California voters will decide in November 2026 whether to make the state's top marginal income tax rates on high earners permanent through Proposition 3, extending the structure first approved in 2012 and extended via Proposition 55 until 2031. The measure would lock in rates from 10.3% to 12.3% for individuals above roughly $360,000-$721,000, directing the bulk of the $5–15 billion in annual revenue to K–12 schools and community colleges. The proposition qualified for the ballot in June 2026 with substantial early support funding, building on repeated voter backing for the existing surcharge while facing opposition tied to concerns over tax permanence, revenue stability, and effects on high-income migration and investment. This backdrop supports the current trader consensus reflected in the 58.5% implied probability for approval.