NY Tax Collections Top Expectations

State Comptroller warns of economic headwinds ahead despite $2.3 billion surplus

Apr. 19, 2026 at 11:05am

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A minimalist illustration using bold shapes and primary colors to conceptually represent economic growth and volatility without any text or literal depictions.Geometric shapes and colors illustrate the complex economic forces impacting New York's tax collections.NYC Today

New York State collected $2.3 billion more in taxes than expected during the last fiscal year, according to a new report from State Comptroller Thomas P. DiNapoli. The March State Cash Report shows tax collections for State Fiscal Year 2025-26 totaled $127.5 billion, driven in large part by growth in personal income tax revenue tied to strong financial market performance in 2025. However, DiNapoli cautioned that economic growth, particularly employment, is projected to slow and warned that federal actions and geopolitical conflicts may affect future tax collections.

Why it matters

The state's higher-than-expected tax collections provide a fiscal boost, but DiNapoli's warnings about economic headwinds suggest New York policymakers should exercise caution in budgeting and planning for the future. The report highlights the state's ongoing reliance on volatile revenue sources like personal income taxes and the need to build up reserves to weather potential downturns.

The details

The report shows that personal income tax (PIT) collections reached $67.4 billion, up $6.2 billion (10.1%) from the previous year, largely driven by stronger withholding and estimated payments. Sales and use tax revenue totaled $23.6 billion, an increase of $1.2 billion (5.5%) year-over-year. Business tax collections exceeded $33.2 billion, up $1.9 billion from the prior year, fueled by higher Pass-Through Entity Tax receipts. Overall state spending reached nearly $259 billion, an increase of $7.5 billion (7.2%) compared to the previous year.

  • The March State Cash Report covers State Fiscal Year 2025-26.
  • Tax collections for the fiscal year totaled $127.5 billion.

The players

Thomas P. DiNapoli

New York State Comptroller who issued the March State Cash Report.

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What they’re saying

“Economic growth, particularly employment, is projected to slow. Federal actions and geopolitical conflicts are injecting volatility into the economy that may affect future tax collections. State policymakers should utilize caution and ensure that the enacted budget accounts for these risks.”

— Thomas P. DiNapoli, New York State Comptroller

The takeaway

While New York's tax collections exceeded expectations, the state's top fiscal officer warned of potential economic headwinds that could impact future revenues. This highlights the need for prudent budgeting and building up reserves to prepare for potential downturns, rather than relying too heavily on volatile revenue sources like personal income taxes.