California

Proposition 40, California’s proposed billionaire tax, is a one-time 5 percent levy that addresses a significant one-time emergency, namely the cuts made to the healthcare system by the so-called “One Big Beautiful Bill Act.”

Nearly two-thirds of states (plus the District of Columbia and Puerto Rico) have an Earned Income Tax Credit. These credits boost low-paid workers’ incomes and offset some of the taxes they pay, helping working class families achieve greater economic security.

Sixteen states provide Child Tax Credits to reduce poverty, boost economic security, and invest in children. State lawmakers have several options to maximize the impact of Child Tax Credits.

This fall, voters across the country will consider a host of ballot measures that could reshape the fairness and adequacy of their states’ tax systems. Here’s some of what we’re following.

Below is a list of tax expenditure reports published in the states.

It's the first official week of summer, and while many of us are planning vacations, state lawmakers remain busy finalizing and debating tax proposals.

From surcharges on the income of high-earners to higher taxes on second homes, here are recent steps states have taken to tax the rich.

The effects of last year’s federal tax and spending cuts continue to ripple through the states. With gas prices soaring due to the Iran war, some states are attempting to provide a bit of relief in the form of gas tax reductions and suspensions.

This week Hawaiʻi lawmakers reached a compromise to balance the state budget and maintain tax cuts for most residents by, in part, raising rates on the richest Hawaiians. Other states are working to generate revenue from their wealthiest residents, too.

ITEP cited in testimony in favor of a California policy that would close a profit shifting loophole and ensure that corporations pay their fair share. Read more.

States continue to debate whether and how to link their state tax codes to the 2025 federal tax law. This is not just a technical debate.

Policymakers in Maine and Oregon wisely said “no” last week to an income tax break for deep-pocketed tech investors and venture capitalists that was expanded in last year’s federal tax bill.

ITEP tracks tax discussions in legislatures across the country and uses our unique data capacity to analyze the revenue, distributional, and racial and ethnic impacts of many of these proposals. State Tax Watch offers the latest news and movement from each state.

California Gov. Gavin Newsom went to Texas recently and claimed: “Texas taxes poor folks more than we tax our richest." He’s right.

Several large corporations pay next to nothing in corporate taxes in California, largely due to overly generous state tax breaks. Reforming the state’s corporate tax system is a necessary step to support the health and well-being of Californians and strengthen economic security for all. Read more.

Undocumented immigrants contributed $8.5 billion in state and local taxes in 2022 — a number that would rise to $10.3 billion if these taxpayers could apply to work lawfully. People are afraid to leave their homes, children are left without their parents, and families unable to afford groceries. Families are even foregoing critical medical care. […]

Trust use is widespread among the wealthiest households, with reports showing that roughly half of the nation’s wealthiest people rely on trusts for tax avoidance reasons

Most states are adopting a very cautious approach so far this year as legislators begin their sessions and governors make their annual addresses, thanks to ongoing economic uncertainty and federal retrenchment.

They should take steps to protect and boost their own revenues. And they should take a second look at their own tax cuts.

2025 saw an intensification of state and local tax fights across the country, as well as growing experimentation with local-option taxes, levies, fees, and tourism taxes aimed at keeping budgets afloat while also navigating political constraints imposed by state legislatures.

State governors are beginning to lay out their top priorities as legislatures reconvene in statehouses around the country.

This provision in last summer’s tax law could actually make budget-balancing a little bit easier for states if they follow suit.

As we kick off a new year, several states are facing revenue shortfalls. Some lawmakers are approaching the challenge with sustainable and equitable solutions.