NOVEMBER 2025 STATE REVENUE REPORT
NOVEMBER REVENUE COLLECTIONS FURTHER BOOST STATE SURPLUS
The Arkansas Department of Finance and Administration (DFA) reported today that November net general revenue exceeded total collections from November 2024. According to DFA, this increase was driven primarily by Individual and Corporate Income Tax collections and includes the absorption of recent tax cuts. November net general revenue was $39.8 million, or 7.8%, higher than last November, and $18.1 million, or 3.4%, above forecast. This brings the total year-to-date surplus to $108.7 million.
Individual Income Tax was up $40 million, or 16.3%, over last November. Collections were $22.3 million, or 8.5%, above forecast. DFA attributed this excess partly to one additional payday last month due to weekly payroll timing. This factor is expected to even out with December collections. DFA also noted that more-than-expected return payments contributed to the increase, tied to last year’s weather-related extended filing and payment deadline. Neither factor reflects economic growth, but both boosted November receipts.
Corporate Income Tax collections contributed $2.6 million to the November surplus. Even though collections exceeded the forecast, they were $5.8 million below last November. November is a minor collection month for Corporate Income Tax, with only $11.4 million collected.
Sales and Use Tax collections for November were $8.4 million, or 2.9%, above last year. However, this was $4.1 million, or 1.3%, below forecast. DFA noted that the timing of the 2024 Thanksgiving holiday delayed an account transfer that had inflated last year’s Sales and Use Tax collections by $7.4 million. This distorts a comparison between November 2024 and November 2025. Adjusting for this anomaly, DFA stated that Sales and Use Tax collection “growth was a solid 3.3%,” indicating growth above the built-in price inflation effect.
This is the time of year when Sales and Use Tax collections begin to reflect holiday sales. Little impact is seen in November because retailers generally remit Sales and Use Tax to the State in the month after it is collected. Holiday sales will be reflected primarily in the December and January Revenue Reports.
Overall, November was another solid month for collections. When the impacts of late 2024 payments and the extra payday are excluded from Individual Income Tax, the numbers do not indicate substantial economic growth. However, tax cuts have been largely absorbed, and collections continue to fund the budget with a substantial surplus. Combined with conservative forecasting and budgeting, this should help keep State finances healthy.
The November 2025 revenue report may be viewed here.