New York State tax collections are running well ahead of projections as the state heads into the final quarter of the fiscal year, according to a new report from State Comptroller Thomas P. DiNapoli.
The latest State Cash Report shows tax receipts totaled $85.8 billion through the first three quarters of State Fiscal Year 2025–26. That figure is $2.3 billion higher than estimates included in the Division of Budget’s Mid-Year Update. Compared to the same period last year, collections were up $5.9 billion.
“The state enters the final quarter of the fiscal year in good financial condition,” DiNapoli said. “However, continued threats from Washington pose a risk to the state’s finances, as well as its economy. The federal spending cuts necessitate a continued bolstering of reserves in order to protect the services New Yorkers rely on.”
Personal income tax receipts totaled $44.9 billion, coming in $1.5 billion above budget projections and $4.2 billion higher than the same point in the prior fiscal year. The comptroller’s office said that growth reflects, in part, rising wages and stronger financial markets over the course of the year.
Year-to-date consumption and use tax collections reached $17.9 billion, up 5.7 percent, or $964.4 million, from the same period last year and $384.4 million higher than budget estimates. Sales tax receipts, which make up the largest share of those taxes, increased by $951.7 million, or 6.2 percent.
Business taxes, including collections from the pass-through entity tax, totaled $20.6 billion. That was $416.4 million higher than through December of the prior fiscal year and $321.8 million above the Division of Budget’s financial plan projections.
State spending also increased over the same period. All Funds spending through December totaled $183.4 billion, up $11.1 billion, or 6.5 percent, from last year, driven primarily by higher Medicaid and other public health costs. All Funds spending was $1.2 billion above projections, largely due to higher local assistance spending, partially offset by lower-than-expected spending from state capital projects funds.
State Operating Funds spending reached $100.1 billion, an increase of $9.1 billion, or 10 percent, from last year and $401.2 million higher than projected.
The state’s General Fund ended December with a balance of $53.9 billion. That was $2.4 billion higher than projected, largely due to stronger-than-expected tax collections, but down $1.3 billion, or 2.3 percent, from the same time last year.
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