C. Tax Revenues

4th Quarter 2025 Report

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State general fund tax revenues decreased in the third quarter of 2025 compared to the same quarter of 2024.1 Among the components shown, General Excise and Use Tax (GET) revenues, Net Corporate Income Tax revenues, and Transient Accommodations Tax (TAT) collections increased while Net Individual Income Tax revenues decreased.

In the third quarter of 2025, total tax collections distributed to the State general fund totaled $2,344.6 million, a decrease of $402.7 million or 14.7 percent over the same quarter of 2024 (Tables C-1 and C-2). In the first three quarters of 2025, State general fund tax revenues decreased $553.5 million or 7.1 percent over the same period in the previous year.

During the third quarter of 2025, GET revenues (excluding the Counties’ Surcharges) totaled $1,197.1 million, an increase of $28.4 million or 2.4 percent over the same quarter of 2024 (Table C-3). In the first three quarters of 2025, GET revenues increased $163.8 million or 4.7 percent from the first three quarters of the previous year.

Compared to the third quarter of 2024, Net Individual Income Tax revenues decreased $119.2 million or 13.9 percent to $739.6 million in the third quarter of 2025 (Table C-4). In the third quarter of 2025, Declaration of Estimated Taxes decreased $33.9 million or 16.0 percent (Table C-5), Payments with Returns decreased $1.0 million or 2.2 percent (Table C-6), Revenues from Withholding Tax on Wages decreased $86.1 million or 12.2 percent (Table C-7), and Refunds decreased $1.8 million or 1.7 percent (Table C-8). In the first three quarters of 2025, Net Individual Income Tax collections decreased 274.8 million or 10.5 percent from the same period in 2024.

Net Corporate Income Tax revenues, which tend to be volatile by nature, increased from $78.0 million in the third quarter of 2024 to $106.6 million in the third quarter of 2025, an increase of $28.6 million (Table C-9). In the third quarter of 2025, the Declaration of Estimated Taxes decreased $3.1 million or 2.6 percent (Table C-10), the Payment with Returns decreased $3.8 million or 32.7 percent (Table C-11), and the Refunds decreased $35.5 million or 66.8 percent (Table C-12), compared with the same quarter of 2024. In the first three quarters of 2025, Net Corporate Income Tax revenues decreased $107.9 million or 26.7 percent from the same period in the previous year.

In the third quarter of 2025, TAT revenues increased $2.6 million, or 1.2 percent compared to the same quarter of 2024 (Table C-13). In the first three quarters of 2025, TAT revenues increased $6.7 million or 1.0 percent from the same period in the previous year.

According to the most recent data available, in the second quarter of 2025, the Retailing tax base increased 4.3 percent or $518.8 million (Table C14), the Services tax base increased 6.8 percent or $372.0 million (Table C-15), the Contracting tax base increased 7.1 percent or $236.7 million (Table C-16), and the Hotel Rentals tax base increased 3.7 percent or $67.9 million (Table C-17), compared to the same quarter of the previous year. For the first half of 2025, the Retailing tax base increased 3.7 percent, the Services tax base increased 6.2 percent, the Contracting tax base increased 12.7 percent, and the Hotel Rentals tax base increased 1.4 percent.

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1/   When interpreting tax figures in conjunction with other quarterly data in this report, it should be kept in mind that the tax data represent collections during the quarter. The transactions on which the taxes were paid did not necessarily take place during the quarter.