HARRISBURG, PA — Pennsylvania collected more tax revenue than expected in March, strengthening the state’s financial position with three months remaining in the fiscal year.
What This Means for You
- State revenue is running ahead of projections, improving budget stability
- Strong tax collections may reduce pressure for spending cuts or tax increases
- Economic activity remains steady across key sectors
The state reported $6.5 billion in General Fund revenue for March, exceeding expectations by $91.9 million, or 1.4 percent. The General Fund is the state’s primary account used to pay for services such as education, public safety, and health programs.
Fiscal year-to-date collections total $34.9 billion, which is $473.8 million, or 1.4 percent, above estimates.
Strong Performance in Major Tax Categories
Officials said corporate tax collections drove much of the monthly gain.
“March is our biggest month for collections from corporation taxes, so it’s very encouraging to see those collections coming in over estimate this month,” Revenue Secretary Pat Browne said.
Corporate tax revenue totaled $3.2 billion in March, exceeding projections by $56.8 million. Year-to-date collections reached $5.9 billion, or $60.7 million above estimate.
Sales tax revenue for March totaled $1.2 billion, surpassing expectations by $42.4 million. Year-to-date sales tax collections reached $11.4 billion, or $57.1 million above projections.
Personal income tax revenue was $1.7 billion for the month, $24.1 million above estimate, bringing the year-to-date total to $13.3 billion, or $210.7 million above expectations.
Additional Revenue Sources Show Mixed Results
Inheritance tax collections reached $180.3 million in March, exceeding estimates by $14.9 million. Year-to-date collections total $1.4 billion, or $73.3 million above projections.
Realty transfer tax revenue totaled $67.4 million for the month, $16.3 million above estimate. The fiscal-year total stands at $477.3 million, or $33.5 million above expectations.
Other General Fund taxes — including cigarette, alcohol, and gaming taxes — totaled $19.4 million in March, falling $6.4 million below estimate. However, year-to-date collections for those categories remain $36.3 million above projections.
Non-tax revenue, which includes fees and other income, totaled $155.8 million for the month, $56.1 million below estimate. Year-to-date non-tax revenue is slightly above projections by $2.3 million.
Motor License Fund Also Exceeds Estimates
The Motor License Fund, which supports transportation infrastructure through fuel taxes and fees, collected $243.9 million in March, exceeding expectations by $20.7 million.
Fiscal year-to-date collections for the fund total $2.3 billion, or $36.1 million above estimate.
Officials Cite Economic Stability
State officials said the overall revenue performance reflects continued economic growth.
“Our overall collections are also nearly $500 million over estimate, which puts us in a very strong position with three months to go in the fiscal year,” Browne said.
Budget Secretary Zachary Reber said the results reflect broader economic trends tied to state investments.
“The positive results we’ve seen this fiscal year from our revenue collections are further evidence that our economy is growing,” Reber said.
Officials said revenue trends will continue to be monitored as the fiscal year approaches its end.
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