State Tax and Economic Review, 2022 Quarter 3

Total state tax revenue collections increased 7.2 percent in nominal terms and 0.1 percent in real terms in the third quarter of 2022 relative to a year earlier. This is much weaker than the strong revenue growth observed in the first half of 2022. Both corporate income and general sales tax revenues saw year-over-year real growth in the third quarter of 2022, at 4.3 and 3.7 percent, respectively. Personal income tax collections declined 4.1 percent in real terms while motor fuel tax collections declined 10.1 percent in the third quarter of 2022 relative to a year earlier.

Preliminary data show year-over-year declines in nationwide state tax revenue collections in the fourth quarter of 2022. But there is large variation across states and across revenue sources.