NASHVILLE - The Tennessee Department of Finance and Administration Commissioner, Jim Bryson, announced today that revenues for February were $1.4 billion, which is $14.8 million more than February of last year but $26.2 million less than the budgeted estimate. The total growth rate for the month was 1.08 percent.

General fund revenues were $12.5 million less than the February estimate, while the four other funds that share in state tax revenues were $13.7 million less than the estimates.

On an accrual basis, February is the seventh month in the 2025-2026 fiscal year.

“February tax collections came in below budgeted estimates, due in part to the severe winter weather that affected much of the state,” said Bryson. “Widespread snow and ice reduced retail activity and fuel consumption, leading to lower-than-anticipated sales tax revenues. Corporate tax collections, including franchise and excise taxes, were slightly below expectations as well, and initial hemp tax revenues were modest as the industry transitions from prior tax structures.

“Despite these factors, most other tax categories performed better than projected, helping to offset a portion of the overall shortfall. As we move forward, we will continue to closely monitor revenue trends and broader economic conditions to ensure the state remains responsive to any changes that may impact future collections.”

On a year-to-date basis, August through February, total tax revenues are 0.97 percent greater than the budget estimate, or $118.6 million above expectations. When compared to this same period last year, total tax revenues have grown 4.61 percent or $546.5 million.

General fund revenues are 0.97 percent greater than the year-to-date budgeted estimate, or $98.8 million higher. Likewise, general fund collections compared to this same period last year have increased 4.18 percent or $412.4 million.

Individual tax performance compared to February 2026 Budgeted Estimates:
• Sales Taxes: Below estimate by 1.16% or $12.8 million
• Corporate Taxes (Franchise & Excise): Below estimate by 9.29% or $5.0 million
• Fuel Taxes: Below estimate by 3.47% or $3.3 million
• All other taxes: Below estimate by 3.23% or $5.1 million

Year-to-date performance compared to Budgeted Estimates:
• Sales Taxes: Above estimate by 1.27% or $110.8 million
• Corporate Taxes (Franchise & Excise): Below estimate by 3.42% or $56.0 million
• Fuel Taxes: Below estimate by 0.07% or $0.6 million
• All other taxes: Above estimate by 5.62% or $64.3 million

Individual tax performance compared to February 2025:
• Sales Taxes: Up 0.57% or $6.2 million
• Corporate Taxes (Franchise & Excise): Up 18.55% or $7.7 million
• Fuel Taxes: Down 1.84% or $1.7 million
• All other taxes: Up 1.76% or $2.6 million

Individual tax performance compared to August 2024 through February 2025:
• Sales Taxes: Up 3.78% or $322.6 million
• Corporate Taxes (Franchise & Excise): Up 10.46% or $149.8 million
• Fuel Taxes: Down 0.13% or $1.0 million
• All other taxes: Up 6.62% or $75.1 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.