Income Tax Changes on the November Ballot: Key Measures to Watch
Voters in several states will decide on key tax measures during the 2026 midterm elections this fall.
Federal taxes often get the most attention, but state and local taxes make up a significant portion of the tax burden for households across the country. As many states grapple with budget pressures and competing revenue demands, whether high earners should pay more taxes is a key question.
That issue will reach voters in several states this November, with 2026 midterm election ballot measures taking different approaches to taxing wealth and high-income households.
Proposals range from changing state income-tax rates to a one-time tax on billionaire wealth — and, in another state, repealing a recently enacted millionaire's tax. Here's more to know.
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2026 State tax measures on the ballot
Note: This information is provided for educational purposes only, and the measures highlighted here are just a sampling of the tax-related questions voters will face on state ballots this November.
Colorado income tax: Amendment 87
This fall, Colorado voters will consider a major change to the state's income-tax system.
If approved, Amendment 87 would replace the Centennial State's current 4.4% flat income-tax rate with a six-tier graduated system beginning with tax years on or after Jan. 1, 2027.
- The proposed marginal rates would range from 3.7% to 8.4%, with the highest rate applying to taxable income above $1 million.
- Those rates would apply to individuals, estates, trusts, and corporations.
Under the proposal, Coloradans with taxable income below $500,000 would generally pay less in state income taxes, while those with taxable income of about $500,000 or more would generally pay more. The tax increase would become substantially larger at higher income levels.
The measure is expected to raise additional state revenue, with the Colorado Legislative Council Staff estimating an increase of about $2.7 billion in the first full fiscal year.
The money would reportedly go toward K-12 public education, healthcare, and early childhood care and education.
Supporters: The Protect Colorado's Future coalition and groups including the Bell Policy Center support the measure. They say it would reduce taxes for most Colorado taxpayers while asking higher-income households to contribute more and raising money for education, healthcare, and child care. The Bell Policy Center says 97% of taxpayers would receive a tax cut under the proposal.
Opponents: Americans for Prosperity-Colorado and the Colorado Chamber of Commerce oppose the measure. They have raised concerns about Colorado's business climate, economic competitiveness, and changes to the state's Taxpayer's Bill of Rights.
Note: A competing measure, Proposition 136 (originally introduced as Initiative 232), would instead cap individual and corporate income-tax rates at 4.4%.
California Billionaire Tax: Will Prop 40 pass?
In California, Proposition 40 takes a different approach. Instead of changing the state's income tax rates, the so-called billionaire's tax would impose a one-time levy on individuals who were California residents on Jan. 1, 2026, with their net worth evaluated as of Dec. 31, 2026
- The tax would be 5% of net worth, generally excluding real estate and certain pensions and retirement accounts, and would be due in 2027.
- Affected taxpayers could spread the payments over five years at an additional cost through an annual deferral charge.
The measure would direct 90% of the revenue to health care, with the remainder going toward education, food assistance, and administrative costs.
The state Legislative Analyst's Office estimates that the tax could generate tens of billions of dollars over several years and that changes in taxpayer behavior, including some billionaires potentially leaving California, could reduce state income-tax revenue by less than $1 billion a year.
Supporters: Backers of Proposition 40, led by SEIU-United Healthcare Workers West, say the tax would help replace healthcare funding affected by federal cuts. Supporters include U.S. Sen. Bernie Sanders, the California Democratic Party and other labor and healthcare groups.
Opponents: Gov. Gavin Newsom and a broad coalition of business, healthcare, education, and labor groups, including the California Business Roundtable, California Medical Association, California Teachers Association, California Professional Firefighters, Planned Parenthood Affiliates of California, and the State Building and Construction Trades Council, oppose the measure. They and other critics argue that a one-time wealth tax could make state revenues more volatile, discourage wealthy residents from staying in California, and reduce future income-tax revenue.
Note: Prop 41 (a proposed change to how certain new taxes interact with the state's spending limit ) and Prop 42 (prohibiting new state taxes on personal property) also appear on the Nov. 3 ballot.
If either receives more affirmative votes than Proposition 40, it would not take effect.
Washington Millionaire tax referendum: Will voters repeal?
In Washington state, voters will decide whether to repeal a new tax enacted in March 2026, rather than whether to impose one.
- As Kiplinger has reported, Senate Bill 6346 established a 9.9% tax on individual and household income above $1 million.
- The tax is scheduled to take effect on Jan. 1, 2028, with the first payments due in 2029.
- The $1 million threshold will be adjusted for inflation, and the tax would apply only to income above that amount.
However, if voters approve Initiative 645, it would repeal the tax and prohibit state and local governments in the Evergreen State from imposing taxes measured by or imposed on individual income.
The state's current fiscal analysis estimates that repealing the tax would reduce state revenue by about $11.4 billion over five fiscal years, with most of the loss affecting the state general fund. Additional reductions would affect an account that supports child care and early learning.
If the tax remains, it's expected to raise between $3 and $4 billion a year beginning in 2029. According to the Tax Policy Center, roughly 25,000 households would be subject to the levy.
Supporters: Let's Go Washington, the campaign behind I-645, argues that Washington should preserve its longstanding absence of an individual income tax and says the new tax could affect families, businesses, and the state's economy.
Opponents: Gov. Bob Ferguson and a coalition that includes public-sector unions oppose the repeal. They argue that eliminating the tax would reduce funding available for education, health care, child care, and other public priorities.
Note: The so-called millionaires tax also faces a separate legal challenge over whether it complies with Washington's constitution.
Election Day 2026: What voters should know
For voters evaluating these measures, the state tax rate is only the starting point. Here are some things to consider before voting on these or other measures.
Read the official ballot language. Campaign materials can emphasize different aspects of a measure, but the official ballot language should explain what a "yes" or "no" vote means.
Look beyond the tax headline. A 9.9% tax on income above $1 million, for example, might not be a 9.9% tax on every dollar a household earns.
Check who's affected. Income thresholds, residency requirements, exemptions, and definitions of taxable income or wealth can substantially change who pays.
Compare the arguments on both sides. Supporters and opponents may be making competing claims about revenue, economic effects, and public spending. Independent state analyses can provide another point of reference.
Keep in mind that these three states aren't the only ones with tax-related measures on the November ballot. Check your sample ballot and research what a particular measure could mean for your bottom line, as well as services or funding in your state.
And, as always, stay tuned. If voters approve any of these measures, new court challenges, implementation decisions, and updated revenue estimates could potentially impact what happens next.
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