C. Tax Revenues

2nd Quarter 2026 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 While general fund tax revenue data for the fourth quarter of 2025 and first quarter of 2026 were not available at the time of publication, first quarter of 2026 was available for several of its components. Comparing these components in first quarter of 2026 to the same quarter of 2025, Individual Income Tax revenues and Transient Accommodations Tax (TAT) collections increased, while General Excise and Use Tax (GET) revenues and Net Corporate 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 first quarter of 2026, GET revenues (excluding the County Surcharges) totaled $1,257.4 million, an increase of $39.6 million or 3.2 percent over the same quarter of 2025 (Table C-3).

Compared to the first quarter of 2026, Net Individual Income Tax revenues increased $21.0 million or 3.6 percent to $ 601.1 million in the first quarter of 2026 (Table C-4). In the first quarter of 2026, Declaration of Estimated Taxes increased $17.0 million or 8.9 percent (Table C-5), Payments with Returns increased $5.2 million or 6.8 percent (Table C-6), Revenues from Withholding Tax on Wages decreased $62.7 million or 9.0 percent (Table C-7), and Refunds decreased $61.7 million or 16.2 percent (Table C-8).

Net Corporate Income Tax revenues, which tend to be volatile by nature, were a negative $16.7 million in first quarter of 2026, a slight improvement compared to the negative $30.0 million in first quarter of 2025 (Table C-9). In the first quarter of 2026, the Declaration of Estimated Taxes decreased $5.3 million or 5.9 percent (Table C-10), the Payment with Returns increased $4.1 million or 30.5 percent (Table C-11), and the Refunds decreased $14.1 million or 10.7 percent (Table C-12), compared with the same quarter of 2025.

In the first quarter of 2026, TAT revenues increased $22.2 million, or 9.8 percent compared to the same quarter of 2025 (Table C-13).

According to the most recent data available, in the fourth quarter of 2025, the Retailing tax base increased 4.5 percent or $522.4 million (Table C14), the Services tax base increased 4.3 percent or $230.4 million (Table C-15), the Contracting tax base increased 3.8 percent or $132.9 million (Table C-16), and the Hotel Rentals tax base increased 3.2 percent or $49.1 million (Table C-17), compared to the same quarter of the previous year. In 2025, the Retailing tax base increased 3.9 percent, the Services tax base increased 5.3 percent, the Contracting tax base increased 3.2 percent, and the Hotel Rentals tax base increased 1.2 percent compared to 2024.

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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.