Atlanta, Georgia – In the first month of the new fiscal year, Georgia’s net tax revenues fell by 2.7% compared to the same month previous year. The office of Governor Brian Kemp said that collections in July 2026 were $2.49 billion, which is $70.1 million less than the $2.56 billion collected in July 2025. Officials said that part of the drop is because of a 20-basis-point cut in both individual and corporate tax rates that had already been authorized. This equals to 3.7%.
Some of the state’s main sources of income showed increases, while others saw big drops. Individual Income Tax collections were a little higher than they were last July, going up by $8.6 million, or 0.7%, to around $1.26 billion. The rise was partly due to a $36.4 million rise in return payments, which more than doubled last year’s amount. Refunds went reduced by $7 million, and payments that were held back went down by $31.6 million, or 2.5%. Estimated payments and other smaller categories were all lower by a total of $3.2 million.
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The results for Sales and Use Tax were also mixed. Gross collections were roughly $1.61 billion, which is $19.3 million, or 1.2%, more than previous year. However, after distributions to local governments and refunds, net Sales and Use Tax revenue slipped by $12.9 million, or 1.6%. The state’s contribution sent local governments $808.6 million, which is $31.9 million more than last year. Refunds went up by $0.3 million.
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Corporate Income Tax collections were the biggest reason why July’s totals were so low. They plummeted dramatically to $53.7 million. That’s a 56.6% decline from the $123.9 million collected in July 2025, or $70.1 million. The loss was due to a $31.4 million rise in refunds, a $28.2 million drop in projected payments, and a $10.5 million drop in other types of business payments.
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Some places had better numbers. The Motor Fuel Tax brought in $3.2 million more, or 1.7%, for a total of $194.5 million for the month. Fees for motor vehicle tags and titles climbed by about $6 million, or 19%, while Title Ad Valorem Tax revenue went up by $6.6 million, or 9.9%, compared to last year.
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The drop in revenue is due to changes in policy and the timing of payments, but state officials will be keeping a close eye on the situation in the following months to determine if the trend continues or levels off as Georgia moves closer into fiscal year 2026.
