State Wealth Tax Tracker
| 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+ | A new group called Building a Better California, funded with at least $35 million from Sergey Brin and other tech leaders, is backing three ballot measures that would curb or complicate the wealth tax ballot initiative. The organization, which also supports housing and affordability initiatives, hasn’t formally opposed the wealth-tax measure but is promoting its accountability-focused alternatives as both sides race to collect enough signatures for the November ballot. 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. Additionally, 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: Market-to-Market Tax Act (S.B. 3376) Extremely High Wealth Mark-to-Market Tax Act (H.B. 3039, 2023-2024) | No | The proposal would apply a mark-to-market regime to tax annual unrealized gains of residents with net assets over $1 billion. It faces substantial legal challenges due to Illinois’ constitutional flat-tax requirement. | 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 | 2026 Legislation: Millionaire Tax (S.B. 6346) 2023: Legislation: S.B. 5486 / H.B. 1473 (2023) | No | 2026: The bill would establish a 9.9% tax on annual net income over $1 million in 2029. The Senate Ways and Means Committee made changes to the bill to exempt firms with gross revenues of $300,000 or less from the state business and occupation tax. It would also provide some relief for businesses with gross income up to $600,000. It would also double the charitable deduction to $100,000 and add a deduction for commercial fishing firms. The 2023 wealth tax proposal was stalled and not 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. | 2026: Passed the Senate chamber. It is now in the House for consideration. 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. 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. |
| Washington | 2026 Legislation: Repealing the Estate Tax (S.B. 6347) | Yes; If the value of an estate exceeds $2.193 million, that amount is taxed. The first $2.193 million is excluded from taxes. | The bill would roll back Washington’s last year's estate tax increases by undoing changes that raised rates and altered the structure of the tax on large estates. | 2026: Passed the Senate chamber. It is now in the House for consideration. |
| Virginia | Legislation: Millionaire Tax (H.B. 188) | No | The bill would create a new income tax bracket beginning in taxable year 2026, that would tax income in excess of $1 million at a rate of 10%. 50% of the revenue would help fund public schools, 30% would be dedicated to the Child Care Subsidy Program, and 20% would be dedicated to the Virginia Housing Trust Fund. | In Committee |
| Virginia | Legislation: Standard Deduction; Tax Bracket Changes (H.B. 979) | No | The bill would establish two new tax brackets beginning on and after January 1, 2027, that would tax income in excess of $600,000 but not in excess of $1,000,000 at a rate of 8% and income in excess of $1,000,000 at a rate of 10%. 50% of revenue generated by the new tax brackets would be dedicated to localities for maintenance, operation, capital outlays, debt and interest payments, or other expenses incurred in the operation of public schools. | In Committee |
| Virginia | Legislation: Net investment income Tax (H.B. 378) | No | The bill would impose a net investment income tax on individuals, trusts, and estates beginning in taxable year 2027. The tax is generally equal to 3.8% of the lesser of net investment income, defined in the bill, for the taxable year or federal modified adjusted gross income, defined in the bill, for such taxable year reduced by $500,000. | In Committee |
| Updated | February 18, 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 | February 18, 2026 |
Wealth Tax News
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Coverage of wealth taxes this week frames California’s wealth tax push as both a healthcare-funding response and a broader ideological fight over causes and consequences-from claims that inflation and long-run dollar devaluation fuel resentment toward billionaires to...
Building on last week’s divide, the California debate has sharpened around the mechanics and consequences of the proposed one‑time 5% wealth tax on billionaires. Rep. Ro Khanna (D-CA) is pushing for a compromise amid backlash from industry leaders like Sergey Brin and...