August 2021 State Tax Collections

Through the first two months of the 2021-22 fiscal year, collections from the state’s three largest taxes—personal income, corporation, and sales taxes—are running 20 percent ($3.6 billion) ahead of budget projections. A major driver of strong revenue collections has been the continuation of a recent trend of rapid growth in income tax withholding. Sales tax collections also have been better than expected, consistent with the elevated level of retail spending we have seen throughout much of 2021.