| State | Legislation/Ballot Initiative | Existing Surtax on High Income Earners | Summary/History | Status |
|---|---|---|---|---|
| California | Ballot Initiative: 2026 Billionaire Tax Act | No | The 2026 Billionaire Tax Act, a California ballot initiative, would ostensibly impose a one-time tax of 5% on the net worth of the state’s billionaires. Due, however, to aggressive design choices and possible drafting errors, the actual rate on taxpayers’ net worth could be dramatically higher. Proposal: 5% tax on net wealth of $1 billion+ | Currently collecting signatures. Gov. Gavin Newsom (D) said he will not be signing a wealth tax bill and is actively working against the proposed ballot initiative. Rep. Kevin Kiley (R-CA) gave a speech on the (U.S) House floor opposing the proposal. Notably, some (U.S) House Democrats came out against the proposal include Reps. Sam Liccardo (D-CA), Kevin Mullin (D-CA), Zoe Lofgren (D-CA), Doris Matsui (D-CA), Eric Swalwell (D-CA) and former Rep. Katie Porter (D-CA). Porter and Swalwell are currently running for Governor in 2025. |
| Hawaii | Legislation: S.B. 313 / H.B. 1235 | No | Hawaii's proposed legislation advanced in the 2025 legislative session, passing Senate committees and aiming for a 1% tax on net worth over $20 million for high-net-worth individuals, potentially starting in 2030 if enacted; it remains a significant proposal positioned as addressing tax fairness by taxing assets like real estate, stocks, and art. Proposal: 1% tax on new wealth of $20 million+ | N/A |
| Illinois | Legislation: Extremely High Wealth Mark-to-Market Tax Act (S.B. 2111 / H.B. 3039) | No | The proposal would tax unrealized gains of billionaires on a mark-to-market basis. It faces substantial legal challenges due to Illinois’ constitutional flat-tax requirement. As of early 2026, the proposal remains under discussion with no definitive legislative outcome. Proponents argue it targets extreme wealth, while opponents cite valuation challenges and constitutional barriers similar to those that derailed the prior “Fair Tax” effort. | N/A |
| Michigan | Ballot Initiative: Invest in MI Kids | No | The initiative proposes a constitutional amendment to add a 5% surtax on annual taxable income exceeding $500,000 for individuals or $1 million for joint filers—on top of Michigan's existing flat 4.25% income tax—beginning in 2027. This "millionaires tax" would generate an estimated $1.7 billion annually, dedicated exclusively to the State School Aid Fund for K-12 public schools to address underfunding, support teacher retention, reduce class sizes, and fund facilities like career-technical education. | Currently collecting signatures. |
| Minnesota | Legislation: “Protect Medicaid, Not Millionaires Act” (H.F. 2591) | Yes - 1% on net investment income exceeding $1 million | The proposal would establish a new fifth tier in Minnesota’s individual income tax structure, imposing a surtax rate on high-income earners (millionaires) at a level sufficient to offset any lost federal Medicaid funding due to changes enacted in the 2025 federal One Big Beautiful Bill Act that are incorporated into the state tax system. | The bill remains in early stages in the House with no advancement reported as of January 2026. |
| Rhode Island | Legislation: Fair Share Tax Package | No | The package consists of four proposals: a 3% income surtax on taxable income above about $640,000; a 1% wealth tax on Rhode Island filers’ worldwide financial assets above $25 million, excluding real estate and retirement-type assets; a 4% tax on passive investment income (like capital gains, dividends, interest, some rents and royalties) but not on active business income or retirement income; and a digital advertising tax on large platforms’ Rhode Island ad revenues, applied only to firms with at least $1 million in in‑state digital ad receipts. | Gov. Dan McKee (D) endorsed a "millionaires tax" in his FY2027 budget proposal, raising the top income tax rate to 8.99% on earnings over $1 million to generate $67 million in FY27 and $135 million in FY28 while offsetting cuts to other levies benefiting lower-income residents. Progressives criticized it as insufficient compared to their "Fair Share" package targeting incomes above $640,000 and adding wealth taxes, while business groups opposed any tax hikes amid competitiveness concerns. |
| Washington | Legislation: S.B. 5486 / H.B. 1473 (2023) | No | The Washington State wealth tax proposal is currently stalled and has not been enacted, despite recurring legislative efforts and strong public interest, with recent bills facing hurdles like legal challenges (related to Washington's constitutional income tax ban) and debate over implementation. | Prior proposal not enacted. Rep. Michael Baumgartner (R-WA) gave a speech on the (U.S.) House floor opposing the proposal. In December 2025, Gov. Bob Ferguson (D) announced his support for a proposed “millionaires tax," a 9.9% state income tax on annual earnings exceeding $1 million (affecting less than 0.5% of residents). It is estimated to generate at least $3 billion annually once fully phased in around 2028–2029, with revenue earmarked for working families, small businesses, education, and reducing regressive taxes like sales tax on essentials. |
| Updated | January 26, 2026 |
Previous Proposals
| State | Legislation/Ballot Initiative | Existing Surtax on High Income Earners | Summary/History | Status |
|---|---|---|---|---|
| Rhode Island | Legislation: Non-Owner-Occupied Property Tax Act (also known as the Taylor Swift Tax) (FY26 budget provision) | No | The tax imposes a 0.5% annual surcharge, starting July 1, 2026, on the portion of assessed value above $1 million for non–owner-occupied residential properties used fewer than 183 days a year, with primary residences and properties rented more than 183 days exempt. | Enacted |
| Maryland | Legislation: Fair Share Maryland | No | Maryland does not have a broad net‑worth tax but adopted higher income‑tax brackets on high earners (top rate up to about 6.5%), a 2% capital gains surtax for high‑income taxpayers, and higher local income‑tax caps, effective beginning with tax year 2025, targeting high-income earners rather than all assets. Existing estate and inheritance taxes also apply to wealth transfers. | N/A |
| Massachusetts | Ballot Initiative: Fair Share Amendment (Millionaire's Tax) | Yes – 4% tax on income over $1 million | The Fair Share Amendment, effective 2023, adds a 4% surtax on annual taxable income above $1 million (indexed), with revenue dedicated to education and transportation. Early data show substantial new revenue and no clear evidence of a large‑scale exodus of high‑income residents, although tax planning remains common | Enacted |
| Minnesota | Legislation: H.R. 1938 | Yes – 1% tax on targeted investment income | Minnesota has a Net Investment Income Tax (NIIT), not a broad wealth tax, which is a 1% tax on the portion of an individual's, estate's, or trust's net investment income (like interest, dividends, capital gains, royalties) exceeding $1 million, effective for tax years beginning after December 31, 2023. | Enacted |
| Nevada | Legislation: Wealth Proceeds Tax (ACR7, 2023) | No | Nevada has no state income tax and no wealth tax, and the state’s political climate strongly favors low taxes to attract high‑net‑worth residents; discussions regarding legislation like ACR7 have not resulted in concrete wealth‑tax legislation moving forward. Proposals periodically arise but remain conceptual with no active bill advancing. | N/A |
| New York | N/A | Yes | New York State does not currently have a specific, separate wealth tax on assets; instead, it taxes high earners through a progressive income tax system, including a high top rate (up to 10.9%) on large capital gains and income. But proposals for a direct wealth tax continue to be debated in the legislature, with some lawmakers open to it, while Governor Hochul remains cautious about driving away wealthy residents. | N/A |
| New York City | Campaign Issue: Mamdani's Millionaire's Tax | No | New York City does not levy a separate broad wealth tax on total assets, but the City imposes significant income taxes on top of New York State taxes. Progressive lawmakers have floated a “mark‑to‑market” tax on billionaires’ unrealized gains, but such a tax would require state approval and faces significant political and legal hurdles. | New York City Mayor Zohran Mamdani is pressing Gov. Kathy Hochul for state approval of tax hikes on wealthy residents and corporations to fund his progressive agenda, including free child care and bus service, amid a growing budget gap. Gov. Hochul has released a modest no-income-tax-increase budget with minor revenue measures like taxing nicotine products, downplaying differences while citing past state aid to the city and expected financial sector gains. |
| Pennsylvania | Legislation: "PA Fair Share Tax (H.B. 1773) | No | Pennsylvania has no state‑level wealth tax; proposals such as the “PA Fair Share Tax” focus on higher income‑tax rates on the wealthy and have not advanced in the legislative process, facing concerns about capital flight and administrative complexity. | N/A |
| Vermont | Legislation: H. 827 | No | Vermont does not currently have a general state wealth tax, but legislators previously proposed bills and established study commissions to explore taxing unrealized capital gains or overall net worth for the very wealthy (those with over $10M in assets) as a way to close wealth gaps and generate revenue, though no such broad tax is currently enacted, with recent activity focusing on legislative study commissions, like one established in 2024 to report by 2027. | N/A |
| Connecticut | Legislation: The Mansion Tax | No | Connecticut does not impose a general net‑worth tax on assets like stocks, bonds, or real estate, but it has a relatively high estate tax and has debated proposals such as a “mansion tax” and other wealth‑oriented measures. Wealth‑tax bills introduced around 2023–2024, including higher taxes on high‑income investment earnings, did not pass, and policymakers continue to explore broader tax‑system changes. | Prior proposal not enacted. |
| Updated | January 26, 2026 |