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Indiana has recorded stronger-than-expected tax collections over the first quarter of the fiscal year.
(Getty Images)Indiana tax collections are running $270 million ahead of projections after three months of the fiscal year, according to the latest monthly revenue report.
The revenue is even stronger compared to the prior year’s first quarter — about $532 million, or a 10.7% increase.
“Our state’s monthly revenue report once again exceeds expectations — proof that the strong, pro-growth foundation built under President Trump continues to fuel our economy,” said Gov. Mike Braun. “We’ll keep building on that momentum to deliver results for Hoosiers through fiscal responsibility and conservative leadership.”
The fiscal year runs from July 1, 2025, to June 30, 2026.
Revenue for Indiana’s general fund for September was $313.6 million higher than the same time last year — a 15.6% increase. And it was $131 million more than expected under the latest revenue forecast.
Sales tax revenue has been especially strong — up 6% in September and 9% above the prior year.
Individual income taxes over the first three months of the fiscal year have grown $205 million over the prior year, or nearly 12%.
The forecast was downgraded by more than $2 billion in early April — leading to major cuts in the state budget. Agencies generally have been forced to reduce their spending by 10%. That has led to slashing Indiana’s child care programs and laying off state workers, among other cuts.
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