Updates About Revenue Reports

Recently, The Senate Fiscal Agency (SFA) released the Monthly Revenue Report for August 2026. The state brought in $3.0 billion, $150 million higher than the projected number, and 0.5% more than August 2025. The $150 million better-than-expected collections were fairly divided between the General Fund and School Aid Fund, coming in at $73.1 million and $68.8 million respectively, with the remaining being directed into other funds.

For August 2026, the largest source of revenue was the combined sales and use tax collections, which came in at $1.2 billion. Despite being atop all other revenue streams, the combined receipts were down 5.6% from August 2025, partly due to the removal of the sales tax for motor fuel. Trailing just behind were revenues from the net income tax coming in at $1.1 billion, 9.2% higher than August of last year. Together, the two collections beat expectations by $123.6 million. Strong income tax withholding was also a major contributor, increasing 11.5% from August 2025 and coming in $92.8 million above forecast.

So far, the revenue collections in 2026 for the General Fund have been $532.4 million higher than expected and the School Aid Fund has beaten projections by $263.3 million. These numbers indicate that, for now, Michigan’s current fiscal situation for 2026 is surprisingly healthy.

Recently, The Senate Fiscal Agency (SFA) released the Monthly Revenue Report for July 2026. Total tax collections totalled $3.1 billion, $174 million above what was expected and 6.9% higher than July 2025.

The revenue for both the net income tax and the combined sales and use tax came in at $1.2 billion. The combined sales and use tax number beat expectations by $106.9 million, whereas net income tax was slightly behind beating expectations by $93.3 million.

The repealed Single Business Tax, Michigan Business Tax (MBT), and Corporate Income Tax (CIT) generated $140.0 million in net revenue. The combined collections were $39.6 million below the predicted number. Revenue from CIT collections caused most of the drag, as it lagged behind the predicted number by $43.1 million.

General Fund (GF) collections were $75.3 million above the forecasted number, and the School Aid Fund exceeded expectations by $82.2 million. So far, the year-to-date collections for the GF sits at $459.3 million, and for the School Aid Fund, $194.5 million.

The Senate Fiscal Agency (SFA) recently released the Monthly Revenue Report for June 2026. Tax collections came in at $3.4 Billion, $163 million above what was expected and 3.1% higher than last June.

The largest source of revenue was from net income taxes, totaling $1.5 billion. Despite bringing in the most revenue, collections were $25.3 million below the expected number. Not far behind in revenue were combined sales and use tax collections coming in at $1.2 billion, $73.4 million above expectations. The repealed Single Business Tax, Michigan Business Tax (MBT), and Corporate Income Tax (CIT) generated $333.0 million in net revenue. The combined collections were $109.7 million higher than the predicted number largely due to CIT collections and less MBT refunds being claimed.

General Fund (GF) collections were $112.9 million above the estimated number, and the School Aid Fund exceeded the predicted number by $39.4 million. So far the year-to-date collections for the GF sits at $384 million, and for the School Aid Fund, $112.2 million.

In other economic news, the Michigan Health and Hospital Association released their healthcare sector report for 2024. The report shows that the healthcare industry in Michigan is the largest private-sector employer, supporting more than 1 million jobs. According to the report, the healthcare industry in Michigan created $115 billion in economic value and $25.1 billion in tax revenue during the 2024 fiscal year. The full report can be found here.