Idaho General Fund revenue exceeds forecast by $90 Million in first quarter

Strong income tax withholding growth signals continued economic strength

Boise, Idaho — Governor Brad Little announced today Idaho’s economy continues to show signs of strength as General Fund revenue exceeded the state’s forecast by $90.3 million, or 6.8%, during the first quarter of fiscal year 2027, according to the September revenue report released today.

“Idaho’s strong revenue growth is encouraging and reflects the strength of our economy, but we must remain disciplined and make spending decisions based on what we can responsibly sustain. The difficult decisions we made last year put us in a stronger fiscal position, and we need to continue prioritizing the investments that matter most to Idahoans while protecting our long-term financial stability,” Governor Brad Little said. “In addition, strong withholding growth shows us Idahoans are working, businesses are hiring, and our economy is strong. This is good news for Idahoans and our communities.”

September General Fund revenue came in $39 million above forecast, with individual income tax collections leading the way.

Individual income tax revenue is 18.3% above forecast year-to-date, driven in part by a sharp increase in income tax withholding.

Withholding collections grew 20% during the first quarter compared with the same period last year, accelerating from growth of 2.8% in FY2026 and 5.9% in FY2025. The increase points to continued strength in Idaho’s workforce and economy.

Sales tax collections continue to reflect economic activity across the state. September collections totaled $215.1 million, bringing year-to-date collections to $617.4 million.

Online marketplace sales were particularly strong, growing 23.4% during the first quarter compared with the same period last year.

Revenue performance remains uneven across tax categories. While individual income tax collections are significantly ahead of forecast, corporate income tax collections are $10.2 million, or 7.9%, below forecast, and sales tax collections are slightly below forecast year-to-date.

The results come as Idaho continues to manage its budget following difficult spending decisions made last fiscal year. The state’s approach has focused on aligning ongoing commitments with sustainable revenue expectations while preserving resources for core priorities, including public schools, transportation, infrastructure, public safety, and services that support Idaho families.

Although first-quarter collections are encouraging, state officials will continue monitoring revenue trends and economic conditions as the fiscal year progresses. Maintaining a disciplined approach to spending will help Idaho preserve its strong fiscal position and make responsible investments in the state’s future.

The September Revenue Report is the final monthly revenue report scheduled for release before the November 2 election.

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