Budget Blog

April tax collections were generally strong across many states, with most also reporting revenues above forecast. April is the tenth month of fiscal 2026 for most states (46 states will end their fiscal year on June 30th) and the largest month for tax collections for income tax states due to the April 15th tax filing deadline. Personal income taxes performed particularly well in April, supported by strong withholding payments, capital gains activity, bonuses, and elevated final payments in several states. Sales tax collections also remained positive, reflecting continued consumer spending growth. Corporate income tax collections were more uneven, with a number of states citing softness tied to elevated refunds, federal tax law changes, or other factors. Several states also noted that comparisons to last year were affected by timing issues related to prior-year filing deadline extensions or refund activity. Although a handful of states experienced weaker year-over-year monthly collections, many still exceeded revenue estimates for the month due to stronger than anticipated income and sales tax performance.

Year-to-date collections also remain favorable overall, with many states reporting both revenues ahead of prior-year levels and above forecast. In NASBO’s Fall 2025 Fiscal Survey of States, states projected fiscal 2026 revenues would be 0.7 percent higher than preliminary actual totals for fiscal 2025. Across the states who have released April totals to date, year-over-year revenue growth has generally ranged from small gains to mid-single-digit increases, though a few states reported flat or slightly declining total collections, in some instances related to recently adopted tax cuts. Personal income taxes continue to be a key driver of growth, supported by resilient labor markets, strong withholding collections, and higher non-withholding payments. Sales tax revenues have generally posted moderate but steady gains, indicating continued consumer spending strength. Corporate income taxes remain the weakest major revenue source in several states partly due to elevated refunds and softer corporate profits.

Despite some weakness with corporate income taxes, overall year-to-date collections in most states remain above original estimates. Additionally, several states recently revised revenue forecasts upward following the release of April tax collection totals. As states prepare to enter fiscal 2027, most will likely end fiscal 2026 with positive revenue growth and totals above original forecast, however, they are unlikely to see substantial end-of-year revenue surpluses.

Resources

Below is a compilation of recent press articles and official sources detailing states’ April revenue collections. In addition, please visit NASBO’s website for links to updated state revenue forecasts. 

• The federal government posted a $215 billion surplus in April, down 17 percent from last year, according to the U.S. Treasury Department. The smaller surplus was due both to declines in personal income and corporate income tax collections, as well as higher refunds, partly related to the passage of the One Big Beautiful Bill Act (OBBBA).
  
  
• Arkansas’ April tax collections were up 14.8 percent compared to April last year and were 13.9 percent above projections. In April, personal income taxes increased 20.7 percent, sales taxes 5.8 percent, and corporate income taxes 14.3 percent. The Department of Finance and Administration noted part of the growth was due to the governor last year extending the state’s filling deadline to July 31. For the year, the state remains $52 million ahead of projections. For the year, net available general revenues are 7.4 percent higher than a year ago and 4.0 percent above forecast.
  
  
• Georgia’s April tax revenues increased 5.9 percent compared to last year, with individual income taxes increasing 10.1 percent, sales tax 8.0 percent, and corporate income taxes 2.9 percent. The Department of Revenue noted monthly comparisons were impacted by last year’s extension of the return and payment deadlines for both individual and corporate income taxes to May 1, 2025, due to the impacts of Hurricane Helene. Monthly comparisons were affected by the recent motor fuel tax suspension effective March 20, 2026. Year-to-date, net tax revenues are up 2.5 percent compared to last year.
  
  
• Idaho’s April tax collections were 6.1 percent below last year, with individual income decreasing 16.7 percent, sales tax increasing 20.8 percent (driven in part by a change in how Tax Relief Fund distributions are recorded), and corporate income taxes rising 1.3 percent. While April tax collections were below last year, they were above forecast by 7.6 percent. For the fiscal year to date, general fund revenues are tracking approximately 3.9 percent ahead of forecast, according to the Division of Financial Management.
  
  
• Illinois’ April tax collections increased 2.0 percent compared to last year, with personal income taxes rising 1.0 percent, sales tax growing 2.3 percent, and corporate income taxes decreasing 8.2 percent. Year-to-date, total general fund revenues are 3.8 percent above original budget projections. Much of the year-over-year growth is due to personal income taxes while corporate income taxes remain below last year’s level. The decline in corporate income taxes was anticipated and is partly due to provisions in the OBBBA, according to the Commission on Government Forecasting and Accountability.
  
  
• Indiana’s April revenue totals were 8.8 percent above last year with increases in individual income tax collections (5.8 percent), sales taxes (7.1 percent), and corporate tax collections (37.2 percent). Overall, April general fund revenues were 9.6 percent above the December revenue forecast. The State Budget Agency noted differences relative to budget plan monthly estimates and prior year actuals can be influenced by various factors including seasonality, evolving economic and financial market dynamics, timing of payments and refunds, federal policy actions, tax rates and other changes to law. Year-to-date general fund revenues are 2.3 percent above the revenue estimate.  
  
  
• Kansas’ April tax collections were 4.0 percent above last year with growth in individual income taxes (17.3 percent) and sales and use taxes (2.2 percent), while corporate income taxes decreased (-25.0 percent). In total, April tax collections were 2.3 percent above forecast. The governor noted that while total April tax collections returned as projected, the monthly report indicated the continued softening of corporate income tax collections. Year-to-date tax collections are 0.1 percent greater than last year and 0.4 percent higher than forecast.
  
  
• Kentucky’s April general fund receipts grew 15.2 percent compared to last year with individual income tax collections increasing 16.1 percent, sales and use tax receipts 4.8 percent, and corporation income and LLET tax receipts 24.6 percent. The state budget director noted that individual income tax collections increased primarily on the strength of net returns and pass-through entity tax collections, while corporate income tax collections, which had been weak through the first nine months of the year, rose sharply. Year-to-date receipts have grown 1.7 percent, while the official revenue estimate calls for a decline of 1.3 percent for the current fiscal year.
  
  
• Massachusetts’ preliminary revenue collections for April were 7.7 percent more than actual collections in April 2025. Compared to last year, income tax collections increased 10.0 percent and sales and use tax collections 2.9 percent, while corporate and business tax collections decreased 5.7 percent. The Department of Revenue Commissioner noted the increase in withholding was driven, in part, by an increase in collections from firms in the finance and insurance industry. The increase in non-withholding income tax was likely driven, in part, by surtax and capital gains tax collections. The decrease in corporate and business tax is due to an unfavorable increase in refunds, partially offset by an increase in estimated and return payments. Year-to-date collections are 4.1 percent more than last year and 4.3 percent above estimates.
  
  
• Minnesota’s net general fund revenues for April were 5.7 percent above forecast. Net receipts from individual income tax and general sales tax were higher than forecast, while corporate franchise tax net revenues were less than forecast. Year-to-date receipts are 0.2 percent more than forecast according to the Office of Management and Budget.
  
  
• Mississippi’s total general fund revenue collections for April were 1.6 percent above the prior year and 6.4 percent above the revised revenue estimate. For the month of April, individual income tax collections decreased 1.1 percent, sales taxes rose 0.6 percent, and corporate income taxes increased 11.0 percent. Year-to-date revenue collections are 1.6 percent above the prior year and 3.0 percent above the revised estimate, according to the Legislative Budget Office.
  
  
• Missouri’s net general revenue collections for April decreased 10.7 percent compared to last year, with individual income tax collections decreasing 4.3 percent, sales and use tax collections increasing 9.7 percent, and corporate tax collections decreasing 17.3 percent. Year-to-date net general revenue collections have decreased 0.8 percent, with individual income taxes increasing 1.6 percent for the year, sales and use taxes increasing 5.0 percent, and corporate income tax collections decreasing 21.0 percent, according to the Division of Budget and Planning.
  
  
• Nebraska’s April net receipts were 8.2 percent below forecast, largely due to April tax refunds being 98.3 percent above forecast. For the month of April, net individual income was 45.3 percent below forecast, net sales and use was 11.4 percent above forecast, and net corporate income was 4.7 percent below forecast. Net general fund receipts year-to-date are 11.3 percent higher than the prior year and 2.4 percent below the forecast, according to the Department of Revenue.
  
  
• New Jersey’s April revenue collections increased 7.0 percent compared to last year. The gross income tax rose 4.8 percent, sales and use taxes increased 8.6 percent, and the corporation business tax grew 2.8 percent. Fiscal year-to-date total major revenues are 4.6 percent above the same period last year, with the gross income tax increasing 8.9 percent and the sales and use tax rising 3.2 percent. Year-to-date corporate business taxes are down 24.8 percent due to elevated refund levels and broad declines in final and estimated payments, according to the Department of the Treasury.  
  
  
• North Carolina experienced strong tax collections across multiple major revenue sources in March and April. The Office of State Budget and Management noted individual income tax collections exceeded expectations due primarily to final and withholding payments, driven by elevated capital gains realizations during tax year 2025 and substantial corporate bonuses paid to employees from strong 2025 profits. Gross sales tax collections in April were well above expectations due in part to a substantial increase in federal income tax refunds resulting from recent federal tax changes. Additionally, corporate income tax extension and final payments came in well above target in both March and April, reflecting continued strong growth in corporate profits among large corporations in 2025.
  
  
• Ohio’s total receipts and transfers in April increased 2.7 percent compared to last year; tax revenues increased 10.5 percent, non-tax revenues decreased 22 percent, and transfers decreased 15.4 percent. Personal income taxes increased 16.1 percent in April, while non-auto sales tax grew 9.0 percent and the commercial activity tax was 0.1 percent below the prior year. Overall, April tax revenues outperformed the estimate by 13.3 percent. Year-to-date, total tax revenue with the sales tax holiday transfer is 4.9 percent above the estimate; personal income taxes account for 60.3 percent of the positive variance according to the Office of Budget and Management.
  
  
• Oklahoma’s April general revenue fund collections were 0.4 percent above collections from April 2025, according to the Office of Management and Enterprise Services. Examining individual sources, total income taxes were down 8.1 percent compared to last year, while sales taxes increased 14.2 percent and gross production taxes rose 12.3 percent. General revenue fund collections in April were 7.4 percent above the monthly estimate. Year-to-date, revenue collections have grown 0.6 percent compared to last year and are 5.8 percent above forecast.
  
  
• Pennsylvania’s April general fund revenue collections were 8.4 percent more than anticipated. Personal income tax, sales tax, and corporation tax revenue were all above estimate in April. Year-to-date revenue collections are 2.4 percent above estimate. For the year, personal income tax is 2.5 percent above estimate, the sales tax is 0.6 percent more than anticipated, and corporation tax revenue is 3.3 percent above estimate. The Revenue Secretary noted Pennsylvania is seeing a lot of positive trends from its major revenue sources with three months to go in the fiscal year.
  
  
• Rhode Island’s April adjusted general revenues were 10.8 percent above projections, according to the Department of Revenue. Personal income taxes were 20.7 percent above estimate and the business corporation tax was 32.4 percent above forecast, while the sales and use tax trailed the estimate by 2.3 percent. For the year, revenues are 2.6 percent above forecast. The personal income tax is 2.9 percent above, the business corporation tax 18.0 percent higher, and the sales and use tax 0.1 percent below forecast.
  
  
• South Dakota’s ongoing general fund revenues were 16.9 percent more than April 2025. Net sales and use tax grew 12.7 percent, while other revenue sources such as licenses, permits, and fees as well as unclaimed property receipts experienced strong growth. Total general fund revenues were 5.4 percent more than the legislatively revised adopted estimate for April. Year-to-date ongoing general fund revenues are 2.8 percent more than the same period last year and 0.4 percent more than forecast according to the Bureau of Finance and Management.
  
  
• Tennessee’s total tax growth rate for April was 9.5 percent higher than April 2025. Individual tax performance included sales taxes up 6.4 percent and corporate taxes up 15.2 percent. Year-to-date total tax revenues are up 5.7 percent compared to last year, with sales taxes increasing 4.3 percent and corporate taxes growing 12.5 percent. Additionally, year-to-date total tax revenues are 1.5 percent greater than the budget estimate, according to the Department of Finance and Administration.
  
  
• Texas’ April sales tax revenue was up 9.8 percent compared to April 2025. The comptroller noted that the largest gains in April came from sectors driven primarily by consumer spending, with retail trade and services both doubling compared to April 2025. The total sales tax revenue for the last three months ending in April 2026 was up 7.9 percent compared with the same period a year ago; sales tax accounts for 58 percent of tax collections and is the largest source of state funding for the state budget.
  
  
• Virginia’s April revenues grew 6.9 percent compared to the previous April. Looking at individual revenue sources, individual income tax withholding, individual income tax non-withholding, and sales tax all grew while corporate income taxes decreased.  Year-to-date general fund revenues have grown 7.3 percent with withholding collections up 7.0 percent, non-withholding up 6.3 percent, sales taxes up 6.3 percent, and corporate income tax revenue 1.3 percent below. For the year, revenues are ahead of forecast by 3.3 percent, however, nearly 70 percent is from the most volatile revenue sources (non-withheld income tax and individual refunds), according to the Secretary of Finance.
  
  
• West Virginia’s general revenue fund collections in April were 4 percent above last April. Looking at the state’s individual revenue sources, personal income tax and severance tax were both above April 2025’s levels, while the consumer sales/use tax and corporation net income tax were below. Overall, revenues were 11.7 percent more than estimate in April. Year-to-date collections are 3 percent higher than last year. Personal income tax, consumer sales tax/use tax, and severance tax are all above last year, while the corporate net income tax is below. Fiscal year-to-date collections are 6.0 percent more than the revenue estimate, according to the State Budget Office.
  
  
• Wisconsin’s general purpose revenue in April increased 13.7 percent compared to April 2025. Individual income tax grew 15.7 percent, general sales and use 3.6 percent, and corporate 22.7 percent. Year-to-date, revenues are 5.2 percent above last year’s level with individual income up 4.4 percent, general sales and use 4.5 percent, and corporate 11.2 percent. The Department of Administration noted that growth has significantly exceeded the 1.4 percent growth rate estimated in January for fiscal 2026.