TOPEKA, Kan. — The State of Kansas reported total tax collections of $577.1 million in March 2026, falling $68.9 million, or 10.7%, below projections, according to newly released figures.
The March total also represents a 9.4% decrease compared to tax collections in March 2025, signaling potential concerns about the state’s short-term revenue outlook.
Laura Kelly voiced concern over the shortfall, noting that the state has now missed revenue expectations by more than $175 million since the most recent Consensus Revenue Estimates issued in November.
“Missing revenue estimates by nearly $69 million in March and by over $175 million cumulatively since the last Consensus Revenue Estimates in November is concerning,” Kelly said in a statement.
The governor also criticized legislative leadership for adjourning the session before updated revenue estimates are released in April, calling the move “reckless” and “irresponsible.”
“This approach to budgeting is not smart and it is not fair,” Kelly said. “The people expect leaders to be good stewards of Kansas taxpayers’ dollars, and that means working until the job is done right, even during election years.”
A closer look at individual tax categories shows mixed results:
- Individual income tax collections totaled $271.3 million, coming in $3.7 million, or 1.3%, below estimates. However, those collections were up 3.7% compared to March of last year.
- Corporate income tax collections posted a negative $23.5 million, missing estimates by $63.5 million, or 158.8%, and declining 147% from March 2025.
- Retail sales and compensating use tax receipts performed better than expected, totaling $262.1 million — $8.1 million, or 3.2%, above estimates — and rising 6.2% year-over-year.
The significant drop in corporate income tax collections appears to be the primary driver behind the overall shortfall for the month.
State officials typically use monthly tax data to gauge economic trends and inform budget decisions. Updated Consensus Revenue Estimates expected in April will provide a clearer picture of Kansas’ fiscal outlook heading into the remainder of 2026.