California voters have rejected the California billionaire tax, defeating Proposition 40 — a one-time 5% levy on the fortunes of the state’s billionaires — by 52.8% to 47.2%, according to a race call by The Associated Press on Monday evening.
The result, called with about 83% of the expected vote counted, ends one of the most expensive and divisive ballot fights in California history. With 5,909,778 votes against the measure and 5,288,379 in favour, the “no” side led by roughly 621,000 votes — a margin the AP judged impossible to overturn. NPR Illinois reported the result on Monday night, noting the measure split Democrats in a state where they heavily outnumber Republicans.
The vote itself took place on Tuesday, November 3, 2026, but the outcome was not known for six days. California counts mail ballots postmarked by Election Day that arrive within a week, which is why the count dragged on. Early returns had looked worse for supporters — with three-fifths of the vote in on Wednesday, the “no” side led 56% to 44% — before the margin narrowed to 52.8% to 47.2%.
What the California Billionaire Tax Would Have Done
Proposition 40 would have imposed a one-time 5% tax on the net worth of Californians worth more than $1 billion who were residents of the state on January 1, 2026, with payment due in 2027. A smaller, phased-in rate would have applied to those worth between $1 billion and $1.1 billion. The measure would have applied to somewhere between 200 and 250 people, according to estimates.
Supporters said the tax could have raised about $100 billion. Most of the money was earmarked for healthcare programmes, with education and food-assistance programmes also set to receive funds. The campaign was placed on the ballot by the healthcare workers’ union SEIU-UHW, whose argument was blunt: the Republican-controlled Congress had cut healthcare programmes to give tax breaks to the wealthy, so it was time for California’s wealthy to fill the gap.
A Record $378 Million Campaign
The opposition outspent supporters by more than ten to one. Opponents spent $378.4 million against the measure, against $33.5 million raised by the “yes” campaign, according to a CalMatters tally. Google co-founder Sergey Brin alone put in $102 million against it and led other wealthy Californians in a surge of spending opposing the measure.
Brin also drove a campaign that put two other proposals on the ballot to block the billionaire tax from taking effect even if voters had approved it. That spending gap — at least five times as much against as for, by NPR’s count — made this one of the most lopsided campaign-finance fights in California ballot history.
A Measure That Divided Democrats
The most striking feature of the result is how it split California’s Democrats. The state’s Democratic Party favoured Proposition 40, as did Representative Ro Khanna and Senator Bernie Sanders, who travelled to the state to campaign for it.
But Democratic Governor Gavin Newsom opposed the tax, saying it would be better to have a national tax on the wealthy — and warning it would drive the state’s wealthiest residents and tech founders out of California. Xavier Becerra, the Democratic candidate for governor, also opposed it. A leading teachers union opposed the proposal too, because it would have set aside only a small portion of the resulting revenue for schools.
California’s courts and election rules have already been at the centre of political fights this autumn.
How California Voted
The statewide result hides a sharp regional divide. San Francisco County and Los Angeles County backed the measure, with 56.2% and 55% of voters respectively in favour. But Orange County voted “no” by 59.3% and San Diego County by 54.3%, and the measure was rejected in most counties across the state.
Two companion measures were also on the ballot. Proposition 41, which would have required the state auditor to examine new special tax proposals before they appear on the ballot, was also rejected, with “no” earning 54.8%. Proposition 42, which would bar retroactive taxes and new taxes on certain types of personal property such as retirement accounts and art collections, was leading 51.6% to 48.3% on Monday evening but had not yet been called.
What Happens Next
The final count is still to come, and the California Secretary of State must certify the November 3 election on December 11. But the verdict on Proposition 40 is settled: California’s voters rejected the billionaire tax.
The defeat is a setback for the progressive agenda in the country’s most Democratic large state, and a warning for similar proposals elsewhere. Governor Newsom backed Proposition 42 instead of Proposition 40, and if that measure passes, it would close the door on future wealth taxes in California altogether. The debate over taxing the very wealthy is not over — but in California, for now, the voters have said no.