Va. tax revenues up, exceed budget projections by $403.3 million

Governor Glenn Youngkin announced this week that Virginia’s general fund revenues have seen significant growth, with a 4.1 percent increase in October and an 8.6 percent rise in the first four months of Fiscal Year 2025, compared to the same periods last year. Year-to-date revenues for Fiscal Year 2025 currently exceed budgeted projections by $403.3 million.

October’s revenue collections, which primarily consist of payroll withholding and sales tax receipts, were stronger than expected. However, the month is generally not significant for other revenue sources, such as corporate income, nonwithholding taxes, and refunds.

“The Commonwealth continues to be ahead of plan driven by strong labor participation and low unemployment, despite slowing growth in the labor market,” said Governor Youngkin. “Virginia is financially strong and growing, and we remain focused on our pro-business, pro-growth agenda.”

Secretary of Finance Stephen Cummings also expressed confidence in the state’s economic health, noting, “Virginia’s economy continues to be strong through the first four months of Fiscal Year 2025. Revenue collections remain well above forecast, and strong individual income revenue sources, supported by continued job and wage growth, provide a solid base for continued revenue growth.”

As part of the state’s regular revenue forecasting process, the Governor’s Advisory Council on Revenue Estimates met on July 31, and the Joint Advisory Board of Economists met on October 8. The second meeting of the Governor’s Advisory Council on Revenue Estimates will be held on November 25. A revised revenue forecast for Fiscal Years 2025 and 2026 will be released alongside the Governor’s proposed budget on December 18.

For further details, the full October 2024 revenue report is available online here.