On a year-to-date basis, August through September, total tax revenues are 0.96% greater than the budget estimate
Department of Finance and Administration Commissioner Jim Bryson today reported that total September tax revenues were $2.2 billion, $20.6 million more than the budgeted estimate and $1.3 million more than Sept. 2024. The total tax growth rate for the month was 0.06%.
General fund revenues were $14.3 million more than the September estimate, while the four other funds that share in state tax revenues were $6.3 million more than the estimates.
On an accrual basis, September is the second month in the 2025-2026 fiscal year.
“September’s total tax collections surpassed our budgeted expectations for the month,” Bryson said. “Sales tax revenues, which reflect August’s taxable sales activity, were slightly above estimates and showed solid growth compared to the same period last year. However, corporate tax collections, or franchise and excise taxes, fell short of expectations. All other combined revenues exceeded estimates.
“We are encouraged that overall revenues are aligning with our projections, but we will continue to monitor collections and spending carefully to ensure the budget remains balanced.”
On a year-to-date basis, August through September, total tax revenues are 0.96% greater than the budget estimate or $36.2 million above expectations. When compared to this same period last year, total tax revenues have grown 1.57% or $59.0 million.
General fund revenues are 0.73% greater than the year-to-date budgeted estimate or $22.3 million higher. Likewise, general fund collections compared to this same period last year have increased 0.70% or $21.4 million.
Individual tax performance compared to Sept. 2025 Budgeted Estimates:
- Sales Taxes: Above estimate by 1.90% or $23.6 million
- Corporate Taxes (Franchise & Excise): Below estimate by 1.56% or $10.3 million
- Fuel Taxes: Above estimate by 1.41% or $1.6 million
- All other taxes: Above estimate by 3.38% or $5.7 million
Year-to-date performance compared to Budgeted Estimates:
- Sales Taxes: Above estimate by 1.96% or $49.1 million
- Corporate Taxes (Franchise & Excise): Below estimate by 3.78% or $26.6 million
- Fuel Taxes: Above estimate by 2.12% or $4.7 million
- All other taxes: Above estimate by 2.61% or $8.9 million
Individual tax performance compared to Sept. 2024:
- Sales Taxes: Up 2.84% or $34.9 million
- Corporate Taxes (Franchise & Excise): Down 5.83% or $40.0 million
- Fuel Taxes: Up 2.46% or $2.7 million
- All other taxes: Up 2.16% or $3.7 million
Individual tax performance compared to August through Sept. 2024:
- Sales Taxes: Up 4.01% or $98.3 million
- Corporate Taxes (Franchise & Excise): Down 6.84% or $49.7 million
- Fuel Taxes: Up 1.75% or $3.9 million
- All other taxes: Up 1.87% or $6.5 million
The budgeted revenue estimates for 2025–2026 are based on the State Funding Board’s consensus recommendation from Nov. 25, 2024, which was adopted by the first session of the 114th General Assembly in April 2025. These estimates also incorporate any revenue changes enacted during the 2025 General Assembly session.
Monthly estimates for fiscal year 2025–2026 are available on the state’s website at https://www.tn.gov/content/tn/finance/fa/fa-budget-information/fa-budget-rev.html.
Copyright 2025 The Upper Cumberland Business Journal. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.
Other stories you may want to check out:
