Tennessee April Revenues Exceed Budgeted Estimates
May 15, 2026, 4:12 pm

NASHVILLE, TN - Tennessee revenues exceeded budgeted estimates for the month of April. Department of Finance and Administration Commissioner Jim Bryson today reported that total April tax revenues were $3 billion, $67.5 million more than the budgeted estimate and $258.9 million more than April 2025. The total tax growth rate for the month was 9.51 percent.

General fund revenues were $63.2 million more than the April estimate, while the four other funds that share in state tax revenues were $4.3 million more than the estimates.

On an accrual basis, April is the ninth month in the 2025-2026 fiscal year.

“April tax revenues grew significantly, exceeding our monthly budget estimates,” Bryson said. “Both sales and corporate (franchise and excise) tax collections were strong. Sales tax receipts, reflecting March consumer activity, were above expectations, while corporate taxes performed largely in line with projections. All other tax categories combined also surpassed budgeted estimates.

While revenues from August through April have exceeded our budget estimates, we will continue to closely monitor revenue and spending trends through the remainder of the fiscal year.”

On a year-to-date basis, August through April, total tax revenues are 1.52 percent greater than the budget estimate, or $255.3 million above expectations. When compared to this same period last year, total tax revenues have grown 5.72 percent or $924.7 million.

General fund revenues are 1.56 percent greater than the year-to-date budgeted estimate, or $222.1 million higher. Likewise, general fund collections compared to this same period last year have increased 5.44 percent or $744.7 million.

Individual tax performance compared to April 2026 Budgeted Estimates:

• Sales Taxes: Above estimate by 3.70% or $48.2 million
• Corporate Taxes (Franchise & Excise): Above estimate by 0.45% or $5.3 million
• Fuel Taxes: Below estimates by 3.42% or $3.8 million
• All other taxes: Above estimate by 5.22% or $17.9 million

Year-to-date performance compared to Budgeted Estimates:

• Sales Taxes: Above estimate by 1.66% or $185.4 million
• Corporate Taxes (Franchise & Excise): Below estimate by 0.58% or $17.9 million
• Fuel Taxes: Below estimates by 0.07% or $0.7 million
• All other taxes: Above estimate by 5.32% or $88.6 million

Individual tax performance compared to April 2025:

• Sales Taxes: Up 6.43% or $81.6 million
• Corporate Taxes (Franchise & Excise): Up 15.18% or $153.0 million
• Fuel Taxes: Up 0.75% or $0.8 million
• All other taxes: Up 6.96% or $23.5 million

Individual tax performance compared to August 2024 through April 2025:

• Sales Taxes: Up 4.30% or $467.4 million
• Corporate Taxes (Franchise & Excise): Up 12.53% or $339.8 million
• Fuel Taxes: Down 0.33% or $3.2 million
• All other taxes: Up 7.38% or $120.7 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.

On November 24, 2025, the State Funding Board reconvened and recommended updated revenue projections for the 2025–2026 fiscal year. The Board adopted revised growth ranges of 1.59 percent to 2.04 percent for total taxes and 0.72 percent to 1.32 percent for general fund revenues. Both the Board’s upper-limit projection and the growth assumptions outlined in Governor Lee’s budget proposal for the second session of the 114th General Assembly reflect no changes to the Department of Revenue’s original state tax revenue estimates for the 2025–2026 fiscal year.

On April 16, 2026, during the second session of the 114th General Assembly, the Legislature passed the 2026–2027 budget, incorporating the revised revenue ranges recommended by both the Governor and the Funding Board. The enrolled bill is now awaiting the Governor’s signature.