to expire in 2031. Under the measure, income taxes for top earners range from 10.3% (for individual income over $360,000) to 12.3% (for individual income over $721,000), with graduated rates in between. Eighty-nine percent of the money goes to K-12 public schools and 11% goes to community colleges, with any excess going to public healthcare. The tax typically raises $5 billion to $15 billion a year.
What do supporters and opponents say?
- California Taxpayers Association
- Reform California
Ballot text
This is how the proposition will appear on the ballot.
PROVIDES PERMANENT FUNDING FOR SCHOOLS AND HEALTH CARE BY EXTENDING EXISTING TAX ON HIGH INCOMES. INITIATIVE CONSTITUTIONAL AMENDMENT. Makes permanent existing voter-approved tax rates for individuals earning over $371,000 (adjusted annually for inflation). Allocates tax revenues to public education. Fiscal Impact: Maintains $5 billion to $15 billion of annual state income tax revenue by making a temporary tax increase on high-income earners permanent instead of letting it expire in 2031.
Source: California Secretary of State
