New York's tax take runs $7.3 billion ahead of forecast at midyear as Wall Street profits climb

New York State collected $68.5 billion in taxes in the first six months of its fiscal year, $7.3 billion more than the state Division of the Budget had projected, according to the monthly cash report released Friday by state Comptroller Thomas DiNapoli. Collections through September were also $8.6 billion higher than at the same point last year.

DiNapoli said the stronger personal income and business tax receipts are partly the result of financial market growth and pointed to his recent report showing Wall Street profits rising sharply in the first half of the year. He added that consumer costs "keep rising" and that the economy needs to work for all New Yorkers, not just those benefiting from the markets.

Where the money came from

• Personal income tax: $36.4 billion, $2.5 billion above the budget office's plan and $2.9 billion more than a year earlier.
• Business taxes: $17.6 billion, including the Pass-Through Entity Tax, $4.1 billion above plan and $4.6 billion more than last year.
• Consumption and use taxes: $12.7 billion, up 7.2%. Sales tax, the largest piece, rose $840.8 million, or 7.8%.

On the other side of the ledger, all-funds spending through September totaled $130.1 billion, more than $10.2 billion higher than a year earlier, mainly because of higher Medicaid costs, the comptroller said. That was still $927.4 million below the budget office's projection. The General Fund ended September with a $63.9 billion balance, $9.7 billion more than projected.

What it means for the city

Wall Street matters to both the state and city budgets. Patch reported that DiNapoli expects the industry to top $90 billion in profits this year, which could mean record bonuses and more income tax when they are paid. The securities industry generated an estimated $7.8 billion in city tax revenue in fiscal 2026, or 9.2% of the city's total tax collections, according to the comptroller's figures cited by Patch.

Patch noted that the surplus is not a dedicated fund for Mayor Zohran Mamdani's priorities, such as free child care or fare-free buses, and that state officials still have to weigh existing obligations. It also flagged the downside risk: a city comptroller scenario that pairs AI-driven disruption with a sharp market drop would cut Wall Street profits to $33.1 billion in 2027 and city tax revenue by $3.4 billion in fiscal 2027.

The report covers only the first half of the state's fiscal year, which runs through March, Southern Tier Now noted, so the full-year picture could still change.