California voters will decide in November 2026 whether to make permanent the high-earner income tax surcharge originally approved under Proposition 30 in 2012 and extended through 2030 by Proposition 55. The measure, known as Proposition 3, locks in rates up to 12.3% on income above roughly $360,000 for individuals and $721,000 for couples, directing the resulting $5–15 billion annually primarily to K-12 schools and community colleges. It qualified for the ballot in June 2026 with strong backing from the California Teachers Association and allied education groups. Traders assign the “yes” side a 66% implied probability amid consistent past voter support for extensions, ongoing dependence on these revenues for education funding, and competing tax-related measures on the same ballot, offset by opposition focused on long-term economic effects and high-income migration.