California voters will decide in November 2026 whether to permanently extend the high-earner income tax surcharge originally approved in Proposition 30 and extended by Proposition 55, which applies to individuals above roughly $360,000 and couples above $721,000 and raises $5–15 billion annually for K-12 schools and community colleges. The measure, backed by the California Teachers Association and other education groups, qualified for the ballot in June after the surcharge’s scheduled 2031 sunset. Trader sentiment remains closely balanced because the tax has passed twice before yet faces longstanding opposition over revenue volatility, potential migration of high-income residents, and competition from a separate billionaire wealth-tax initiative also on the ballot. Upcoming campaign spending, economic conditions through fall, and turnout among education and business constituencies will likely determine the outcome.