Virginia reports slight decline in January revenues

RICHMOND, Va. (WRIC) -- Gov. Abigail Spanberger (D) announced that January 2026 state revenues dropped, but emphasized that annual growth continues.

The governor's office announced in a press release on Thursday, Feb. 12, that Virginia's January general fund revenues had declined from last year, while year-to-date collections remain above 2025's levels due to high individual income and sales tax receipts.

According to a release from the governor's office, on a fiscal year-to-date basis, through the first seven months of fiscal year 2026, collections have grown 6.9% -- 2.9% ahead of the forecast.

“As expected, revenues fell slightly in January, while year-to-date collections remain above last year’s levels,” Spanberger said. “Over the past several months, employment growth has slowed significantly across the country and working families are feeling the squeeze. I look forward to working with the General Assembly to make our Commonwealth more affordable for all Virginians.”

Corporate income taxes have lagged, though growth is due to high individual income and strong sales tax receipts, per the governor's office.

Net individual income tax revenues increased 0.3% for this month compared to January 2025, per Spanberger's office.

On a fiscal year-to-date basis, net individual income tax collections are up 10.4%. Collections of sales and use taxes that show December sales increased 6.9% in January and are up 5.8% year-to-date, the governor's office said.

Corporate income tax receipts have declined 17.6% compared to last year.