Georgia reports slight decline in July net tax revenues at start of fiscal year

The State of Georgia reported a decrease in net tax collections for July, the first month of fiscal year 2026. According to data released by the governor’s office, total net tax revenues reached $2.49 billion, which is $70.1 million or 2.7% less than July 2024.

Officials attribute part of this decline to a 20 basis point (3.7%) reduction in individual and corporate tax rates compared to the same period last year.

In detail, Individual Income Tax collections increased slightly by $8.6 million or 0.7%, reaching nearly $1.26 billion for the month. The report noted that “Individual Income Tax refunds issued (net of voided checks) decreased by $7 million or 6.4%. Income Tax Withholding payments for July declined by $31.6 million, or 2.5%, from FY 2025. Individual Income Tax Return payments increased by $36.4 million, or 104.2%, over July 2024 (FY ’25). All other Individual Income Tax categories, including Estimated payments, were down a combined $3.2 million.”

Gross Sales and Use Tax collections totaled about $1.61 billion in July, marking an increase of $19.3 million or 1.2% over the previous year; however, Net Sales and Use Tax was down by $12.9 million or 1.6%. Adjusted distributions to local governments rose to $808.6 million—$31.9 million more than last year—and Sales Tax refunds grew slightly.

Corporate Income Tax saw a notable drop: “Corporate Income Tax collections for July totaled $53.7 million, which was a decrease of $70.1 million, or 56.6%, from FY 2025 when net Corporate Tax revenues totaled nearly $123.9 million.” Contributing factors included higher refund issuances and lower estimated payments.

Motor Fuel Taxes brought in an additional $3.2 million compared to last year—a rise of 1.7%. Collections from Motor Vehicle Tag & Title Fees also increased by almost $6 million (19%), while Title ad Valorem Tax receipts went up nearly $6.6 million (9%).