Updates About Revenue Reports

The Senate Fiscal Agency recently released the monthly revenue report for December 2025. The report detailed that tax collections were $2.9 billion, $328.6 million below the expected number and 6.5% lower than December 2024.

Corporate Income Tax (CIT) collections came in $48.3 million higher than predicted, and net income tax revenue was also $13.8 million above expectations. Despite these higher amounts, lower revenue from Individual Income Tax (IIT) withholding and sales taxes, along with higher Michigan Business Tax (MBT) refunds, significantly outweighed the gains from the CIT and income tax. The largest contributor to the lower overall total was MBT collections, as refunds far outpaced payments, resulting in collections of $394.2 million compared to a projected negative $70.0 million. It’s important to note that MBT refunds are usually processed in large groups and typically get processed in January; however, this Fiscal Year they were processed in December, contributing to the large difference between projected and actual refund amounts.

So far, the year-to-date actual revenue compared to predicted for both the General Fund (GF) and School Aid Fund are down. The GF is below expectations by $178.1 million whereas the School Aid Fund is down by $13.0 million.

Revenue collections from major taxes and lottery were slightly higher than expected for November, according to a recent November Revenue Report released by the Senate Fiscal Agency (SFA). Compared to November last year, the revenue totals reached $3.0 billion and are up 3%. Revenue from the State Education Tax (SET), individual income tax (IIT) withholding, and Michigan Business Tax (MBT) all came in higher than expected. Net income tax revenue and sales tax revenue were also elevated compared to last year, up 8.3% and 3.6%, respectively. However, net revenue from the repealed Single Business Tax, Michigan Business Tax, and Corporate Income Tax (CIT) collections were collectively 47% lower than last November.

Still, collections to the General Fund came in $95.8 million over expectations. The School Aid Fund also came in at $44.1 million above projections. Because November is the first month for tax collection for the fiscal year, these figures also represent the year-to-date actual vs predicted revenue.

Revenue collections from major taxes and lottery were slightly higher than expected for October, according to a recent revenue report released by the Senate Fiscal Agency (SFA). Compared to October last year, revenue totals reached $4.3 billion and are up nearly 6%. Revenue from the State Education Tax (SET), individual income tax (IIT) withholding, and use tax all contributed to the high outcomes. Net income tax revenue also experienced a near 15% increase from October last year. However, net revenue from sales tax, the repealed Single Business Tax, Michigan Business Tax, and Corporate Income Tax (CIT) collections were all below the forecasted amounts by $92.5 million.

Collections for the General Fund came in $22.7 million under expectations. However, the School Aid Fund saw better performance with collections $52.8 million above anticipated figures. For the Fiscal YTD revenue, the General Fund is down $289.7 million from projections and the School Aid Fund is up $129.4 million.