January’s tax revenues are getting the state of Kansas off to a good financial start.
The Department of Revenue is reporting total tax collections at $988.2 million, above January 2025 by almost 5 percent and above estimates by 1.2 percent.
Individual and corporate income tax collections both surpassed estimates and prior-year numbers. Individual collections were $542.3 million, above estimates by 1.4 percent and ahead of last year by over 8 percent. Corporate collections, meanwhile, were $86.2 million, beating estimates by over 23 percent and last year by over 18 percent.
Combined retail sales and compensating use tax receipts were almost $338 million, but that missed projections by 3.5 percent and last year by 3.2 percent.
Even with the largely solid numbers, Kansas Governor Laura Kelly is still concerned about legislative spending, saying lawmakers have been spending more than they collect and have created a structural imbalance in the budget going forward. She says her budget proposal is designed to reverse the imbalance over the next few years if approved.
