Texas Comptroller Don Huffines released the state’s fiscal 2026 revenue totals on Sept. 11, reporting that All Funds tax collections finished the year $1.6 billion above forecast. General Revenue-related revenue totaled $88.26 billion, up 2.5% from fiscal 2025, according to a Sept. 11 news release from the Comptroller’s office.
The totals close the books on the first year of the state’s current two-year budget cycle, and they set the baseline against which the second year will be measured. Huffines said in the release that the numbers point to continued economic momentum.
“All Funds tax collections exceeded forecasted amounts by $1.6 billion (1.9%) and fiscal 2025 collections by $4.03 billion,” Huffines said. “This leaves the state in an improved fiscal condition heading into the second fiscal year of the current budget cycle and indicates the continued strong performance of the Texas economy.”
All Funds revenue reached $188.89 billion, a 3.2% increase over fiscal 2025, while All Funds tax collections totaled $88.23 billion, up 4.8%, the agency reported. Sales tax revenue, the state’s largest single tax source, came to $52.24 billion, up 6.5%. Motor vehicle sales and rental tax revenue rose 5.2% to $7.45 billion, and oil production tax revenue climbed 9.2% to $5.88 billion. Two sources moved the other way: franchise tax revenue slipped 1.7% to $6.96 billion, and natural gas production tax revenue fell 1.8% to $2.43 billion.
Huffines tied the sales tax growth to the state’s long-running debate over property taxes. “The increased revenue from state sales tax is also a positive sign for meaningful property tax relief for Texans,” he said. “The Legislature should prioritize lowering the cost of homeownership by dedicating surplus sales tax collections to reducing property taxes.”
The Comptroller’s office also said the State Highway Fund will receive $2.69 billion in November transfers of oil and natural gas severance taxes, up from $2.52 billion in November 2025. The Economic Stabilization Fund has remained above its cap and will not receive any severance tax transfers this year, the release said, and that revenue will continue to be part of the General Revenue Fund along with interest earned on the fund’s cash balance.
Monthly collection figures are available through the agency’s Monthly State Revenue Watch, and the Comptroller’s office said its updated Sources of Revenue publication documents tax policy developments and fees dating to 1972.