California revenue tops September forecast by $2.9 billion
By Staff Writer · Published 10/20/2026, 4:05:55 PM ET
Preliminary General Fund agency receipts were 14.9% above forecast, led by corporate and personal income taxes. Part of the monthly gain reflected interest-payment timing.
California collected $22.59 billion in preliminary General Fund agency receipts in September, nearly $2.93 billion more than the 2026 Budget Act forecast. The Governor’s Office announced the result October 20, citing the state Department of Finance’s monthly bulletin.
Corporate-tax receipts were $3.96 billion, $1.30 billion above forecast. Personal income-tax receipts totaled $14.62 billion, $1.15 billion above forecast, while sales- and use-tax receipts exceeded the projection by $159 million.
Not all of the difference reflects new economic activity in September. Pooled-money interest receipts were $384 million above forecast, offsetting timing-related shortfalls in July and August, according to the Finance Department. The bulletin says receipts have exceeded projections by $5.5 billion since the forecast was completed in April, including $828 million collected during the prior fiscal year.
The same report estimated that California’s real gross domestic product grew at a 2.5% annual rate in the second quarter, compared with 2.2% nationally. State personal income increased 4.5% from a year earlier, and housing permits through August ran 15.5% above the same period in 2025.
The figures are preliminary agency cash receipts. The Finance Department cautions that they can differ from the state Controller’s report when agencies have received money that has not yet been reported to the Controller.
What it means
September’s result improves the state’s near-term revenue picture relative to the enacted forecast, but it does not by itself change the budget, tax rates or spending authority. Residents and businesses face no immediate filing or payment change from this report. The next question is whether the overage persists in later cash reports and formal budget forecasts, especially after accounting for payment timing.
Source
This State & Nation summary is based on California Governor’s Office’s original release, dated 2026-10-20. The reporting and statistics above are attributed to that publication.