New York collected more tax revenue than expected in the last fiscal year, but state officials are warning that economic uncertainty could cloud the outlook ahead.
Tax collections for the 2025–26 fiscal year totaled $127.5 billion, exceeding projections by $2.3 billion and marking a nearly $10 billion increase from the previous year.
The growth was largely driven by higher personal income tax receipts tied to strong financial markets in 2025. Collections from wages and estimated payments both increased, though some gains were offset by refund credits.
Sales tax revenue also rose, while business taxes saw a notable jump due to higher pass-through entity tax collections.
Despite the strong performance, Comptroller Thomas DiNapoli cautioned that economic growth — particularly employment — is expected to slow. Federal policy decisions and geopolitical tensions are also contributing to volatility that could affect future revenues.
State spending climbed to nearly $259 billion, up more than 7% from the prior year, while reserves were bolstered with additional deposits into the state’s rainy day fund.
Officials say the current fiscal strength provides stability, but warn that careful budgeting will be necessary as economic conditions evolve.
FingerLakes1.com is the region’s leading all-digital news publication. The company was founded in 1998 and has been keeping residents informed for more than two decades. Have a lead? Send it to [email protected].