Oklahoma – Oklahoma Gov. Kevin Stitt said the state’s latest revenue numbers show that tax cuts can boost economic growth, after Fiscal Year 2026 General Revenue Fund collections finished hundreds of millions of dollars above expectations.
“When you cut taxes, revenue grows,” Stitt wrote on X. “After cutting taxes last year, FY2026 General Revenue Fund collections came in $612 million above the official estimate and $142 million higher than FY2025, marking our sixth straight year of finishing above revenue estimates.”
According to the governor’s office, Oklahoma’s FY2026 General Revenue Fund closed at $612 million, or 7.4%, above the official estimate, while collections were $142 million higher than the previous fiscal year.
Stitt credited the results to what he described as conservative fiscal policies, including tax reductions, controlled government spending, and policies aimed at encouraging business growth.
“This is exactly what happens when you cut taxes, trust Oklahoma families and businesses, and keep government accountable. Oklahoma’s economy is strong, our revenues are up, and we’re proving year after year that conservative leadership works,” Stitt said.
The FY2026 revenue performance marked the sixth consecutive year that Oklahoma finished above revenue estimates, according to the governor’s office.
Stitt pointed to more than $1.6 billion in tax cuts since 2019 as a major part of his administration’s economic approach. Recent tax relief measures included a 0.50 percentage point reduction in the personal income tax rate and the elimination of the 4.5% state sales tax on groceries, which took effect in 2024.
The governor said the state’s ability to reduce taxes while maintaining strong revenue collections demonstrates that Oklahoma can lower the financial burden on families and businesses while continuing to fund essential government services.
“During my administration, we have cut more than $1.6 billion in taxes and put Oklahoma on the path to a zero-income tax state,” Stitt said. “Our economy is shining, and Oklahomans continue to deliver tax revenue to meet the needs of core government services.”
The Oklahoma Office of Management and Enterprise Services (OMES) released the final FY2026 revenue report, which officials said reflects continued economic strength and financial stability.
Supporters of Stitt’s tax policies argue that lower taxes help attract businesses, encourage investment, and allow residents to keep more of their income. They point to repeated years of revenue exceeding projections as evidence that tax reductions have not weakened the state’s finances.
Critics of tax cuts, however, have argued that reduced revenue can create challenges for funding public services and that strong collections are influenced by broader economic conditions beyond tax policy alone.
Stitt has continued to advocate for additional tax reductions, including his long-term goal of eliminating the state income tax. He said Oklahoma’s latest revenue numbers show the state is moving in the right direction.
“Oklahoma is open for business, our economy is strong, and we’re just getting started,” Stitt said.
