Texas state sales tax revenue totaled $4.6 billion in July, 10.1% more than in July 2025, Comptroller Don Huffines reported in an Aug. 3 news release. The majority of July revenue reflects sales made in June and remitted to the agency in July.
“State sales tax collections grew by more than 10% for the second time this fiscal year, well above the rate of general price inflation,” Huffines said in the release. “Growth was strong in nearly all major sectors, with receipts from the retail trade sector growing at their fastest pace since the pandemic.”
The retail trade sector, the state’s largest, was up more than 14% compared with last July — its second double-digit gain this fiscal year — with electronic shopping, clothing and accessory stores, and general merchandise stores all posting significant increases, according to the release. Wholesale trade rose more than 11%, construction was up nearly 10%, manufacturing gained about 5%, and services grew more than 11%, while the mining sector declined due to higher-than-usual refund activity. Restaurant receipts rose nearly 5%.
Calendar year-to-date sales tax revenue reached $30.6 billion, up 7.4% from the same period a year ago, the agency said. Sales tax is the largest source of state funding, accounting for 58% of all tax collections.
Other major taxes also posted gains: motor vehicle sales and rental taxes brought in $737 million, up 18%; the oil production tax generated $567 million, up 31%; the natural gas production tax totaled $241 million, up 36%; motor fuel taxes reached $331 million, up 10%; hotel occupancy tax collections were $84 million, up 17%; and alcoholic beverage taxes totaled $157 million, up 7%, according to the release.
Huffines said the growing revenue should position the Legislature to deliver “meaningful property tax relief” next session, a priority he said he shares with Governor Greg Abbott. “Lowering property taxes will make housing more affordable and free up money in the family budget for everyday expenses like gas and groceries,” he said.