California has the most active exit- and wealth-tax proposal environment of any state we cover. This article is California only — not law until enacted. Compare what is already enforced.
2026 Billionaire Tax Act (ballot pending)
Organizers submitted signatures in April 2026 for a November 2026 ballot measure (Initiative 25-0024). If qualified and approved, public summaries describe:
- One-time 5% tax on worldwide net worth for individuals who were California residents with net worth above $1 billion (measurement around January 1, 2026)
- Phased payments beginning 2027
- Constitutional amendment component that could ease future wealth-tax legislation
Status: Not law until voters approve and challenges resolve. Still a planning trigger for ultra-high-net-worth households with California ties.
Recurring legislative wealth-tax bills
Bills such as AB 259 (recurring wealth tax concepts) have not become law in prior sessions. The ballot route is politically distinct.
Why non-billionaires should care
- Precedent — Successful billionaire taxes expand the window for broader measures
- Business owners — Pass-through income uses the same 13.3% top state brackets in our calculator; enter W-2 and business income separately
- Housing market — Departure of high earners affects coastal home values and tax base
What to do now
- Model current law in calculators — Los Angeles default, no local wage tax
- Establish domicile before asset events if you already plan to leave
- Watch November 2026 if CA net worth exceeds nine figures
- Consider destinations with constitutional barriers to wealth taxes (Texas Prop 3)
Related: CA exit & residency · All states summary · Why move now
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