Texas Comptroller Don Huffines reported Sept. 1 that state sales tax revenue totaled $4.62 billion in August, 7.1 percent more than in August 2025. According to the comptroller’s news release, the majority of August sales tax revenue reflects sales made in July and remitted to the agency in August.
The figures matter because sales tax is the largest source of state funding for the Texas budget. The comptroller’s office said it accounts for 58 percent of all tax collections. Calendar year-to-date sales tax revenue stood at $35.2 billion, up 7.3 percent compared with the same period a year ago, according to the release.
Huffines tied the growth to his push for property tax relief. “The increased revenue from state sales tax is a positive sign for meaningful property tax relief for Texans,” Huffines said in the release. “The Legislature should prioritize lowering the cost of homeownership by dedicating elevated sales tax collections to reducing property taxes.”
According to the comptroller’s office, growth in receipts was positive across all of the large sectors primarily influenced by business spending, with collections from the construction and mining sectors described as particularly robust. Remittances from the manufacturing sector came in 5.2 percent above August 2025, and collections from the wholesale trade sector rose 1.7 percent from the same month last year, following a nearly 10 percent jump in July.
Consumer-driven sectors also posted gains. The agency said receipts from retail trade came in nearly 10 percent higher than August 2025 collections, led by remittances from online shopping, which were more than 20 percent higher than a year ago for the second consecutive month. Collections from the service sector rose 8.2 percent over August 2025, and receipts from restaurants were up 3.8 percent, which the comptroller’s office noted was above the rate of inflation for food away from home.
Other major taxes also grew in August, according to the release. Motor vehicle sales and rental taxes brought in $670 million, up 13 percent from August 2025, while oil production tax revenue reached $526 million, up 18 percent. Natural gas production taxes totaled $202 million, up 4 percent; hotel occupancy taxes came in at $76 million, up 12 percent; and alcoholic beverage taxes totaled $150 million, up 6 percent. Motor fuel taxes were the one decline, at $342 million, down 6 percent from a year earlier.
The comptroller’s office said details on all monthly collections are available through its Monthly State Revenue Watch. With the Legislature not scheduled to convene in regular session until 2027, the monthly figures will continue to shape the debate over how much of the state’s sales tax growth can be directed toward property tax relief.