TITLE: US State Tax Ballot Results 2026: What They Mean for International Ecommerce Sellers
On November 3, 2026, voters in several US states decided tax measures that reach beyond their borders. If you sell into the United States from the UK or anywhere else, several of these results will shape state income tax and property tax rules over the coming years. None of them creates a new sales tax filing duty overnight, but they change the planning picture for foreign owners drawing income from US entities and for companies with US operations.
Election counts are still unofficial. States certify results on their own schedules, and California counties report through December 3, 2026, with the statewide Statement of Vote due December 11, 2026. Treat every figure below as preliminary until certification, and check each state’s official election site before you act.
What voters decided on state tax measures
California rejected the billionaire wealth tax. Proposition 40, a one-time 5% tax on net worth above $1 billion, was trailing with roughly 56% of voters opposed as results came in. Proposition 42, which makes it harder for the state to levy new taxes on wealth such as investment accounts or personal property, was passing with just over 54% in favor. If both had passed, the measure with more votes would have prevailed, and Prop 42 was leading. California’s existing tax rules therefore continue to apply to your business.
North Carolina capped its income tax in the constitution. Voters approved, with about 62% support, an amendment setting a maximum income tax rate of 3.5% for both individuals and corporations. Nothing changes immediately: the personal rate is already scheduled to fall from 3.99% to 3.49% in 2027, and the 2% corporate rate is set to phase toward zero. The cap simply blocks future legislatures from raising rates above 3.5% without another constitutional amendment.
North Carolina also approved a property tax levy limit. With about 60% support, voters authorized lawmakers to cap how much revenue local governments can raise from property taxes, tied to inflation and population growth. The legislature sets the details, likely in 2027. If you lease US warehouse space, watch this one: it shapes the local tax environment around your fulfillment centers.
Iowa locked in supermajority protection. Amendment 1 passed with about 56% of the vote. Raising individual or corporate income tax rates, or creating a new income tax, now requires a two-thirds vote in both legislative chambers.
Washington voters kept the new high-earner income tax. Initiative 645 would have repealed the 9.9% tax on individual income over $1 million, effective January 1, 2028, and banned state and local income taxes. It failed, so ESSB 6346 stays on the books. The tax applies to individuals, including nonresidents on their Washington-sourced income, and pass-through entities such as partnerships and LLCs can elect to pay it at the entity level. Late filing carries a penalty of 5% of the tax due per month, capped at 25% of the tax due.
Florida expanded homestead exemptions. Amendment 3 passed with about 62% of the vote, clearing the 60% threshold it needed. The homestead exemption for non-school property taxes rises to $150,000 in 2027 and $250,000 in 2028. Property tax burdens shift toward properties that do not qualify, which includes commercial and industrial real estate.
Oklahoma rejected tighter assessment caps. State Question 847, which would have reduced the annual cap on value increases for homestead and agricultural property from 3% to 1.75%, failed.
Colorado’s dueling income tax measures are too close to call. Amendment 87 would replace the 4.4% flat tax with six graduated brackets running from 3.7% to 8.4%, raising taxes on households and businesses earning more than $500,000 a year. Proposition 136 would cap the rate at 4.4% to block it. Both were within a few points with most votes counted. Do not plan around either outcome until the canvass and any conflict between the two measures are settled.
Why income tax results matter to cross-border sellers
State sales tax rules are unchanged by these votes. Your economic nexus thresholds, marketplace facilitator rules, and registration duties stay exactly where they were. What these measures affect is the income side of your US footprint.
If you own a US LLC or corporation, the Washington income tax, the North Carolina corporate cap, and a possible Colorado graduated structure all change how profits flowing to you as a foreign owner are taxed at the state level. Keep federal filings separate from these state questions: Form 5472 reporting for foreign-owned entities and its $25,000 per-failure penalties continue to apply regardless of any ballot outcome. Acting as a US importer of record for your shipments is a customs matter and does not create state income or sales tax nexus by itself, though inventory you hold in a state can.
UK-based sellers should fold these results into annual planning with their ecommerce accountant in the UK, and keep US state tax positions separate from ecommerce bookkeeping in the UK. Our guide to US tax obligations for ecommerce sellers explains the wider compliance picture.
Your action checklist
- Confirm certification before acting. Check each state’s official election and revenue department pages for certified results and implementation guidance.
- Map owner-level exposure. If you or other foreign owners expect more than $1 million in Washington-sourced income from 2028, model the 9.9% tax, including the pass-through entity election.
- Update your multi-state projections. North Carolina’s 3.5% cap and Colorado’s pending outcome belong in your income tax forecast, not in your sales tax settings.
- Reprice landed costs. Florida’s homestead expansion shifts property tax toward commercial space, which can feed into warehouse and 3PL lease costs over time.
- Leave sales tax alone. Do not change nexus registrations or marketplace tax settings based on these results. Nothing here alters sales tax collection rules.
Frequently asked questions
Do any of these ballot results change my sales tax obligations as an international seller?
No. Every measure covered here concerns income tax, wealth tax, or property tax. Sales tax nexus thresholds, marketplace facilitator rules, and registration duties are unchanged.
Is the Washington 9.9% income tax final?
The repeal initiative failed, so the tax enacted by ESSB 6346 remains scheduled to take effect on income received from January 1, 2028, with first payments in 2029. Nonresidents are taxed on Washington-sourced income, and eligible entities can elect to pay the tax at the entity level.
Did California’s billionaire wealth tax pass?
No. Proposition 40 was rejected by a comfortable margin in preliminary results, and Proposition 42, which restricts new wealth taxes, was passing. California certifies its results by December 11, 2026.
What should I watch in Colorado?
Both Amendment 87 and Proposition 136 were too close to call. If both pass, the measure with more votes has historically taken precedence. Follow the Colorado Secretary of State’s canvass before adjusting any income tax projections.