Texas's general revenue for Fiscal 2026 totaled $88.26 billion, up 2.5 percent from the prior year, according to Comptroller Don Huffines.
All Funds revenue reached $188.89 billion, up 3.2 percent from Fiscal 2025. Tax collections across all funds totaled $88.23 billion, up 4.8 percent.
Sales tax revenue showed the strongest growth, reaching $52.24 billion, up 6.5 percent from the prior year. Motor vehicle sales and rental tax revenue was $7.45 billion, up 5.2 percent. Oil production tax revenue grew 9.2 percent to $5.88 billion, while franchise tax revenue declined 1.7 percent to $6.96 billion. Natural gas production tax revenue decreased 1.8 percent to $2.43 billion.
Huffines noted that all funds tax collections exceeded forecasted amounts by $1.6 billion, or 1.9 percent. He said this development "leaves the state in an improved fiscal condition heading into the second fiscal year of the current budget cycle."
The Comptroller pointed to increased sales tax revenue as a potential opportunity for property tax relief, saying the Legislature should prioritize dedicating those revenues to reducing homeownership costs.
The State Highway Fund will receive $2.69 billion in transfers of oil and natural gas severance taxes in November, up from $2.52 billion in November 2025.