California voters will decide Proposition 3 in November 2026, which would make permanent the higher marginal income tax rates on earners above roughly $360,000 single or $721,000 joint that voters first approved in 2012 and extended through 2030 via Proposition 55. The measure qualified for the ballot in June after education and labor unions gathered well above the required signatures. Supporters highlight the $5–15 billion annual revenue stream directed primarily to K-12 schools and community colleges, while opponents, including taxpayer groups, argue it risks driving high earners out of state. Past extensions passed with 55–63 percent support, and organized backing from school employee unions has shaped trader assessments of passage odds.