December Revenues

NASHVILLE, TN - Tennessee revenues exceeded budgeted estimates for the month of December. Department of Finance and Administration Commissioner Jim Bryson today reported that total December tax revenues were $2 billion, $82.7 million more than the budgeted estimate and $116.5 million more than December 2024. The total tax growth rate for the month was 6.09 percent.

General fund revenues were $84.7 million more than the December estimate, while the four other funds that share in state tax revenues were $2 million less than the estimates.

On an accrual basis, December is the fifth month in the 2025-2026 fiscal year.

"Total revenues in December exceeded our budget estimates, primarily due to strong corporate tax receipts," said Bryson. "Sales tax revenues for the month, which reflect November's retail activities-including Black Friday and post-Thanksgiving sales-performed largely as anticipated, showing steady growth. Corporate tax collections, including franchise and excise taxes, were particularly robust. Although fuel tax revenues were slightly below expectations, all other tax categories performed modestly better than our projections.

"Year-to-date, total revenues continue to remain above our adopted estimates. However, we will closely monitor revenue collections and expenditure trends for the remainder of the fiscal year."

On a year-to-date basis, August through December, total tax revenues are 1.33 percent greater than the budget estimate, or $117.6 million above expectations. When compared to this same period last year, total tax revenues have grown 5.22 percent or $444.1 million.

General fund revenues are 1.25 percent greater than the year-to-date budgeted estimate, or $91.8 million higher. Likewise, general fund collections compared to this same period last year have increased 4.93 percent or $349.3 million.

Individual tax performance compared to December 2025 Budgeted Estimates:

· Sales Taxes: Above estimate by 0.17% or $2.0 million

· Corporate Taxes (Franchise & Excise): Above estimate by 17.58% or $82.3 million

· Fuel Taxes: Below estimate by 2.23% or $2.4 million

· All other taxes: Above estimate by 0.53% or $0.8 million

Year-to-date performance compared to Budgeted Estimates:

· Sales Taxes: Above estimate by 2.06% or $127.0 million

· Corporate Taxes (Franchise & Excise): Below estimate by 4.45% or $57.7 million

· Fuel Taxes: Above estimate by 0.17% or $1.0 million

· All other taxes: Above estimate by 5.78% or $47.3 million

Individual tax performance compared to December 2024:

· Sales Taxes: Up 2.38% or $28.4 million

· Corporate Taxes (Franchise & Excise): Up 19.12% or $88.3 million

· Fuel Taxes: Down 2.54% or $2.7 million

· All other taxes: Up 1.69% or $2.5 million

Individual tax performance compared to August through December 2024:

· Sales Taxes: Up 4.23% or $256.1 million

· Corporate Taxes (Franchise & Excise): Up 12.56% or $138.0 million

· Fuel Taxes: Down 0.25% or $1.4 million

· All other taxes: Up 6.30% or $51.3 million

The budgeted revenue estimates for 2025-2026 are based on the State Funding Board's consensus recommendation from November 25, 2024, which was adopted by the first session of the 114th General Assembly in April 2025. These estimates also incorporate any revenue changes enacted during the 2025 General Assembly session. Monthly estimates for fiscal year 2025-2026 are available on the state's website at https://www.tn.gov/content/tn/finance/fa/fa-budget-information/fa-budget-rev.html.

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