CHARLESTON, WV (LOOTPRESS) – West Virginia finished Fiscal Year 2026 with a $370 million revenue surplus, according to the West Virginia Department of Revenue, as General Revenue Fund collections exceeded state estimates by seven percent.
The state collected approximately $5.693 billion during the fiscal year, outperforming projections by $370 million. June also ended above expectations, with more than $569 million in revenue collected, surpassing the monthly estimate by $57 million, or 11.1%.
“When you focus on the fundamentals and exercise fiscal discipline, we put West Virginia in a position to end the fiscal year strong as revenues continued to outpace our projections,” said Governor Patrick Morrisey.
“Because of our significant surplus, we will fund every obligation in the back of the budget, including $125 million for roads and infrastructure, fully fund the Hope Scholarship, and other important priorities. Our next budget will aggressively fund education, foster care, infrastructure, law enforcement, and other key initiatives while providing tax relief to our citizens.”
Personal Income Tax collections, the state’s largest General Revenue Fund source, totaled $237 million in June, exceeding estimates by $48 million. For the fiscal year, collections came in $159 million, or 7.9%, above projections and were $52 million higher than the previous fiscal year.
State officials noted, however, that the annual growth rate remained below inflation and does not fully reflect income tax rate reductions approved during the previous legislative session.
Consumer Sales Tax collections reached $183 million in June, exceeding estimates by $4 million. For the full fiscal year, collections were $41 million above estimates and increased by $131 million, or 7.2%, compared with Fiscal Year 2025. The Department of Revenue said the increase reflects continued consumer spending but cautioned that recent growth has remained below the rate of inflation.
Severance Tax collections totaled $63 million in June, outperforming estimates by $30 million. For the fiscal year, Severance Tax revenue reached $534 million, exceeding projections by $136 million and increasing $95 million from the previous fiscal year. The department said ongoing conflict involving Iran could contribute to continued volatility in one of the state’s most unpredictable revenue sources.
Corporate Net Income Tax collections fell short of estimates by $8 million in June and finished the fiscal year $8 million below projections. Collections were also $70 million lower than the previous fiscal year.
Tobacco Products Tax collections exceeded June estimates by $2 million but ended the fiscal year $3 million below projections. The Department of Revenue said it expects revenue from tobacco taxes to continue declining as consumers move away from traditional cigarette products.
Interest Income also continued to outperform expectations. The state collected $11 million in June compared with an estimated $6 million. For the fiscal year, Interest Income exceeded projections by $39 million, although it remained nearly $45 million below the previous fiscal year’s total due to changing investment conditions.
