December 2020 State Tax Collections

December revenue collections from the state’s three largest taxes—the personal income tax, corporation tax, and sales tax—were ahead of Governor’s Budget projections by $3.0 billion (21 percent). Collections beat expectations across all components of the three taxes, with income tax withholding being the single largest contributor to higher-than-expected collections. The December withholding total of $9.5 billion exceeded the previous monthly record by more than $1.5 billion, suggesting that year-end bonuses were unusually high in 2020.