New York state tax revenues and spending both ran ahead of budget projections through December, according to a new report from State Comptroller Thomas DiNapoli.
State tax receipts totaled $85.8 billion through the first three quarters of the 2025–26 fiscal year, coming in $2.3 billion higher than estimates from the Division of Budget’s mid-year update. Collections were also $5.9 billion higher than the same period last year.
DiNapoli said the state enters the final quarter of the fiscal year in solid financial condition, but warned that potential federal spending cuts could pose risks going forward. He said building reserves remains critical to protecting services New Yorkers rely on.
Personal income tax receipts reached $44.9 billion, exceeding projections by $1.5 billion and rising $4.2 billion from the prior year. The increase reflects wage growth and stronger financial markets over the course of the year.
Sales and other consumption taxes also outperformed expectations. Year-to-date collections totaled $17.9 billion, up nearly 6 percent from last year and $384 million above projections. Sales tax receipts alone increased more than $950 million.
Business taxes totaled $20.6 billion, surpassing last year’s collections by more than $416 million and exceeding budget projections by $322 million.
Spending also came in higher than expected. All Funds spending totaled $183.4 billion through December, up $11.1 billion from the same point last year and $1.2 billion above projections. The increase was driven largely by higher Medicaid and public health costs.
State Operating Funds spending reached $100.1 billion, about 10 percent higher than last year and roughly $401 million above projections.
The state’s General Fund ended December with a balance of $53.9 billion. That was $2.4 billion higher than projected, though about $1.3 billion lower than the balance at the same time last year.
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