RICHMOND, VA - Governor Abigail Spanberger today announced that January revenues declined 1.4 percent from the previous January. On a fiscal year-to-date basis, through the first seven months of Fiscal Year 2026, collections have grown 6.9 percent - 2.9 percent ahead of the forecast. Growth has been driven by strong individual income and strong sales tax receipts, while corporate income taxes have lagged.

"As expected, revenues fell slightly in January, while year-to-date collections remain above last year's levels," said Governor Abigail Spanberger. "Over the past several months, employment growth has slowed significantly across the country and working families are feeling the squeeze. I look forward to working with the General Assembly to make our Commonwealth more affordable for all Virginians."

"With one less deposit day compared to last January, collections were expected to be lower this month," said Secretary of Finance Mark Sickles. "But despite January's decline, year-to-date collections are ahead of last year by 6.9 percent and ahead of projections by 2.9 percent."

Net individual income tax revenues increased 0.3 percent for the month compared to January 2025. On a fiscal year-to-date basis, net individual income tax collections are up 10.4 percent. Collections of sales and use taxes, reflecting December sales, increased 6.9 percent in January and are up 5.8 percent year-to-date. Corporate income tax receipts have dampened this growth, declining 17.6 relative to last year.

Compared to the official forecast assumed in HB30 - the pending two-year budget, revenues are ahead of expectation by 2.9 percent. While there is reason for cautious optimism in Virginia revenues, we must continue to be responsible and remember the need for structural integrity of the budget.

The full January 2026 revenue report is available here.

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