California Voters Approve Prop 42 to Protect Retirement and Property

Personal property and retirement accounts gained constitutional protection from future wealth taxes on Nov. 3, 2026, when voters approved Proposition 42, the Sacramento Bee reported.

New Hurdles for Wealth Taxes

The ballot measure won roughly 51.7% of the vote compared to 48.3% opposing it, according to preliminary results at 5:48 p.m. Friday.

The initiative arrived on the ballot alongside a defeated, one-time 5% levy on billionaires known as Proposition 40. Building a Better California, a committee funded by Google co-founder Sergey Brin and other critics of Prop. 40, poured a combined $229 million into Prop. 42 and its companion measure, Prop. 41, which was abandoned in September.

Backers Defend Retirement Savings

Supporters argued the amendment shields everyday workers from future tax policy shifts. Trade groups and public safety unions heavily backed the campaign.

“California voters stood up and said that money belongs to the workers who saved it.”

said Chris Hannan, president of the State Building and Construction Trades Council of California, in a statement sent by the committee. Hannan added that union members earn their retirement one paycheck at a time.

Abby Lunardini, a spokesperson for the backing committee, said that lawmakers in Sacramento had previously floated similar revenue ideas. Those past efforts included AB 259 in 2023, a legislative proposal designed to target ultra-wealthy residents.

“As Californians face rising costs, the stakes for this long-term protection could not be higher,” Lunardini told the Sacramento Bee.

Future Battles in 2028

Leaders at SEIU-United Healthcare Workers West plan to advance another tax proposal targeting ultra-wealthy residents in 2028 if the Legislature and Gov.-elect Xavier Becerra fail to enact alternative measures to offset federal healthcare funding cuts.

Any future push by the union would require a separate constitutional amendment to void Proposition 42’s restrictions, or a legal workaround to bypass its ban on retroactive taxation.

“The billionaires behind Prop 42 do not care about protecting Californians’ retirement savings,” Suzanne Jimenez, chief of staff for SEIU-UHW, said in a statement.

Jimenez added that the outcome will not stop demands for accessible healthcare and financial accountability from wealthy earners.