California Tax Foundation: 67 Tax and Fee Hikes Approved in 2025–26 Session Would Add $14.3 Billion a Year
Sacramento — Lawmakers and Governor Gavin Newsom approved 67 tax and fee increases during California's 2025–2026 two-year legislative session that would add $14.3 billion a year in taxes and fees once fully implemented, according to a report released by the California Tax Foundation and first reported by the New York Post on October 20.
The largest item is a sales tax on digital software (SB 122, a trailer bill to the 2026 Budget Act signed into law on June 29), followed by a tax on health insurance plans. "When all of the new taxes and fees approved this session are fully implemented, Californians will pay an additional $14.3 billion each year to state and local governments — and that doesn't even include additional tax increases that may be approved by voters in the November election," said Caitlin Herring, a research analyst at the foundation. "These increased costs will contribute to the state's high cost of living as a new governor takes office and tackles California's persistent affordability challenges." The foundation's rough estimate works out to about $1,000 per household per year, though it cautions that most of the levies target specific taxpayers and businesses.
Californians already pay the nation's highest gasoline tax, the highest statewide base sales tax rate and the highest top marginal income tax rate. Newsom leaves office next January and is widely expected to run for president in 2028, and his tax record is likely to be contested on the campaign trail.
Published by GSM · USA (original Chinese edition)
Photo: 图：位于 Sacramento 的加州议会大厦。Steven Pavlov 摄，CC BY-SA 3.0，经维基共享资源。
