March 2021 State Tax Collections

The recent trend of strong collections from the state’s three largest taxes—the personal income tax, corporation tax, and sales tax—continued in March, with revenues exceeding projections by $2.5 billion (30 percent). While collections were up across the board, income tax withholding and corporation tax payments accounted for most the higher-than-expected collections in March. March corporation tax payments were a mix of estimated payments for 2021 and pass-through entity final payments for 2020.