State Sales Tax Revenue Totaled $4.6 Billion in January
(AUSTIN) — Acting Texas Comptroller Kelly Hancock today said state sales tax revenue totaled $4.6 billion in January, 7.1 percent more than in January 2025. The majority of January sales tax revenue is based on sales made in December and remitted to the agency in January.
“State sales tax collections were very strong last month, with growth well above the rate of general price inflation,” Hancock said. “Results from all major economic sectors were positive, with growth especially strong in receipts from sectors driven by business spending.”
Receipts from the sectors mainly affected by business spending showed the largest gains compared with a year ago, with the mining and construction sectors both exhibiting double digit growth. Remittances from the manufacturing sector were more than 8 percent, and receipts from the wholesale trade sector came in 4 percent above their January 2025 totals.
From the large sectors driven primarily by consumer spending, the retail trade and service sectors increased moderately compared with the same month a year ago. Receipts from the retail trade sector were up more than 3 percent compared with last January. Within the retail trade sector, electronic shopping was up nearly 10 percent, while remittances from the general merchandise sector were down slightly.
Receipts from restaurants were up more than 3 percent from a year ago, though less than the rate of inflation for food away from home.
Total sales tax revenue for the three months ending in January 2026 was up 6.1 percent compared to the same period a year ago. Sales tax is the largest source of state funding for the state budget, accounting for 58 percent of all tax collections.
Texas collected the following revenue from other major taxes:
- motor vehicle sales and rental taxes — $631 million, up 7 percent from January 2025;
- motor fuel taxes — $327 million, up 4 percent from January 2025;
- oil production tax — $384 million, down 18 percent from January 2025;
- natural gas production tax — $189 million, up 9 percent from January 2025;
- hotel occupancy tax — $57 million, up 19 percent from January 2025; and
- alcoholic beverage taxes — $161 million, up 4 percent from January 2025.
For details on all monthly collections, visit the Comptroller's Monthly State Revenue Watch. For an extensive history of tax policy developments and fees since 1972, visit our updated Sources of Revenue publication.
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