Total tax revenue collected by state and local governments was up 5.8% from a year ago in the second quarter, according to the Quarterly Summary of State and Local Government Tax Revenue published by the U.S. Census Bureau. This was the highest year-over-year growth since the third quarter of 2024 (7.2%).

The increase in revenue was led by growth in corporate income tax collections, which were up 9.8% from a year ago. Individual income tax collections rose 8.9% over the year, while property tax and sales tax collections each increased 4.0%. Tax revenue collections in the second quarter on a seasonally adjusted basis totaled $578.7 billion.

Property tax collections totaled $212.3 billion in the second quarter, an increase from a revised $210.5 billion in the first quarter, marking a 0.8% increase over the quarter. Property tax revenue accounted for 36.7% of total tax revenue in the second quarter. This share has remained relatively stable near 37%, over the past three years.

Property taxes typically make up the largest share of the total tax revenue for state and local governments, with most property tax collected by local governments. The second-largest revenue generator was individual income taxes, at $161.1 billion (27.8%). This was followed by sales tax, at $156.8 billion (27.1%). Corporate income tax rounded out the remaining 8.4%, totaling $48.5 billion.