Updates About Revenue Reports

The Senate Fiscal Agency (SFA) recently released the Monthly Revenue Report for May 2026. The report detailed that tax collections came in at $2.7 billion, $368.4 million above expectations and 3.8% higher compared to last May.

Leading the pack in revenue was net income tax, which totaled $1.2 billion, and came in $214.3 million higher than expected. Combined sales and use tax was a close second bringing in $1.1 billion, a slight decline from last May, but still coming in $52 million above expectations. Two surprises, first collections from the repealed Single Business Tax, Michigan Business Tax (MBT), and Corporate Income Tax (CIT) which was 89% higher than last year, totalling $146.6 million. Second, Individual Income Tax refunds were $147.1 million lower than expected.

General Fund (GF) collections were $285.1 million above the estimated number, and the School Aid Fund exceeded the predicted number by $72.9 million.

In other economic news, the Michigan Department of Technology, Management and Budget has released its latest jobs report. Michigan’s unemployment has risen to 5.1% compared to the national average of 4.3%. Despite this, Michigan has added over 17,000 payroll workers since February, with manufacturing seeing the largest increase. Since last May, Michigan has experienced its largest job losses in the transportation and utilities sector, which lost 9,000 jobs, followed by manufacturing (-8,000) and leisure and hospitality (-6,000).

Today, state economic leaders presented updated revenues during the May Consensus Revenue Estimating Conference (CREC). The report showed Michigan’s revenues are slightly stronger than originally predicted. Current fiscal year (FY26) revenues are up $307.3 million compared to January projections, and FY27 revenues are up $173.8 million, mainly due to stronger Income Tax and Use Tax collections. The School Aid Fund (SAF) remains stable, while the General Fund is still lagging but has improved since the January CREC. This improvement can partly be attributed to tax policy changes shifting revenue to the SAF. These updated estimates will guide lawmakers as they negotiate the FY27 budget ahead of the July 1 deadline.

For a more in depth review of the May CREC, you may access the presentations and materials here.

The Senate Fiscal Agency (SFA) recently released the Monthly Revenue Report for February 2026. The report detailed that tax collections came in at $1.6 billion, $225.2 million above expectations and 23.1% higher than February 2025.

Leading the pack in revenue were collections from the sales and use tax, which totaled $882.2 million. Despite bringing in the most revenue, collections were still $46.3 million below the predicted level. Net income tax collections exceeded expectations by $248.4 million for a total of $383.0 million in revenue. A large part of the overperformance was due to individual income tax refunds coming in $159.2 million lower than the predicted number. Net revenue from the Michigan Business Tax (MBT), Corporate Income Tax (CIT), as well as the repealed Single Business Tax totaled $38.7 million, $15.4 million more than expected.

General Fund (GF) collections were $237.6 million above the estimated number, and School Aid Fund revenue lagged behind by $16.4 million. So far, the year-to-date actual revenue compared to predicted for both the General Fund (GF) and School Aid Fund are up. The GF is above expectation by $268.5 million whereas the School Aid Fund is up by $56.5 million.