By CaraLynn Caulfield
New York State brought in $33.2 billion in tax receipts during the first quarter of the 2025–26 fiscal year — $580.5 million more than projected by the Division of the Budget (DOB), according to a report released by State Comptroller Thomas P. DiNapoli. Revenues were also $3.3 billion higher than collections during the same period last year.
“Higher tax collections for the state primarily reflect strong personal income tax collections on 2024 income,” DiNapoli said. “Slowing employment and economic growth may present a challenge in the coming months, along with the potential impact of tariffs and federal policy changes that have yet to be fully realized.”
Personal income tax (PIT) receipts — the state’s largest revenue source — totaled $19.2 billion, exceeding DOB estimates by $66.3 million and up nearly $3 billion compared to the first quarter of the previous fiscal year. The year-over-year jump includes a 24.9% increase from settlements tied to the 2024 tax year.
Sales and consumption taxes brought in $5.8 billion year-to-date, up $182.5 million, or 3.3%, from last year. Sales tax collections alone rose 1.7% in June, adding $34.1 million. Business tax revenue, including Pass-through Entity Tax (PTET) payments, reached $7.5 billion — $558.2 million above projections and $176 million above last year’s total for the same period.
Spending also increased across the board. All Funds spending through June totaled $60.9 billion, which is $5.9 billion, or 10.8%, higher than the same period last year. The spike was largely driven by rising Medicaid costs. Still, spending came in $1.7 billion under DOB’s expectations, due mostly to lower local assistance outlays.
The General Fund ended June with a balance of $53.6 billion, exceeding projections by $2.7 billion and surpassing last year’s total by $4 billion — a result of both higher-than-expected revenues and lower-than-expected expenditures.