Comptroller: Tax revenues outpace projections as federal cuts loom over budget
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ALBANY, N.Y. (NEXSTAR) — New York collected $117.5 billion in taxes for the April 1, 2024 to March 31, 2025 fiscal year. Comptroller Thomas DiNapoli reported Monday that the total rose 10.4% from the prior year, and outpaced predictions by $2.1 billion.
Personal income tax led the increase in revenue for New York, totaling $61.2 billion. That's up $7.4 billion, or 13.7%, from last year. Those gains came from higher paycheck withholdings and larger estimated payments tied to end‑of‑year bonuses, according to DiNapoli's March State Cash Report.
Meanwhile, sales and use tax revenue for the state reached $22.4 billion. That's up $484.4 million from the 2023 to 2024 fiscal year—or 2.2%—but still fell short of forecasts from the Division of the Budget by some $139 million.
But business taxes beat DOB projections by $2 billion, totaling $31.4 billion. Compared to the prior year, that's a $3.7 billion or 13.3% increase. Collections from one business tax—the Pass Through Entity Tax—grew by $3.8 billion alone.
State spending hit $241.5 billion in the 2024-2025 fiscal year, representing an increase of $6.6 billion, or 2.8%, over the previous one. The General Fund—New York's checking account—closed out the fiscal year with a $56.9 billion balance, $10.6 billion higher than at the start of the fiscal year.
DiNapoli said the increases came from greater personal income and business taxes, reflecting strong financial markets and steady job growth in 2024. The "extra" money will let lawmakers avoid raising taxes.
Still, "Policy decisions at the federal level, such as tariffs and federal aid cuts, are currently causing economic uncertainty,” DiNapoli said. "The heightened risks they pose should be considered as the enacted budget for [state fiscal year] 2025-26 is finalized."
State officials from the governor's office, the comptroller's office, and DOB, projected that New York would receive about $90 billion from the federal government in 2025. The biggest portion would go to health care for low-income New Yorkers, with the rest spread across schools, welfare, roads, and public safety.
| Category | Fiscal Year 2024–25 | Fiscal Year 2025–26 |
|---|---|---|
| Medicaid | $56.1 to $56.8 billion | $57.6 billion |
| Health and social welfare | $21.3 to $22.2 billion | $21.6 to $22.3 billion |
| Education | $4.5 to $9.2 billion | $4.4 to $9.2 billion |
| Transportation | $2.4 to $2.5 billion | $2.8 to $2.9 billion |
| Public protection and all other | $3 to $5.6 billion | $3 to $3.2 billion |
| Total | $87.2 to $96.3 billion | $89.4 to $96.3 billion |
The comptroller's office said a full accounting—an Annual Comprehensive Financial Report—is due in September.