The Retirement & Personal Savings Protection Act is a statewide ballot measure that prohibits new taxes on retirement accounts, savings accounts, and other personal property. It also prevents retroactive taxes, so that politicians can’t unfairly change the rules and send people surprise tax bills they cannot afford.
The measure is slated for the November 2026 ballot.
California is the third most expensive state for retirees, with the average Californian needing roughly $2 million in savings to retire. Our state’s affordability crisis and high taxes already make it difficult for people to get ahead or to save enough for retirement.
Californians deserve peace of mind that their hard-earned savings will be there when they need them. The Act delivers that certainty by protecting retirement, life savings and personal property from new taxes.
Yes. There have been multiple attempts in recent years by the Legislature to tax savings and personal assets including pensions and 401(k)s. History has shown that some taxes that started out targeting higher income brackets ultimately ended up being pushed down the economic ladder, or started out temporarily and became permanent. The federal income tax began as a narrow “class tax” on the wealthy and now impacts the working and middle class.
Californians cannot afford to wait for a new retirement tax to become law before taking action. Once a precedent is set, it’s difficult to undo. This Act ensures retirements and personal savings are protected now.
Personal property includes retirement accounts, savings accounts, stocks, bonds, pensions, 401(k)s, and intellectual property as well as physical items such as furniture, appliances, and vehicles.
No. This measure was carefully crafted to only prohibit new taxes on retirements, savings and personal property, and to prohibit retroactive taxes. That means that existing funding for schools, public safety, roads, healthcare, etc. is untouched by this measure.
Existing personal property taxes in effect on or before December 31, 2025 - including any built-in rate or inflation adjustments already in law – will continue unchanged.
After January 1, 2026, the state may not adopt new or expanded taxes on personal property. This allows existing taxes to continue while achieving the measure’s objective of protecting retirements, savings, and personal property going forward.
The prohibition on retroactive taxes is about fairness for Californians and ensuring they can plan for their future. The state should not be able to pass taxes that apply retroactively to money that Californians saved in the past.
Seniors nearing retirement can’t go back in time and readjust their retirement planning because the state has imposed a retroactive tax or retroactive tax increase.
The state’s ability to raise other taxes, such as sales and use taxes, excise taxes, income taxes, and corporation taxes, is unaffected. So long a new tax is not imposed on personal property and is not retroactive, nothing changes. But the state shouldn’t be allowed to change the rules after the fact. Planning for retirement in California is hard enough without having to contend with the unpredictability of retroactive tax hikes.
This measure protects everyone from new taxes on their personal property regardless of income. It ensures that retirement savings and life savings that people work hard to build are there when they need them most. And, it protects people from retroactive taxes they can’t afford.