Virginia reports strong revenue growth in February supported by significant employment and business investment
Richmond, Virginia – Virginia continues to demonstrate financial resilience, as Governor Glenn Youngkin announced that total general fund revenues rose by 12.6 percent in February compared to the same month in the previous year. This growth amounts to an increase of $208.2 million for the month and contributes to a total year-to-date growth of 6.6 percent—equating to $1.17 billion—through the first eight months of Fiscal Year 2025.
The state’s revenues are currently $187.2 million, or 1.0 percent, ahead of projections. Although February is not typically a month associated with high revenue collection, many sources reported positive year-over-year performance. This includes payroll withholding and sales and use taxes, both of which indicate solid economic fundamentals across the state.
“Virginia remains in a strong financial position, with state revenue running slightly ahead of plan,” said Governor Glenn Youngkin. “Virginia’s strong job growth and significant investment commitments from businesses are driving revenue growth year-over-year, resulting in a projected surplus versus the adopted budget for the fourth consecutive year.”
Payroll withholding revenues showed particular strength, up 7.1 percent from last year and 1.4 percent ahead of forecast. This reflects continued strength in both employment and wages. Additionally, net individual income tax, sales tax, and corporate income tax collections—which together account for over 90 percent of the state’s general fund revenues—are all tracking closely with official expectations.
“Net individual income, sales and corporate income tax collections, which account for more than 90 percent of overall General Fund revenues, are collectively within one percent of forecast. Payroll withholding revenues within those amounts are 7.1 percent ahead of last year and 1.4 percent ahead of forecast indicating the ongoing strength of jobs and wages. Other minor revenue streams are also meaningfully outperforming projections,” said Secretary of Finance Steve Cummings. “We continue to have confidence in our Fiscal Year 2025 forecast.”
This marks the fourth consecutive year Virginia is projected to outperform its adopted budget, reinforcing confidence in the state’s fiscal health as it moves further into 2025.
For additional details, the full February 2025 revenue report is available here.
