Governor Spanberger Announces Through March General Fund Revenues Exceed Official Forecast by 3.2 Percent

RICHMOND, VA - Governor Abigail Spanberger today announced that March revenues grew 14.3 percent compared to March 2025. On a fiscal year-to-date basis, through the first nine months of Fiscal Year 2026, collections have grown 7.4 percent. Growth has been driven by strong individual income tax and strong sales tax receipts, while corporate income taxes have lagged. Compared to the official forecast, revenues are ahead of expectations by 3.2 percent.

"While revenues continue to exceed forecast, the broader economic environment is not showing the same strength. The job market has softened. Virginia's unemployment rate has risen half a point over the last year while employment in Virginia has fallen compared to last March," said Governor Abigail Spanberger. "Ongoing instability and conflict in the Middle East are driving up gas prices and putting additional strain on Virginians. These and other pressures, reflected in record low consumer sentiment, are contributing to a more fragile outlook for the months ahead."

"March revenues were again driven by volatile revenues sources, meaning nonwithholding receipts and lower refunds than anticipated," said Secretary of Finance Mark Sickles. "Next month, we will have a much better understanding of the impact of refunds on revenues as more Virginians file their taxes. Continued caution is still advised given the uncertainty caused by conflict in the Middle East and the consequent rise in fuel costs. At the same time, several economic indicators are softening, and that calls for continued caution as we look ahead."

On a fiscal year-to-date basis, General Fund revenues have grown 7.4 percent and are ahead of the official forecast by 3.2 percent. As a result, the largest component of Commonwealth revenues - net individual income tax collections, which includes nonwithholding income tax and refunds - are up 9.9 percent year-over-year. Payroll withholding revenues grew 8.4 percent year-over-year in March and are up 6.0 percent year-to-date.

The full March 2026 revenue report is available here.

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