The Millionaire Tax Movement Is Growing — Here’s Where It Stands
Millionaire taxes are having a moment again.
Across the country, states are debating whether high earners, luxury property owners, second-home buyers, and billionaires should pay more to fund schools, transportation, healthcare, housing, and budget gaps. Some proposals are already law. Others are headed toward ballots. A few have stalled.
Here’s a clean national roundup of where the biggest millionaire-tax and wealth-tax conversations stand right now.
California: Billionaire Tax Headed Toward the Ballot
California’s proposal is one of the most aggressive in the country. Backers of the 2026 Billionaire Tax Act say they have gathered enough signatures to place a one-time 5% wealth tax on the November 2026 ballot. The measure would apply to individuals with a net worth over $1 billion and could raise “tens of billions” or more, largely for healthcare programs. Supporters say the revenue is needed to offset federal funding cuts; critics, including Gov. Gavin Newsom and several major tech figures, warn it could push wealthy residents out of the state.
Maine: Millionaire Tax Signed Into Law
Maine has moved from proposal to law. In April of this year, Gov. Janet Mills signed a budget package that includes a new 2% surcharge on individual income over $1 million. For joint filers and heads of household, the threshold is $1.5 million. The tax is retroactive to January 1, 2026, and supporters say it will raise nearly $100 million in its first year while helping fund public programs.
Illinois: Millionaire Tax Proposal Stalls
Illinois’ latest millionaire-tax push appears to be off the table for now. A proposed constitutional amendment would have allowed voters to consider an additional 3% tax on income over $1 million, but it failed to gain enough support in the Illinois House and has been shot down (at least for now). This development makes it unlikely voters will see the measure on the November 2026 ballot.
New York: Pied-à-Terre Tax Takes Aim at Luxury Second Homes
New York’s biggest current debate is less about income and more about luxury real estate. Gov. Kathy Hochul has proposed a pied-à-terre tax on second homes in New York City valued at $5 million or more. The proposal would allow the city to levy an annual surcharge on ultrawealthy nonresident owners and is expected to generate significant revenue if approved. Supporters frame it as a way to tax luxury properties used as investment vehicles; critics warn it could trigger lawsuits and create valuation disputes.
Washington: New Millionaires Tax Signed, But Legal Fight Expected
Washington state, long known for having no traditional state income tax, has enacted a new 9.9% tax on income above $1 million. Gov. Bob Ferguson signed the measure in March 2026, and the tax is set to take effect in 2028. Supporters say it will help fund public services and rebalance the state’s tax code. Opponents have already filed legal challenges, arguing that Washington’s constitution treats income as property and limits such taxation.
Massachusetts: Existing Millionaire Surtax Remains a National Test Case
Massachusetts already has one of the country’s most closely watched millionaire taxes. Since tax year 2023, the state has imposed an additional 4% surtax on taxable income above the annual threshold, with revenue dedicated to education and transportation. Collections have been significant, but debate continues over whether the surtax is affecting migration among high earners.
Oregon: Wealth Tax Could Go to Voters
Oregon may become one of the next states to put a wealth tax before voters. A proposed initiative, called The Very Rich Pay Their Fair Share Act, would tax assets such as property, stock options, bonds, and business interests held by the state’s wealthiest residents. Backers are working to qualify the measure for the November 2026 ballot.
Vermont: Lawmakers Weigh Higher Top Tax Rates
Vermont lawmakers are considering new tax increases on the highest earners. One proposal would create a new top income tax bracket for the top 1% of households, with a rate as high as 13.3% on income above roughly $586,000 for joint filers. If enacted, Vermont’s top rate would be among the highest in the nation.
Connecticut: Advocates Push Billionaire Tax Ideas
Connecticut has not enacted a new millionaire or billionaire tax this year, but advocates are pushing for one in the near future. On Tax Day, protesters dressed as Mr. Monopoly delivered petitions calling for a billionaire tax and broader tax reform. Separately, progressive lawmakers have floated proposals to raise top income tax rates and target high-value property or wealth.
Maryland: Billionaire Wealth Tax Introduced
Maryland lawmakers have also considered a wealth-tax-style proposal. House Bill 1238 would establish a one-time tax on resident net worth above $1 billion, with proceeds directed to a new state investment and stabilization fund. As of the latest fiscal note, the proposal remains in the legislative process rather than enacted law.
Rhode Island: “Taylor Swift Tax” on Luxury Second Homes
Rhode Island has enacted a high-end property surcharge often nicknamed the “Taylor Swift Tax” thanks to the star’s vacation home in Newport. Beginning July 1, 2026, the state will impose a 0.5% annual surcharge on the portion of assessed value above $1 million for certain non-owner-occupied residential properties used fewer than 183 days a year. Primary residences and properties rented for more than 183 days are exempt.
New Jersey: Mansion Tax Already Expanded
New Jersey’s millionaire-tax conversation is already baked into real estate. The state expanded its mansion tax structure in 2025, replacing the flat 1% tax on sales over $1 million with a tiered system. Sales over $3.5 million are now taxed at 3.5%, with intermediate rates for transactions between $2 million and $3.5 million.
Hawaii: High-End Property and Tax Hikes Debated, Many Stalled
Hawaii lawmakers considered multiple tax proposals in 2026, including taxes on real estate, capital gains, and high-value homes. Hawaiʻi County also floated higher property taxes on homes valued above $4 million to fund housing and homelessness programs. However, several state-level tax hikes stalled in the Senate.
Federal Level: Ultra-Millionaire Tax Reintroduced
At the federal level, Sen. Elizabeth Warren and other lawmakers renewed a push for the Ultra-Millionaire Tax Act. The proposal would impose a 2% annual tax on household net worth over $50 million, plus an additional 1% surtax on net worth above $1 billion. Like many federal wealth tax proposals, it faces steep political hurdles, but it remains part of the national debate.
The “millionaire tax” label now covers a wide range of policies:
Income surtaxes
Wealth taxes
Mansion taxes
Second-home taxes
Luxury property surcharges
Some are already law, like Maine’s new surcharge, Massachusetts’ existing Fair Share surtax, Washington’s new tax, and Rhode Island’s second-home surcharge. Others — like California’s billionaire tax, Oregon’s proposed wealth tax, and New York’s pied-à-terre tax — are still moving through ballots, legislatures, or political negotiations.
For taxpayers, the lesson is simple: high-income and high-asset tax policy is changing quickly, and the impact depends heavily on where you live, what you earn, and what you own.
State tax policy can change quickly. This article is current on the date of publication, April 29, 2026.