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NASHVILLE, TN (SPECIAL TO WLAF)- Tennessee revenues exceeded budgeted estimates for the month of September. Department of Finance and Administration Commissioner Jim Bryson today reported that total September tax revenues were $2.2 billion, $20.6 million more than the budgeted estimate and $1.3 million more than September 2024. The total tax growth rate for the month was 0.06 percent.
General fund revenues were $14.3 million more than the September estimate, while the four other funds that share in state tax revenues were $6.3 million more than the estimates.
On an accrual basis, September is the second month in the 2025-2026 fiscal year.
“September’s total tax collections surpassed our budgeted expectations for the month,” Bryson said. “Sales tax revenues, which reflect August’s taxable sales activity, were slightly above estimates and showed solid growth compared to the same period last year. However, corporate tax collections, or franchise and excise taxes, fell short of expectations. All other combined revenues exceeded estimates.
“We are encouraged that overall revenues are aligning with our projections, but we will continue to monitor collections and spending carefully to ensure the budget remains balanced.”
On a year-to-date basis, August through September, total tax revenues are 0.96 percent greater than the budget estimate, or $36.2 million above expectations. When compared to this same period last year, total tax revenues have grown 1.57 percent or $59.0 million.
General fund revenues are 0.73 percent greater than the year-to-date budgeted estimate, or $22.3 million higher. Likewise, general fund collections compared to this same period last year have increased 0.70 percent or $21.4 million.
Individual tax performance compared to September 2025 Budgeted Estimates:
Sales Taxes: Above estimate by 1.90% or $23.6 millionCorporate Taxes (Franchise & Excise): Below estimate by 1.56% or $10.3 million
Fuel Taxes: Above estimate by 1.41% or $1.6 million
All other taxes: Above estimate by 3.38% or $5.7 million
Year-to-date performance compared to Budgeted Estimates:
Sales Taxes: Above estimate by 1.96% or $49.1 million
Corporate Taxes (Franchise & Excise): Below estimate by 3.78% or $26.6 million
Fuel Taxes: Above estimate by 2.12% or $4.7 million
All other taxes: Above estimate by 2.61% or $8.9 million
Individual tax performance compared to September 2024:
Sales Taxes: Up 2.84% or $34.9 million
Corporate Taxes (Franchise & Excise): Down 5.83% or $40.0 million
Fuel Taxes: Up 2.46% or $2.7 millionAll other taxes: Up 2.16% or $3.7 million
Individual tax performance compared to August through September 2024:
Sales Taxes: Up 4.01% or $98.3 million
Corporate Taxes (Franchise & Excise): Down 6.84% or $49.7 million
Fuel Taxes: Up 1.75% or $3.9 million
All other taxes: Up 1.87% or $6.5 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. (WLAF NEWS PUBLISHED-10/17/2025-6AM)