April tax collections were generally strong across many states, with most also reporting revenues above forecast. April is the tenth month of fiscal 2026 for most states (46 states will end their fiscal year on June 30th) and the largest month for tax collections for income tax states due to the April 15th tax filing deadline. Personal income taxes performed particularly well in April, supported by strong withholding payments, capital gains activity, bonuses, and elevated final payments in several states. Sales tax collections also remained positive, reflecting continued consumer spending growth. Corporate income tax collections were more uneven, with a number of states citing softness tied to elevated refunds, federal tax law changes, or other factors. Several states also noted that comparisons to last year were affected by timing issues related to prior-year filing deadline extensions or refund activity. Although a handful of states experienced weaker year-over-year monthly collections, many still exceeded revenue estimates for the month due to stronger than anticipated income and sales tax performance.
NASBO Budget Blog
By Brian Sigritz