California's September revenues came in $2.9 billion above forecast — nearly 15% higher than projected — driven primarily by higher-than-expected personal income and corporate tax receipts, Governor Gavin Newsom announced.
Personal income tax receipts came in $1.1 billion above forecast, while corporate tax receipts exceeded projections by $1.3 billion. New economic data showed California's economy grew at a 2.5% annualized rate in the second quarter of 2026, compared with 2.2% nationally. Personal income in the state grew 4.5% year-over-year, compared with 4.4% nationally.
Housing activity also accelerated. California permitted 113,300 housing units at an annualized rate through August 2026, up 15.5% from the same period in 2025, with multifamily permits increasing 37.3%.
Nine California companies have recently been valued at more than $1 billion, the governor said. These private startups — known as "unicorns" — are headquartered in San Francisco, San Jose, Sunnyvale and Irvine and specialize in artificial intelligence, semiconductors, robotics and healthcare.
California created more than one in four American jobs added over the past year. The state added 129,300 of the nation's 496,000 net payroll jobs from September 2025 through September 2026. The state's unemployment rate held steady at 5.1% through September, matching its lowest level since February 2024.
California businesses attracted $366 billion in venture capital in 2026, more than three times the total raised in all other states combined. The state accounted for 43% of new U.S. unicorns and nearly a quarter of new unicorns worldwide in September, according to the governor's office.