Minnesota Tax Collections Beat Forecast at End of 2025

St. Paul, MN (MinnesotaNow) - A new Revenue and Economic Update issued by the State of Minnesota shows tax collections during the final two months of last year were slightly higher than expected.

The Office of Management and Budget reports that Minnesota’s net general fund revenues for November and December totaled approximately $5.6 billion. That figure was $65 million, or 1.2%, above the level predicted in the state revenue forecast issued in November.

Breakdown of Tax Collection by Category

Individual income tax payments over the two-month period totaled just under $2.63 billion, which was $9 million above the forecast. Sales tax collections totaled just under $1.3 billion and were about $5 million higher than projected.

Minnesota Management and Budget

Corporate tax payments came in slightly under the forecast at $611 million, or $5 million less than expected.

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The largest deviation from the forecast involved revenues from fees and other miscellaneous sources. Those revenues totaled just under $1.07 billion, exceeding the forecast by 5.5%, or approximately $56 million.

Slightly Higher GDP Forecast

Looking ahead, the state’s economic consultant has revised its overall outlook slightly higher for the next several years. The report forecasts U.S. gross domestic product will grow by 2.3% this year, followed by slower growth through 2029. The GDP prediction for 2026 is up one-tenth of a percentage point from the level projected in the November state revenue forecast.

Minnesota Management and Budget

At the same time, the economic consultant is also predicting slightly higher inflation, interest rates, and unemployment.