Five states split on income taxes: Colorado and Washington go up, N.C. and Iowa cap

Voters in five states made major income tax decisions in the Nov. 3 midterm elections. Some backed higher taxes on top earners. Others made future tax increases harder to pass. ¹

One caution on Colorado. Newsweek reports that voters approved Amendment 87. Colorado Politics reported on Nov. 4 that the measure was too close to call, leading 50.66% to 49.34% with more than 2.3 million ballots counted. ¹² Official results had not been confirmed in the reporting we reviewed.

Colorado, California and Washington: higher rates on top earners

Amendment 87 would replace Colorado's flat 4.4 percent income tax with six graduated rates, from 3.7 percent to 8.4 percent, starting with the 2027 tax year. The top rate would apply to taxable income above $1 million. ¹

The state's fiscal analysis expects bills to fall for taxpayers with Colorado taxable income below $510,834. Those above that line would pay more. The change is projected to raise nearly $2 billion in 2027-28 for public education, health care and early childhood programs. ¹

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Tax the rich their fair share to fund healthcare, childcare and schools while providing a tax break to 97% of Coloradans

Not every Democrat backed the measure. Attorney General Phil Weiser, who is running for governor, said he supports a progressive income tax but opposed Amendment 87. He warned the state could lose hundreds of millions of dollars if a competing measure, Proposition 136, also passed. ²

California voters approved Proposition 3, which makes permanent the higher income tax rates on the state's top earners. Those rates were due to expire in 2031. The measure creates no new rate. The higher rates start above about $371,000 for single filers and $742,000 for married couples filing jointly. ¹

California's Legislative Analyst's Office estimated that this preserves between $5 billion and $15 billion a year in state revenue. About 40 percent of that supports schools and community colleges. ¹

Washington voters rejected Initiative 645. It would have repealed the state's new 9.9 percent tax on annual income above $1 million. The tax takes effect Jan. 1, 2028, and the first returns are due in 2029. ¹

North Carolina and Iowa: harder to raise taxes

North Carolina voters approved a constitutional amendment that lowers the maximum state income tax rate allowed from 7 percent to 3.5 percent. The current rate is 3.99 percent in 2026 and is scheduled to fall to 3.49 percent in 2027. The cap does not cut taxes now. It limits lawmakers' ability to raise them without another constitutional amendment. ¹

Iowa voters approved Amendment 1. Raising income tax rates, or creating a new income tax, will now take a two-thirds vote in both chambers. That means at least 67 of 100 House members and 34 of 50 senators. ¹

Supporters in North Carolina and Iowa say the changes protect taxpayers. Opponents say they could limit a state's ability to respond to budget pressures. ¹

What happens next

Most of these changes will not alter tax bills right away. The Colorado count and certification still need to finish. Washington's tax is more than a year away. ¹²

That matters because states pay for schools, health programs and much else. The pattern is a split. Some states are asking high earners to pay more to fund services. Others are making it harder to raise money later. ¹

The Record

1. Nov 3, 2026Voters in five states decide income tax measures in the midterm elections. ¹
2. Nov 4, 2026Colorado Politics reports Amendment 87 leading 50.66% to 49.34%, still too close to call. ²
3. Jan 1, 2027North Carolina's 3.5 percent cap applies to tax years beginning on or after this date. Colorado's new rates begin with the 2027 tax year. ¹
4. Jan 1, 2028Washington's 9.9 percent tax on income above $1 million is scheduled to take effect. ¹

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<h2>Five states split on income taxes: Colorado and Washington go up, N.C. and Iowa cap</h2> <p><em>By The GOP Files Kitchen-Table Desk. This article first appeared on <a href="https://thegopfiles.com/story/five-states-split-on-income-taxes-colorado-and-washington-go-up-n-c-and-iowa-cap">The GOP Files</a> on Sunday, November 8, 2026.</em></p> <p>Voters in five states made major income tax decisions in the Nov. 3 midterm elections. Some backed higher taxes on top earners. Others made future tax increases harder to pass.</p> <p>One caution on Colorado. Newsweek reports that voters approved Amendment 87. Colorado Politics reported on Nov. 4 that the measure was too close to call, leading 50.66% to 49.34% with more than 2.3 million ballots counted. Official results had not been confirmed in the reporting we reviewed.</p> <h2>Colorado, California and Washington: higher rates on top earners</h2> <p>Amendment 87 would replace Colorado&#39;s flat 4.4 percent income tax with six graduated rates, from 3.7 percent to 8.4 percent, starting with the 2027 tax year. The top rate would apply to taxable income above $1 million.</p> <p>The state&#39;s fiscal analysis expects bills to fall for taxpayers with Colorado taxable income below $510,834. Those above that line would pay more. The change is projected to raise nearly $2 billion in 2027-28 for public education, health care and early childhood programs.</p> <blockquote><p>Tax the rich their fair share to fund healthcare, childcare and schools while providing a tax break to 97% of Coloradans</p><p>&mdash; Julie Gonzales, Colorado state senator, D-Denver</p></blockquote> <p>Not every Democrat backed the measure. Attorney General Phil Weiser, who is running for governor, said he supports a progressive income tax but opposed Amendment 87. He warned the state could lose hundreds of millions of dollars if a competing measure, Proposition 136, also passed.</p> <p>California voters approved Proposition 3, which makes permanent the higher income tax rates on the state&#39;s top earners. Those rates were due to expire in 2031. The measure creates no new rate. The higher rates start above about $371,000 for single filers and $742,000 for married couples filing jointly.</p> <p>California&#39;s Legislative Analyst&#39;s Office estimated that this preserves between $5 billion and $15 billion a year in state revenue. About 40 percent of that supports schools and community colleges.</p> <p>Washington voters rejected Initiative 645. It would have repealed the state&#39;s new 9.9 percent tax on annual income above $1 million. The tax takes effect Jan. 1, 2028, and the first returns are due in 2029.</p> <h2>North Carolina and Iowa: harder to raise taxes</h2> <p>North Carolina voters approved a constitutional amendment that lowers the maximum state income tax rate allowed from 7 percent to 3.5 percent. The current rate is 3.99 percent in 2026 and is scheduled to fall to 3.49 percent in 2027. The cap does not cut taxes now. It limits lawmakers&#39; ability to raise them without another constitutional amendment.</p> <p>Iowa voters approved Amendment 1. Raising income tax rates, or creating a new income tax, will now take a two-thirds vote in both chambers. That means at least 67 of 100 House members and 34 of 50 senators.</p> <p>Supporters in North Carolina and Iowa say the changes protect taxpayers. Opponents say they could limit a state&#39;s ability to respond to budget pressures.</p> <h2>What happens next</h2> <p>Most of these changes will not alter tax bills right away. The Colorado count and certification still need to finish. Washington&#39;s tax is more than a year away.</p> <p>That matters because states pay for schools, health programs and much else. The pattern is a split. Some states are asking high earners to pay more to fund services. Others are making it harder to raise money later.</p> <p><em>Read the original, with every source linked, at <a href="https://thegopfiles.com/story/five-states-split-on-income-taxes-colorado-and-washington-go-up-n-c-and-iowa-cap">thegopfiles.com</a>. Republished under The GOP Files' <a href="https://thegopfiles.com/republish">free republishing terms</a>.</em></p> <img src="https://thegopfiles.com/api/rp/five-states-split-on-income-taxes-colorado-and-washington-go-up-n-c-and-iowa-cap.gif" alt="" width="1" height="1" style="border:0;width:1px;height:1px">

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Sources

1. Newsweek, “5 States Vote for Major Changes to Income Tax” (2026-11-08). newsweek.com/5-states-vote-for-major-changes-to-income-tax-1
2. Colorado Politics, “Colorado's tiered income tax initiative still too close to call” (2026-11-04). coloradopolitics.com/2026/11/04/colorados-tiered-income-tax-

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