DiNapoli: Business tax receipts drive higher collections in the 1st quarter
Albany, July 16, 2026 – State tax receipts totaled $37.2 billion through the first quarter of State Fiscal Year (SFY) 2027, $2.4 billion higher than Division of the Budget (DOB) estimated in the SFY 2027 Enacted Budget Financial Plan. State tax collections were also $4 billion higher than the first quarter of 2025, according to the monthly state cash report released by New York State Comptroller Thomas P. DiNapoli.
“Tax collections for the state were higher than projected, primarily reflecting strong business tax collections,” DiNapoli said. “However, caution is warranted as geopolitical conflicts and changing trade policies have contributed to higher inflation, financial market volatility, and slowing employment growth.”
Personal income tax (PIT) receipts totaled $20.9 billion and were $654.2 million above DOB’s financial plan projections through the first quarter. However, PIT receipts were $1.7 billion higher than the same period in SFY 2026, reflecting, in part, the 6.5% increase in collections from the settlement of the 2025 tax year.
Business taxes, which include collections from the Pass-Through Entity Tax (PTET), totaled $9.4 billion, $1.9 billion higher than through June in the prior fiscal year and $1.6 billion higher than DOB’s financial plan projections. This reflects an increase in corporate franchise tax and PTET collections of 34.7% and 23.7%, respectively over last year.
Year-to-date consumption and use tax collections totaled $6.2 billion which was 7.5% or $432.4 million higher than the same period last year, and $126.9 million higher than anticipated. Sales tax receipts, the largest share of these taxes, increased by $172.2 million, or 8.6% in the month of June.
All Funds spending through June totaled $64.3 billion, which was $3.4 billion, or 5.7%, higher than last year for the same period, due in part to higher Medicaid spending. All Funds spending through June was $1.5 billion lower than DOB projected, primarily due to lower spending on local assistance grants. State Operating Funds spending totaled $36.3 billion, $2.4 billion, or 7% higher than last year and $457 million lower than DOB’s projections.
The State’s General Fund ended June with a balance of $62.1 billion, almost $3 billion higher than DOB projected and $8.6 billion higher than last year at the same time, primarily due to higher than anticipated tax collections and lower than anticipated spending.
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Posted: July 16th, 2026 under Business News, General News, Northern NY News, State Government News, Statewide News.