State Wealth Tax Tracker
Interest in Wealth Tax proposals is growing. With the chart below, stay on top of all the latest state-by-state Wealth Tax news that may affect family-owned businesses. This chart updates as state legislatures introduce new proposals and bills or change existing ones.
| State | Legislation/Ballot Initiative | Existing Surtax/Special Bracket(s) for 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. | 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. On Feb. 26 California's Secretary of State released that 25% of the required signatures had been reached. The California Secretary of State recommended that signature counts be submitted by April 17, but as of yet, no additional official count information has been released. Gov. Gavin Newsom (D) said he will not sign a wealth tax bill and is actively working against the proposed ballot initiative. He argued that one state imposing a wealth tax is impractical when the wealthy can move to another state. Rep. Kevin Kiley (R-CA) gave a speech on the (U. S) House floor opposing the proposal. Rep. Ro Khanna (D-CA) also voiced support for the proposal, stating that billionaires can pay a modest wealth tax to provide Californians Medicaid. 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), former Rep. Eric Swalwell (D-CA) and former Rep. Katie Porter (D-CA). |
| Colorado | Ballot Initiative: 2026 Graduated Income Tax | No | The measure would eliminate Colorado’s flat (4.4%) income tax rate in favor of a tiered system that would generally reduce taxes for some of the state’s lowest earners, while increasing taxes on those making $500,000 or more annually. | Collecting Signatures |
| Hawaii | Legislation: H.B.2306 - RELATING TO INCOME TAX | No | For taxable years beginning after 12/31/2026, increases the income tax rates for the three highest income tax brackets by one percentage point each. Increases a taxpayer's applicable percentage of employment-related expenses that is used to calculate the household and dependent care services tax credit. | Passed in the House. Referred to Senate Ways and Means Committee |
| 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+ | Hawaii State Senate Committee on Judiciary passed the bill. Referred to the Hawaii Senate Committee on Ways and Means. |
| Hawaii | Legislation: S.B. 2468 | No | The bill would establish a 2% surcharge on taxable income exceeding $1,000,000 to provide funding, if approved by the Legislature, for the State Medicaid Program. | In Committee |
| Hawaii | Legislation: H.B. 2522 | No | The proposed bill would eliminate the state income tax starting with the 2028 taxable year. | In Committee |
| Hawaii | Legislation: S.B. 2587 | No | The bill would increase Hawaii's capital gains tax rates to 9% for individuals, estates, and trusts, and to 5% for corporations, effective July 1, 2026. | In Committee |
| Illinois | Legislation: HJRCA0026 | No | The bill would amend the state constitution and impose a surtax of 3% tax on annual income over $1 million. The bill is currently in the Illinois state House, and if adopted by both chambers, would be put on a general election ballot six months after adoption. If voters approve of the resolution, it would require the state General Assembly to implement the constitutional amendment. | In Committee |
| Illinois | Legislation: Market-to-Market Tax Act (S.B. 3376) | 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. | Referred to Assignments |
| Illinois | Legislation: S.B.3847: Estate Tax-Exclusion Amount | No | The bill would raise the estate tax exclusion to $8 million starting in 2027, with future inflation adjustments and alignment with federal estate tax provisions. | Referred to Assignments |
| Louisiana | Legislation: H.B.253: Tax/Income Tax | No | The bill would repeal the state tax levied on the net income of individuals and estates and trusts. | In Committee |
| Maine | Legislation: Proposed 2% surtax on income over $1 million in state spending plan | No | The bill would impose a 2% surtax on earnings over $1 million ($750,000 for married persons filing separately). | Signed into Law |
| Maryland | Legislation: H.B.1238: Taxation - Ultra-High-Net-Worth Individual Surtax and Wealth Tax | No | The bill would impose a surtax on individuals with a net worth in excess of $1,000,000,000. | In Committee |
| Maryland | Legislation: S.B.0211: Maryland Estate Tax - Repeal | No | The bill would eliminate the estate tax and effective after June 30, 2026. | In Committee |
| Massachusetts | Legislation: S.2088: An Act relative to modernizing the estate tax | Yes – 4% tax on income over $1 million | The bill would exempt estates valued at $5,000,000 or less from taxation. | In Committee |
| Michigan | Ballot Initiative: Invest in MI Kids | No | The initiative proposed 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. | Proposal pulled from 2026 ballot. |
| Minnesota | Legislation: S.F.4469 - taxable estate amount increased exclusion provision | Yes - 1% on net investment income exceeding $1 million | The bill would increase the estate tax exclusion amount from $3,000,000 to $4,000,000 for estates of decedents dying after December 31, 2025 | In Committee |
| Minnesota | Legislation: S.F.953: Estate tax ten-year phaseout provision | Yes - 1% on net investment income exceeding $1 million | The bill would increase the current estate tax brackets and requires a 1.6% reduction until tax rate equals zero. | In Committee |
| Minnesota | Legislation: S.F.2253 | Yes - 1% on net investment income exceeding $1 million | The bill would require that an estate tax return must be filed when the sum of the federal gross estate and federal adjusted taxable gifts exceeds $6 million (an increase from $3 million). | In Committee |
| Minnesota | Legislation: S.F.3818 - Estate tax repeal | Yes - 1% on net investment income exceeding $1 million | The bill would repeal the estate tax. | In Committee |
| Minnesota | Legislation: H.F. 2591 - Protect Medicaid, Not Millionaires Act | Yes - 1% on net investment income exceeding $1 million | The bill would establish a new fifth tier in Minnesota’s individual income tax structure, imposing a surtax rate on income over $1 million at a level sufficient to offset any lost federal Medicaid funding due to changes enacted in the OBBBA. | In Committee |
| Minnesota | Legislation: H.F. 4616 | Yes - 1% on net investment income exceeding $1 million | The bill would impose a wealth tax on 1% of taxable wealth of an individual or trust in excess of $10,000,000. | In Committee |
| New York | Legislation: A3632 | Yes - 9.65% for incomes over $2.1 million, 10.3% for incomes over $5 million to $ 25 million, and 10.9% for incomes over $25 million. In 2032, incomes over $1.1 million will revert back to 8.82%. | The bill would impose a tax on unrealized gains of individuals with net assets of one billion dollars or more. As introduced, the bill would apply to gains as of December 31, 2024, with any result tax paid in full for the 2025 tax year or in ten equal annual installments, subject to a non-deductible deferral charge. The legislation defines "assets" broadly, including real and personal property, and outlines specific asset categories for reporting purposes. | In Committee |
| Oregon | Legislation: S.B.1511 | Yes - graduated rate ranging from 10-16% for estates valued over $1 million. | The bill would increase the estate tax exemption to a $2.5 million deduction, adjust tax rates and filing thresholds, and index these amounts for inflation, applying to estates of decedents dying on or after January 1, 2027. | Passed the Senate. Sent to the House. |
| Rhode Island | Legislation: H.B. 7595/S.B.2361: An Act Relating to Taxation--Wealth Tax | No | This bill would establish a 1% wealth tax on Rhode Island residents' worldwide intangible assets above $25 million, with detailed compliance, exemption, and enforcement provisions, effective for tax years beginning in 2027. | In Committee |
| 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: H.B. 2019: Making the Estate Tax More Progressive | No | The bill would revise the state's estate tax by increasing the exclusion amount to $3,000,000 and adjusting tax rates for estates of decedents dying on or after January 1, 2025, with immediate effect. | In Committee |
| Washington | Legislation: S.B. 5797: Enacting a tax on stocks, etc. | No | This bill would enact a tax on stocks, bonds, and other financial intangible assets for the benefits of public schools. | In Committee |
| Washington | Legislation: Millionaire Tax (S.B. 6346) | No | The bill would add a new state income tax for individuals with a 9.9% tax on annual net income over $1 million starting in 2029. | Signed into Law. Effective 6/11/2026. The Citizen Action Defense Fund announced plans to sue, arguing it is unconstitutional and conflicts with Washington state Supreme Court precedent set in 1933. |
| Washington | Legislation: Repealing the Estate Tax (S.B. 6347) | Yes - Applies to estates valued in excess of $2.193 million. | The bill would roll back estate tax increases enacted in 2025, by undoing changes that increased and graduated the tax rate. | Signed into Law. Effective 6/11/2026. |
| Vermont | Legislation: H.620 - An act relating to creating a wealth tax commission | No | The bill would establish a commission to study and report on the feasibility and implementation of a wealth tax in Vermont, including coordination with other states, with $125,000 appropriated for its work and a final report due by November 1, 2027. | In Committee |
| 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% (current flat rate is 5.75%). 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 | April 21, 2026 |
Previous Proposals
| State | Legislation/Ballot Initiative | Existing Surtax/Special Bracket(s) for 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. As of April 2026, Governor Kathy Hochul and Mayor Zohran Mamdani are advancing a pied-à-terre tax targeting luxury second homes in New York City valued over $5 million. | 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. | N/A |
| 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 increasing its “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. |
| Oregon | Legislation: H.B. 2713: Imposes a surtax on personal income tax liability | No | The legislative text introduces new tax measures and establishes funds aimed at enhancing Oregon's disaster preparedness. It would impose a surtax on personal income tax liabilities and an alternative minimum tax for high-income earners, directing the proceeds to the newly created Resiliency Requirements Fund and Shaky Day Fund. | Referred to House Committee in 2025. |
| Updated | April 21, 2026 |