NASHVILLE - Tennessee revenues exceeded budgeted estimates for the month of March. The Department of Finance and Administration Commissioner Jim Bryson today reported that total March tax revenues were $1.7 billion, $69.2 million more than the budgeted estimate and $119.2 million more than March 2025. The total tax growth rate for the month was 7.46 percent.

General fund revenues were $60.1 million more than the March estimate, while the four other funds that share in state tax revenues were $9.1 million more than the estimates.

On an accrual basis, March is the eighth month in the 2025-2026 fiscal year.

“March tax revenues grew at a steady pace, indicating resilient economic activity,” Bryson said. “Growth in sales tax receipts, reflecting consumer activity from February, showed a strong rebound following slower growth due to weather events earlier this year. Corporate tax revenues, or franchise and excise taxes, also rose significantly, while all other tax categories combined were higher than budgeted estimates.

While we are pleased with overall tax growth this fiscal year, we will continue to monitor economic activity and revenue trends to maintain fiscal stability.”

On a year-to-date basis, August through March, total tax revenues are 1.35 percent greater than the budget estimate, or $187.8 million above expectations. When compared to this same period last year, total tax revenues have grown 4.95 percent or $665.8 million.

General fund revenues are 1.37 percent greater than the year-to-date budgeted estimate, or $158.9 million higher. Likewise, general fund collections compared to this same period last year have increased 4.54 percent or $510.2 million.

Individual tax performance compared to March 2026 Budgeted Estimates:

• Sales Taxes: Above estimate by 2.39% or $26.3 million
• Corporate Taxes (Franchise & Excise): Above estimate by 11.87% or $32.8 million
• Fuel Taxes: Above estimate by 4.11% or $3.7 million
• All other taxes: Above estimate by 3.57% or $6.4 million

Year-to-date performance compared to Budgeted Estimates:

• Sales Taxes: Above estimate by 1.39% or $137.2 million
• Corporate Taxes (Franchise & Excise): Below estimate by 1.21% or $23.2 million
• Fuel Taxes: Above estimate by 0.37% or $3.1 million
• All other taxes: Above estimate by 5.34% or $70.7 million

Individual tax performance compared to March 2025:

• Sales Taxes: Up 5.92% or $63.2 million
• Corporate Taxes (Franchise & Excise): Up 13.56% or $37.0 million
• Fuel Taxes: Down 3.09% or $3.0 million
• All other taxes: Up 13.61% or $22.1 million

Individual tax performance compared to August 2024 through March 2025:

• Sales Taxes: Up 4.02% or $385.8 million
• Corporate Taxes (Franchise & Excise): Up 10.96% or $186.8 million
• Fuel Taxes: Down 0.47% or $4.0 million
• All other taxes: Up 7.49% or $97.2 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.