Virginia’s general fund revenues exceeded expectations in the first quarter of Fiscal Year 2026, fueled by steady job growth and resilient consumer spending, state officials said Tuesday.
Revenues increased 5.1% from June through September compared with the same period last year, while September collections alone rose 2.7% year-over-year. Both income tax withholding and sales tax receipts were higher than forecast, contributing to a year-to-date gain nearly 8% above projections, according to the Department of Finance.
“Three months into this fiscal year, Virginia is in an incredibly strong financial position, with increased revenues from job growth and record capital investment,” Governor Glenn Youngkin said in a statement. “The financial strength of the Commonwealth underpins our ability to invest in key priorities like education, health care and law enforcement—all while lowering costs for families and providing Virginians with historic tax relief.”
The governor’s office reported that general fund collections for September exceeded the official forecast by nearly 10%, marking continued momentum ahead of the next biennial budget proposal expected in December.
Finance officials said the revenue gains reflect continued confidence in Virginia’s labor market and spending patterns despite national economic uncertainty. The general fund supports core state programs including public education, health care and public safety.
“Virginia’s fiscal foundation remains solid,” the Department of Finance said. “Sustained strength in both income and sales taxes demonstrates ongoing economic resilience.
