Property Tax Revenue Leads State and Local Tax Growth in Q1 2026

Property tax revenue collected by state and local governments rose 2.7% in Q1 2026 to $214.6 billion, outpacing overall state and local tax growth of 1.5%, with property taxes comprising 37.5% of total tax revenue and representing the largest share among all revenue sources. Year-over-year, property tax collections increased 4.6% from Q1 2025, while individual income tax rose 1.4%, corporate income tax increased 2.1%, and sales tax declined 0.3%.