(The Center Square) – Tennessee will end fiscal year 2025-2026 with better than expected revenues but Finance Commissioner Jim Bryson said he is remaining cautious about the future.
From August 2025 to July, Tennessee’s tax revenues are 7.65% higher than the same period last year, a $1.7 billion increase, according to a news release from the Department of Finance and Administration. General fund collections are up 7.65%, or $1.4 billion.
The increases are the result of a strong fourth quarter, Bryson said.
“Better-than-expected sales tax growth, reflecting strong June consumer activity, and significant franchise and excise tax collections, drove higher revenue collections,” Bryson said in a statement. “Other taxes were near or above expectations.”
July is the final month of fiscal year 2026 on an accrual basis, according to the department. The tax growth for July was 18.39%, according to the department.
July tax revenues were $418.2 million above the budgeted estimate and $337.8 million more than July 2025, according to Bryson. The State Funding Board adopted the estimates in November 2025.
“While we are pleased to finish the fiscal year on such a strong note, it is important to remain cautious for the future,” Bryson said. “Some growth resulted from inflation, and F&E taxes vary significantly month to month. These corporate estimated payments may require adjustments once final tax liabilities are assessed.”
