In the November 2026 elections, voters in 17 states will decide on roughly 40 tax‑related ballot measures. The proposals range from increasing taxes on high‑income earners and instituting wealth taxes, to enshrining low tax rates in state constitutions and, in Missouri, creating a fund that could eventually replace all state taxes.
Key measures to watch
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Missouri – A statewide initiative would establish a permanent fund financed by a dedicated revenue stream. Proponents argue the fund could one day eliminate the need for traditional state taxes, though details on funding sources and timelines are still being debated.
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California – Two separate measures address wealth taxation:
- A wealth tax that would levy a rate on the net assets of high‑net‑worth individuals. The definition of “wealth” and the tax base vary, influencing the potential revenue impact.
- A related Billionaire Tax Act proposal, also targeting the assets of the state’s richest residents.
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Colorado – Voters will consider an income‑tax amendment (Proposition 136) that would give the electorate the power to approve or reject any future changes to the state’s income‑tax rates.
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Property‑tax relief – Several states are proposing reforms to how property taxes are assessed and passed on to homeowners, aiming to reduce the burden on residential property owners while preserving funding for schools, roads, and public safety.
Common themes
- Progressive taxation – A number of measures seek to raise rates on top earners or introduce wealth taxes, reflecting a push for more progressive revenue structures.
- Tax‑rate caps – Conversely, some initiatives aim to lock low tax rates into state constitutions, limiting future legislative ability to raise taxes.
- Funding reforms – Proposals such as Missouri’s fund illustrate a trend toward exploring alternative revenue mechanisms that could replace traditional tax collections.
Considerations for voters
- Revenue projections – Estimates of how much additional revenue a wealth or income‑tax amendment would generate often depend on assumptions about asset valuations and compliance rates.
- Economic impact – Higher taxes on high‑income individuals may affect migration patterns, investment decisions, and overall economic activity within a state.
- Constitutional changes – Embedding tax rates in a state constitution can make future fiscal flexibility more difficult, potentially constraining budget responses to economic downturns.
- Implementation details – Many proposals lack fully defined mechanisms for collection, enforcement, or allocation of new funds, leaving uncertainties about their practical effect.
These ballot measures illustrate the divergent approaches states are taking to address fiscal needs and equity concerns ahead of the 2026 elections. Voters will need to weigh projected revenue benefits against potential economic and administrative consequences when casting their ballots.
Source article: taxfoundation.org
