(The Center Square) – Sales tax revenues indicate that Tennesseans are spending more money, but fuel tax revenues indicate they are staying home more.
Sales tax collections increased by $49.7 million, a 3.94% jump in June when compared to June of last year, according to the Tennessee Department of Finance and Administration. Fuel taxes are down $5.2 million, or 4.57%.
Overall, June revenues are $2.25 billion, a gain of $182.2 million from last year. The revenues are $281.8 million more than the amount budgeted by the State Funding Board.
“Sales tax receipts, which reflect consumer activity in May, were solid,” said Department of Finance and Administration Commissioner Jim Bryson in a statement. “Corporate tax revenues, including franchise and excise taxes, performed even better and accounted for much of the month’s surplus. However, fuel tax collections declined from the same period last year, while all other taxes combined exceeded expectations.”
Year-to-date, which covers August through June, total tax revenues are $764.4 million above forecast and 6.68% or $1.4 billion higher when compared to last year’s collections. June is the 11th month in the 2025-26 fiscal year on an accrual basis, according to the department.
“With one month of revenue reporting remaining in the 2025-2026 fiscal year, the state is on track to exceed the revenue estimates established for the year,” Bryson said. “Nevertheless, we will continue to monitor economic conditions closely.”
The largest revenue growth is in corporate tax income, which is up 16.14%, a $123.1 million increase over last June and 39.62% above estimates.
Tennessee’s Quarterly Indicator report shows 25,000 new businesses filed with the Secretary of State during the first quarter of 2026. The new business filings represent a 20.6% increase compared with the first quarter of 2025, a new record, Secretary of State Tre Hargett said during a call with reporters on July 8. The number of annual reports filed also set a new record with a 30.4% increase over last year.
