A record number of state income tax fights are coming before voters in the midterms, including proposals to tax billionaires, replace flat rates and repeal a new levy. Barron's described the ballot contests as an ideological tug-of-war over state policy. Election Day is November 3.
The total depends on what gets counted. The National Taxpayers Union’s ballot guide lists 59 statewide measures across 24 states affecting taxpayer dollars, including tax questions and government borrowing. MultiState counts at least 27 tax measures in more than a dozen states, while the Tax Foundation identifies 33 tax-related measures and singles out 15. The Economic Policy Institute counts over 150 state ballot measures overall.
Those figures cover different ground. Some tallies include borrowing or property and sales taxes, not only income-tax proposals. State measures range from new levies to limits on how governments can raise or keep revenue.
| State or measure | Proposal before voters |
|---|---|
| California, Proposition 40 | One-time 5% tax on the net worth of residents with more than $1 billion |
| Colorado, Amendment 87 | Replace the flat tax with graduated rates |
| Washington, Initiative 645 | Repeal the new high-income tax and bar state and local individual income taxes |
| North Carolina | Cap the income-tax rate at 3.5%, down from a current maximum of 7% |
| Iowa, Amendment 1 | Require a two-thirds vote of both legislative chambers for specified tax increases |
| Massachusetts, Question 5 | Limit state revenue growth to wage and salary growth |
California and Colorado offer voters competing tax designs
California’s Proposition 40 would apply to people deemed state residents on January 1, 2026, and tax their wealth as of December 31, 2026. A person who moved away after the residency date could still owe the levy in 2027 if it passes. Sponsors estimate $100 billion in additional revenue, with 90% set aside for health care and the rest for K-12 education, food assistance and administration.
The Tax Foundation calls the proposal a potential first U.S. wealth tax and warns of legal, administrative and economic concerns. Critics question the revenue estimate and say the tax could prompt wealthy residents to leave, while some argue that people who are not billionaires could bear part of its cost. Mark Cuban and Rep. Ro Khanna clashed over the proposal on X in August; Cuban argued it would drive startup founders from California.
Other California measures could change the outcome. Proposition 41 would bar enforcement of new taxes that exempt themselves from the state’s Gann spending limit and require audits of new special taxes. Proposition 42 would bar new taxes on retirement holdings, personal assets and savings, and limit retroactive taxes. If either receives more votes than Proposition 40, it would invalidate the wealth tax. Proposition 43 would require a two-thirds vote for local citizen-initiated special taxes.
Voters also face Proposition 3, which would renew additional income taxes first enacted with Proposition 30 in 2012. The top income-tax rates are also proposed for permanent extension, with an estimated $5–15 billion annually at stake. The Council for Citizens Against Government Waste opposes Proposition 40 and backs Colorado’s proposed rate cap, Proposition 136.
Colorado Amendment 87 would leave rates unchanged for households and businesses earning $100,000–$500,000 a year, lower taxes below that range and modestly raise them above $500,000. Analysts estimate the change could generate over $2 billion for education, health and child care. The state projected about $17 billion in general fund gross revenue for FY25–26.
The proposal would alter the flat-tax structure Colorado adopted alongside its Taxpayer’s Bill of Rights, or TABOR, in 1992. The Economic Policy Institute says TABOR caps revenue even when the economy grows, leaving public services behind population growth and aging. It points to low teacher salaries, high turnover and schools shifting to four-day weeks. Separately, Proposition 136 would cap individual and corporate income-tax rates at 4.4%, while Proposition NN would let the state retain revenue above the TABOR limit instead of refunding it. The National Taxpayers Union estimates taxpayers would forgo about $4.6 billion in refunds over the first decade under Proposition NN.
Washington voters could undo a tax signed in March
Gov. Bob Ferguson signed Senate Bill 6346 in March, establishing a 9.9% tax on household income above $1 million. Households below that threshold remain at a 0% income-tax rate. The state projects the levy will raise about $3.1 billion in its first year.
Initiative 645 would repeal the tax and prohibit state and local taxes on individual income. The National Taxpayers Union describes repeal as stopping a projected $3.1 billion annual increase. The Council for Citizens Against Government Waste supports the initiative, calling it a safeguard for Washington’s economic competitiveness.
North Carolina’s proposed 3.5% ceiling would cut the current maximum allowable rate in half. Iowa Amendment 1 would require a two-thirds vote from each legislative chamber to raise individual or corporate income-tax rates or establish a new state income tax. Massachusetts Question 5 would tie the state’s revenue limit to wage and salary growth, including revenue from its millionaire’s surtax.
Property-tax proposals show how broad the ballot count becomes
Florida Amendment 3 would gradually increase the homestead exemption, excluding exemptions directed to schools, and tighten assessment caps. It needs 60% support to pass. A University of North Florida Public Opinion Research Lab poll of 1,471 likely voters found 50% would vote yes, 30% solidly no and 14% undecided.
The Florida House projects an almost $12 billion annual reduction in local non-school property-tax revenue once the measure is fully implemented. The Economic Policy Institute estimates the cut at $12 billion annually, equivalent to 17% of local government compensation statewide and putting 123,000 local government jobs at risk. Amendment 2 would separately exempt tangible personal property used for agriculture and agritourism.
Other ballot questions would alter local or household tax bills. Wyoming Initiative 1 would exempt 50% of a qualifying homeowner’s primary-residence assessed value, with estimated state revenue reductions of $92.6 million in FY2028 and $95.9 million in FY2029. Oklahoma State Question 847 would cut the annual property-valuation growth cap for homesteads and agricultural property from 3% to 1.75%. Arizona Proposition 316 would cap local grocery sales taxes at 2% of the base price and require voter approval for increases.
Tax messaging faces a test beyond state ballot questions
The federal tax debate forms part of the political backdrop. A PF Global poll found 70% of respondents called taxes important, but only 9% named them as the most important issue. Support for the “One Big Beautiful Bill Act” stood at 30%; when pollsters used “Working Families Tax Cuts,” support reached 40%. About 70% had heard of the first name, while only about one in five could describe the new one.
GOP strategist Colin Reed said voters were already looking beyond the 2025 tax changes. “Elections are more about the future than the past. Even if people and small business owners are happy that their taxes didn't go up in 2025, they also want to know what's going to happen in 2027”
The National Taxpayers Union’s Tommy Aiello, vice president of federal affairs, said voters deserve plain-language descriptions of the tax and spending questions on their ballots. Its guide covers measures in 24 states.
