September Revenues

NASHVILLE, TN - 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 $2.5 billion, $335.9 million more than the budgeted estimate and $331.9 million more than September 2025. The total tax growth rate for the month was 15.09 percent.

General fund revenues were $337.0 million more than the September estimate, while the four other funds that share in state tax revenues were $1.1 million less than the estimates.

On an accrual basis, September is the second month in the 2026-2027 fiscal year.

"September revenues outperformed budget expectations, driven primarily by strong corporate tax collections," Bryson said. "Corporate tax revenues, also known as franchise and excise taxes, recorded significant growth, driven by a sharp increase in quarterly estimated tax payments. Sales tax revenues, reflecting August's taxable sales activity, delivered moderate year-over-year growth and exceeded forecasted levels. Fuel tax collections were modestly higher than September 2025 and finished slightly above projections. Revenues from all other sources came in just under monthly estimates but remained close to prior-year collections.

"While we are encouraged by the alignment of overall revenues with our financial projections, we will continue to closely monitor both collections and expenditures to ensure the budget remains balanced."

On a year-to-date basis, August through September, total tax revenues are 10.18 percent greater than the budget estimate, or $390.5 million above expectations. When compared to this same period last year, total tax revenues have grown 11.04 percent or $420.0 million.

General fund revenues are 12.24 percent greater than the year-to-date budgeted estimate, or $382.1 million higher. Likewise, general fund collections compared to this same period last year have increased 13.21 percent or $408.9 million.

Individual tax performance compared to September 2026 Budgeted Estimates:

• Sales Taxes: Above estimate by 2.85% or $36.1 million
• Corporate Taxes (Franchise & Excise): Above estimate by 49.73% or $311.1 million
• Fuel Taxes: Above estimates by 1.62% or $1.8 million
• All other taxes: Below estimate by 7.06% or $13.2 million

Year-to-date performance compared to Budgeted Estimates:

• Sales Taxes: Above estimate by 2.79% or $71.6 million
• Corporate Taxes (Franchise & Excise): Above estimate by 50.19% or $335.2 million
• Fuel Taxes: Below estimates by 2.79% or $6.3 million
• All other taxes: Below estimate by 2.70% or $10.0 million

Individual tax performance compared to September 2025:

• Sales Taxes: Up 3.30% or $41.7 million
• Corporate Taxes (Franchise & Excise): Up 44.83% or $289.9 million
• Fuel Taxes: Up 1.40% or $1.6 million
• All other taxes: Down 0.71% or $1.2 million

Individual tax performance compared to August 2024 through September 2025:

• Sales Taxes: Up 3.62% or $92.4 million
• Corporate Taxes (Franchise & Excise): Up 48.14% or $325.9 million
• Fuel Taxes: Down 2.90% or $6.6 million
• All other taxes: Up 2.35% or $8.3 million

The budgeted revenue estimates for 2026-2027 are based on the State Funding Board's consensus recommendation from November 24, 2025, which was adopted by the second session of the 114th General Assembly in May 2026. These estimates also incorporate any revenue changes enacted during the 2026 General Assembly session. Monthly estimates for fiscal year 2026-2027 are available on the state's website.

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These are the revenue tables.