California tax blitz in 2026 hits everyone – and it's only the start

Lawmakers and local officials want to unleash an avalanche of new taxes on Californians in 2026, slugging everyone from big and small business owners to everyday consumers.

Published on Feb. 13, 2026

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California lawmakers are planning a major tax push in 2026, with new taxes targeting businesses, landlords, and consumers across the state. This comes as the state's already high gas taxes are set to rise again in July. Critics argue the tax increases will drive jobs and investment out of the state, while supporters say the revenue is needed to address budget deficits and fund critical services.

Why it matters

California already has some of the highest taxes in the nation, and these proposed new taxes could further strain residents and businesses, potentially leading to an exodus of people and companies from the state. The tax increases are being framed as a way to address budget shortfalls, but critics argue the state's spending has grown faster than services have improved.

The details

The new tax proposals include a billionaire's tax, which has already led to an estimated trillion dollars in wealth fleeing the state, as well as new taxes on landlords with vacant properties and businesses. In Los Angeles, county supervisors are pushing for another half-cent sales tax increase, on top of a recent tax hike for homelessness services. Meanwhile, California's gas taxes, already the highest in the nation, are set to rise again in July due to a 2017 law that ties increases to inflation.

  • California's gas tax will increase again on July 1, 2026.
  • Lawmakers and local officials are crafting new tax proposals for 2026.

The players

Gavin Newsom

The governor of California who has argued in the past that California taxes are not that high, despite the state's budget increasing by $150 billion since he took office in 2019.

Jared Walczak

A senior fellow at the Tax Foundation who said the overall picture in California is one of high taxation and taxes that don't exist in other states.

Dave Kline

A spokesperson for the California Taxpayers Association who said a wider variety of taxes are being introduced, particularly at the state level.

Jon Coupal

The president of the Howard Jarvis Taxpayers Association who said any skepticism voters have in regards to state and local government is justified.

Kathryn Barger

The lone dissenting vote on the Los Angeles County Board of Supervisors who noted her reluctance to increase taxes due to past mismanagement of funds related to a sales tax increase for homelessness services.

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What they’re saying

“The overall picture is one of high taxation and taxes that don't exist in other states.”

— Jared Walczak, senior fellow at the Tax Foundation (nypost.com)

“Any skepticism voters have in regards to state and local government is justified.”

— Jon Coupal, president of the Howard Jarvis Taxpayers Association (nypost.com)

“We are not, as a whole, credible when it comes to promises made, promises broken.”

— Kathryn Barger, Los Angeles County Supervisor (Los Angeles Times)

What’s next

The judge in the case will decide on Tuesday whether or not to allow Walker Reed Quinn out on bail.

The takeaway

This case highlights growing concerns in the community about repeat offenders released on bail, raising questions about bail reform, public safety on SF streets, and if any special laws to govern autonomous vehicles in residential and commercial areas.