Fiscal Year 2026 came to an end with the state seeing increased revenue for the month of June, according to the Legislative Services Agency. Through the end of June, the state has collected $8.0908 billion in net receipts. That is a decline of 9.8 percent when compared to Fiscal Year 2025. This puts the year end number close to what the Revenue Estimating Conference had projected in March, when they forecast a 9.5 percent decline due to implementation of the 2024 income tax reduction law.

Personal income tax – With the implementation of the 2024 tax reduction law completed in Fiscal Year 2026, personal income tax collections were expected to be lower this year. For the year, personal income tax collections were 16.4 percent lower than the Fiscal Year 2025. This is a slightly larger decline than what the REC had forecasted in March, when they anticipated personal income tax payments to drop by 12.9 percent for the year.

Sales and use tax – Sales and use tax collections were higher in June. For the year so far, sales and use tax receipts grew by 6.2 percent over Fiscal Year 2025. This is higher than the Revenue Estimating Conference’s prediction of a 4.0 percent growth for the year.

Corporate income tax – Changes in the tax rate and the continued fluidity produced by the pass-through entity tax impacted corporate tax collections for the year. While June collections were higher compared to last year, the overall total for this category is smaller than last year. Corporate income tax collections are 21.1 percent lower than FY 2025. But this figure is a smaller decline than what the REC projected in March.

Refunds – Another category being impacted by the full implementation of the 2024 income tax reduction is in the amount of refunds paid out by the state. With tax tables lowered, Iowans paid less in personal income tax and thus had less to be refunded to them. Through June, the amount of refunds paid by the state has fallen by 12.8 percent. This is much larger decline than the REC had forecasted in March, when they expected refunds to decline by just 2.8 percent.

While we have now reached the calendar end of the fiscal year, the state’s books on Fiscal Year 2026 do not officially close until the end of August. During this time, revenue and refunds that should be counted as part of FY 2026 will be accounted for. Final numbers will be released when the Revenue Estimating Conference meets this fall.

Casino Tax Revenue Exceeds Revenue Estimating Conference Projection

Casino tax payments during Fiscal Year 2026 exceeded the state Revenue Estimating Conference’s forecast for the year. For the month, the state collected just over $26 million in casino tax. This figure was slightly higher than the $25.9 million collected from casinos in June 2025. June was the third straight month that casino gaming tax collections had exceeded the previous year’s figure.

For Fiscal Year 2026, the state took in $312.55 million in casino gaming tax revenue. This is $1.9 million less than the state collected in FY 2025. The reduction was due to the continued phaseout of taxing promotional play. This change was expected to reduce tax gaming tax revenue by over $5 million in FY 2026.

The year-end number did exceed the Revenue Estimating Conference’s projection from this March, when the panel expected the state to collect $308.0 million in gaming tax payments in FY 2026. And the actual total also blew away the REC forecast from March 2025, which was used to put together the Rebuild Iowa Infrastructure Fund budget. Then, the three-member panel projected gaming tax revenue would be just $286.5 million in Fiscal Year 2026.

Sports wagering tax revenue dropped slightly in June, but total collections again exceeded the previous year. In June, the state’s 6.75 percent tax on casino sports wagering profits collected $1.107 million. This was lower than June 2025’s figure of $1.285 million.

Through the end of June, the state had collected $19.188 million in sports wagering taxes. There had been $2.867 billion wagered through Iowa casinos, which generated $284.5 million in net receipts for those facilities. It is on that income that the sports wagering tax is assessed, not on actual bets.

The FY 2026 total is an increase of almost $3 million over the Fiscal Year 2025 total of $16.214 million. The growth in tax collections - 18.33 percent rise in FY 26 - is greater growth than what the state experienced in FY 2025 (+11.3%) or FY 2024 (+6.73%). See the chart above which shows the rise in sports wagering tax collections since sports betting was legalized in Fiscal Year 2020.