Updates About Economy

Recently, The Senate Fiscal Agency (SFA) released the Monthly Revenue Report for July 2026. Total tax collections totalled $3.1 billion, $174 million above what was expected and 6.9% higher than July 2025.

The revenue for both the net income tax and the combined sales and use tax came in at $1.2 billion. The combined sales and use tax number beat expectations by $106.9 million, whereas net income tax was slightly behind beating expectations by $93.3 million.

The repealed Single Business Tax, Michigan Business Tax (MBT), and Corporate Income Tax (CIT) generated $140.0 million in net revenue. The combined collections were $39.6 million below the predicted number. Revenue from CIT collections caused most of the drag, as it lagged behind the predicted number by $43.1 million.

General Fund (GF) collections were $75.3 million above the forecasted number, and the School Aid Fund exceeded expectations by $82.2 million. So far, the year-to-date collections for the GF sits at $459.3 million, and for the School Aid Fund, $194.5 million.

The Senate Fiscal Agency (SFA) recently released the Monthly Revenue Report for June 2026. Tax collections came in at $3.4 Billion, $163 million above what was expected and 3.1% higher than last June.

The largest source of revenue was from net income taxes, totaling $1.5 billion. Despite bringing in the most revenue, collections were $25.3 million below the expected number. Not far behind in revenue were combined sales and use tax collections coming in at $1.2 billion, $73.4 million above expectations. The repealed Single Business Tax, Michigan Business Tax (MBT), and Corporate Income Tax (CIT) generated $333.0 million in net revenue. The combined collections were $109.7 million higher than the predicted number largely due to CIT collections and less MBT refunds being claimed.

General Fund (GF) collections were $112.9 million above the estimated number, and the School Aid Fund exceeded the predicted number by $39.4 million. So far the year-to-date collections for the GF sits at $384 million, and for the School Aid Fund, $112.2 million.

In other economic news, the Michigan Health and Hospital Association released their healthcare sector report for 2024. The report shows that the healthcare industry in Michigan is the largest private-sector employer, supporting more than 1 million jobs. According to the report, the healthcare industry in Michigan created $115 billion in economic value and $25.1 billion in tax revenue during the 2024 fiscal year. The full report can be found here.

The Senate Fiscal Agency (SFA) recently released the Monthly Revenue Report for May 2026. The report detailed that tax collections came in at $2.7 billion, $368.4 million above expectations and 3.8% higher compared to last May.

Leading the pack in revenue was net income tax, which totaled $1.2 billion, and came in $214.3 million higher than expected. Combined sales and use tax was a close second bringing in $1.1 billion, a slight decline from last May, but still coming in $52 million above expectations. Two surprises, first collections from the repealed Single Business Tax, Michigan Business Tax (MBT), and Corporate Income Tax (CIT) which was 89% higher than last year, totalling $146.6 million. Second, Individual Income Tax refunds were $147.1 million lower than expected.

General Fund (GF) collections were $285.1 million above the estimated number, and the School Aid Fund exceeded the predicted number by $72.9 million.

In other economic news, the Michigan Department of Technology, Management and Budget has released its latest jobs report. Michigan’s unemployment has risen to 5.1% compared to the national average of 4.3%. Despite this, Michigan has added over 17,000 payroll workers since February, with manufacturing seeing the largest increase. Since last May, Michigan has experienced its largest job losses in the transportation and utilities sector, which lost 9,000 jobs, followed by manufacturing (-8,000) and leisure and hospitality (-6,000).