Atlanta, Georgia – Based on the most recent financial statistics, tax collections for February 2025 in Georgia show a promising increase of 4.6% compared to the same month last year. Reflecting a $94.2 million rise, this increment increases the net tax collections for February to about $2.13 billion, up from $2.03 billion in February 2024.
Still, the year-to- date numbers show a somewhat different picture even with this monthly increase. Following state motor fuel excise tax adjustment—which Executive Order temporarily froze for a portion of the fiscal year 2024—the net tax revenue collections for the period ending February 28, 2025, reflect a minor decline of 0.4%, equating to $21.53 billion.
The Individual Income Tax collections seem to be the main cause of February’s income increase; they significantly jumped to almost $1.01 billion. Compared to the $878.8 million gathered in the same month of the previous year, this shows a 14.9% rise, or $130.5 million.
Looking at this category deeper indicates that three elements helped to drive the net rise: a large decline in Individual Income Tax refunds provided by 12.1%, increased Income Tax Withholding payments by 5.2%, and an increase in Individual Income Tax Return payments by 10.3%. Other Individual Tax categories, including Estimated Tax payments, also increased by $5.9 million taken together.
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In contrast, the Gross Sales and Use Tax receipts barely rose 2.4%, amounting to $1.45 billion. Despite this, the Net Sales and Use Tax experienced a decline of 2.6% over the last year, which amounted to roughly $701 million previousl. Rising sales tax refunds and more payments to local governments helped to balance this drop.
With a 16.2% drop equating to $14.4 million less than the year before, when the revenues were around $88.9 million, corporate income tax collections provided a less positive financial picture. The main causes of this decline were reduced Corporate Tax refunds and a considerable drop in Corporate Income Tax Estimated payments by about 46%.
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With receipts rising by 2.1% to hit $176.7 million in February 2025, the category on motor fuel taxes saw a modest gain. The section on Motor Vehicle – Tag, Title & Fees saw a mixed performance; although the Title Ad Valorem Tax (TAVT) collections increased by 4.3%, the Motor Vehicle Tag & Title Fee collections dropped by 1.5%.
Though the results vary depending on the tax category, the general rise in February’s tax income offers a complex picture of Georgia’s economic situation as the fiscal year progresses. Although the temporary rise is positive, the modest decline in the year-to-date numbers adjusted for gasoline tax suspensions indicates continuing difficulties and economic dynamics the state must negotiate.
