What to know about California’s proposed ‘Billionaire Tax’ — and the moguls fleeing to dodge it

California’s proposed 2026 Billionaire Tax Act could appear on the state’s November 2026 ballot and would impose a onetime tax on its wealthiest residents.

The measure would slap the 5% tax on individual fortunes exceeding $1 billion — and be applied retroactively to residents in the state as of Jan. 1, 2026.

That looming deadline is giving California’s roughly 2015 billionaires a limited opportunity to change their tax residency.

The tax would cover worldwide assets such as businesses, stocks, bonds, art, collectibles and intellectual property, but would exclude directly held real estate, pensions and retirement accounts. Individuals who are California residents as of January 1, 2026, would be subject to the tax even if they move out of state before the election.

The Service Employees International Union-United Healthcare Workers West, which is backing the bill, said the proposed start date was to ensure that the billionaires “can’t avoid responsibility by moving their assets or claiming residency elsewhere” just to dodge it.

The union says the funding is needed to close a federal budget gap hitting crucial state services such as healthcare.

But critics argue that the tax targets unrealized gains, or “paper wealth,” and may force some residents to sell assets to pay it. Taxpayers can pay the full amount at once or in 5-year installments with interest, offering flexibility for those facing liquidity challenges.

Several billionaire ballers have already scooped up tony properties in other states and even moved some of their businesses in search of friendlier horizons. They include:

Larry Page

The Google co-founder had more than 45 California LLCs tied to him recently file to go inactive or relocate out of state — as a trust linked to him snapped up a $101.5 million waterfront estate and another $71.9 million mansion in Miami’s exclusive Coconut Grove.

Sergey Brin

Page’s Google co-founder is currently shopping for a Miami waterfront home after 15 limited liability companies overseeing his investments and interests were terminated in California or converted into Reno, Nev., entities.

Peter Thiel

The co-founder of PayPal and Palantir Technologies recently opened an office in the Sunshine State after purchasing a Miami Beach mansion in 2020 and registering to vote in the state.

David Sacks

The White House AI and crypto czar and Craft co-founder publicly announced his move to Austin, Texas, on New Year’s Eve.

Lynsi Snyder

The In N Out heiress relocated her family and established a second corporate office in Franklin, Tenn. She clarified that the wildly popular burger chain’s corporate headquarters will remain in California, with plans to consolidate operations and close the Irvine office by 2030.

Whether California voters will greenlight the measure, if it even gets enough signatures to get on the ballow, remains uncertain. Tax hikes on state ballots have a checkered past, and Gov. Gavin Newsom is already rallying opposition.