NYS Office of the Comptroller DiNapoli: State Tax Collections Exceeded Estimates for SFY 2025-26

 

Tax collections for State Fiscal Year (SFY) 2025-26 totaled $127.5 billion, $2.3 billion higher than estimates made by the Division of the Budget (DOB) in the 30-day amendments to the SFY 2026-27 Executive Budget financial plan, according to the March State Cash Report released today by New York State Comptroller Thomas P. DiNapoli.

Tax collections for SFY 2025-26 were nearly $10 billion higher than the previous year due, in part, to increased Personal Income Tax (PIT) receipts largely reflecting financial market growth in 2025.    

“The state’s tax collections exhibited strong growth in the last fiscal year but economic growth, particularly employment, is projected to slow,” DiNapoli said. “Federal actions and geopolitical conflicts are injecting volatility into the economy that may affect future tax collections. State policymakers should utilize caution and ensure that the enacted budget for this fiscal year accounts for these risks.”

PIT collections totaled $67.4 billion, $6.2 billion (10.1%) higher than prior year collections. The increase was primarily attributable to stronger withholding and quarterly estimated tax payments related to the 2025 tax year partially offset by refunds associated with the inflation refund credits. However, PIT collections were $489.1 million lower than Executive Budget Financial Plan projections.

Consumption and use taxes, which include sales tax, totaled $23.6 billion, exceeding the prior year by $1.2 billion, or 5.5%. Collections were $23.2 million higher than DOB’s latest projections. 

Business tax collections totaled over $33.2 billion which was $1.9 billion higher than the previous year, reflecting a $2.3 billion increase in Pass Through Entity Tax receipts, partially offset by a $462.4 million decrease in receipts from all other business taxes. Total business tax collections exceeded DOB’s latest projections by $2.5 billion. 

All Funds spending totaled close to $259 billion, which was $17.5 billion, or 7.2%, higher than last year. The General Fund ended the fiscal year with a balance of $56.2 billion, a decrease of $738.2 million (1.3%) from the opening balance.

Major actions taken by DOB at the end of the fiscal year include:

• Transferring a little over $1 billion into the Rainy Day Reserve Fund, which brings the fund to $8.1 billion;
• Making $4.5 billion in debt pre-payments for the Dormitory Authority of the State of New York and Empire State Development Corporation bonds;
• Deferring $1.3 billion in state-share Medicaid payments due to be paid in March 2026 to April 2026;
• Transferring $250 million into the Health Care Transformation Fund in SFY 2025-26; and,
• Transferring $250 million into the Retiree Health Benefit Trust for a total of $2.2 billion.

March Cash Report