Texas collected $4.62 billion in state sales tax revenue in August, a 7.1% increase from August 2025, according to state Comptroller Don Huffines. Sales tax is the largest source of state funding, accounting for 58% of all tax collections.
Growth was positive across all major economic sectors. Retail trade grew nearly 10% year-over-year, while online shopping led the way at more than 20% higher than the same month a year ago—the second consecutive month with growth exceeding 20%, according to the state.
Other sectors showed strong growth including manufacturing (up 5.2%), services (up 8.2%), wholesale trade (up 1.7%), and restaurants (up 3.8%, above food inflation). Growth in construction and mining sectors was described as particularly robust by the comptroller's office.
Calendar year-to-date sales tax revenue through August totaled $35.2 billion, up 7.3% compared with the same period last year. Other major taxes collected in August included motor vehicle sales and rental taxes of $670 million (up 13%), oil production tax of $526 million (up 18%), and motor fuel taxes of $342 million (down 6%).