California’s 2026 budget adds a new software sales tax and extends the Medi-Cal health care tax. Critics call it the largest tax increase in state history, with higher costs expected for consumers and businesses.

In a surprise Capitol compromise, California lawmakers and the Howard Jarvis Taxpayers Association (HJTA) have reached a tentative agreement that could remove one of the state’s biggest ballot battles while preserving the two-thirds voter approval requirement for future local special taxes. HJTA President Jon Coupal confirmed he plans to withdraw the Local Taxpayer Protection Act (LTPA) from the November ballot if the Legislature places a constitutional amendment before voter