California has a lot of billionaires, more than any other state and more than most countries. So a proposed wealth tax on its billionaires could be a windfall.
Under the Billionaire Tax Act, California residents with a net worth of over $1 billion would face a one-time tax equal to 5% of their net worth.
The tax plan got one step closer to becoming reality after garnering enough signatures to appear on the ballot. The deadline for ballot measures is June 25, so unless opponents can cut a deal with the groups backing the measure before then, California voters will decide on the tax in November.
If passed, the tax would apply retroactively to billionaires living in the state as of January 1, 2026. The tax would be due in 2027, with the option to spread the payment out over five years, with interest.
The tax plan has drawn sharp reactions from lawmakers and business leaders.
Google cofounders Larry Page and Sergey Brin moved entities tied to them out of the state in December ahead of the deadline, Business Insider first reported.
Nvidia CEO and billionaire Jensen Huang said he was “perfectly fine” with the tax. Palmer Luckey, the billionaire founder of defense tech startup Anduril, said it would force companies to “immediately pivot into profit obsession over mission or long-term sustainability.”
Critics of the tax, including Gov. Gavin Newsom, have warned it will encourage ultrawealthy residents to flee the state and hurt California’s economy. They’ve also said the one-time tax would not provide a sustainable source of funding.
Several left-leaning groups have come out against the tax in recent weeks, including the California Teachers Association and Planned Parenthood Affiliates of California.
Supporters, including SEIU-UHW, a healthcare workers union, say the tax would provide crucial funding for healthcare services to offset federal funding cuts, as well as for education and food assistance programs.
As of January 1, there were 214 billionaires in California, according to Forbes data compiled by Americans for Tax Fairness, a group that advocates for higher taxes.
Below is the full list of billionaires in California. Names with asterisks have recently moved at least some of their business entities out of the state.
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