In August 2026, Texas reported an impressive $4.62 billion in state sales tax revenue, marking a 7.1% increase compared to the same month in 2025, according to Comptroller Don Huffines. This uptick is largely attributed to robust performances in the construction, mining, and retail sectors. Notably, online shopping receipts soared by over 20% for the second consecutive month.
The majority of the sales tax revenue collected in August stemmed from transactions conducted in July, which were subsequently reported to the comptroller’s office. Various business sectors contributed to the growth, with particularly strong gains in construction and mining.
In terms of specific figures, manufacturing tax remittances climbed 5.2% year-over-year, while wholesale trade collections saw a modest increase of 1.7%. Retail trade collections experienced a nearly 10% boost from the previous year, and service-sector collections rose by 8.2%. Additionally, restaurant revenues increased by 3.8%, illustrating a broad-based recovery across multiple industries.
Overall, Texas has accrued $35.2 billion in sales tax revenue during the first eight months of the year, reflecting a 7.3% increase compared to the same period in 2025. Sales tax remains the cornerstone of the state’s budget, accounting for 58% of total tax collections.
In addition to sales tax, Texas also saw significant revenue from other major tax sources in August. Motor vehicle sales and rental taxes brought in $670 million, a 13% rise from August 2025. Conversely, motor fuel taxes decreased by 6% to $342 million. Meanwhile, oil production and natural gas production taxes saw increases of 18% and 4%, respectively, generating $526 million and $202 million. Hotel occupancy taxes rose by 12% to $76 million, and alcoholic beverage taxes increased by 6% to $150 million.
Comptroller Huffines emphasized the importance of this increased revenue, suggesting it could pave the way for substantial property tax relief for Texas residents. “The increased revenue from state sales tax is a positive sign for meaningful property tax relief for Texans,” he stated. He urged the Legislature to allocate these elevated sales tax collections towards reducing property taxes, thus lowering the financial burden of homeownership.
