Prop 3 High-Income Tax Extension, California 2026: Who's Paying and Why

On the November 3 Ballot

Prop 3: High-Income Tax Extension

Makes the 2012 tax on top earners permanent

Who paid to put it on the ballot California Teachers Association, through a petition drive.

History Only voters can extend it. It's in the state constitution: voters approved it in 2012 (Prop 30) and extended it in 2016 (Prop 55).⁶

A YES vote means: The income tax increase on high earners, in place since 2012, would become permanent instead of expiring in 2031.⁷
A NO vote means: The tax increase would expire in 2031 as scheduled.⁷

Yes side $77.4M No side $0 Who gains, who pays

Who it helps if it passes

K–12 schools and community colleges, which get most of the money
Public health care, which gets any excess

Who pays or loses if it passes

People earning more than about $371,000 a year, roughly the top 2% of tax filers. No one else's taxes change.

What the funders get Teachers' unions paid for nearly all of it. Most of the money goes to school budgets, which pay their members' salaries.¹

Cost to taxpayers No new tax. It keeps $5 billion to $15 billion a year in state revenue that would otherwise end after 2031.⁷

Makes permanent a tax on high-income earners that is set to expire in 2031. Rates run from 10.3% to 12.3% on individual income above about $371,000.⁷

About 89% of the money goes to K–12 schools and 11% to community colleges, with any excess going to public health care. If it fails, the tax expires in 2031 as scheduled.⁷

YES side special interest: Medium

✓ One funder dominates: California Teachers Association paid 77% of the YES money¹
✓ Funders profit: Teachers' unions; the money funds the schools that employ their members (our judgment)
✗ Narrow benefit: Schools and colleges statewide (our judgment)
✗ Outside money: 11% of the YES money came from outside California¹

NO side special interest: None

✗ One funder dominates: No major funders¹
✗ Funders profit: No major funders¹
✗ Narrow benefit: No major funders¹
✗ Outside money: No major funders¹

Endorsed by

California Teachers Association
California School Employees Association
California State PTA
California Medical Association
California Democratic Party

Opposed by

Funding the YES campaign

$77.4M¹

California Teachers Association

$60.0M
National Education Association

$7.5M

National teachers' union, Washington, D.C.
California School Employees Association

$2.6M
California Federation of Teachers

$1.8M
SEIU California State Council

$1.5M
SEIU Local 2015

$1M
AFSCME and American Federation of Teachers (national)

$950K

National unions, Washington, D.C.
United Domestic Workers of America

$852K
California Democratic Party

$798K
California Professional Firefighters

$500K

Funding the NO campaign

No committee has raised $1M or more. That is the state's threshold for reporting top donors.

Sources for this measure: ^1,6,7,8