Texas Comptroller Huffines Reports State Sales Tax Revenue Totaled $4.4 Billion in September
(AUSTIN) — Texas Comptroller Don Huffines today said state sales tax revenue totaled $4.4 billion in September, 11.5% more than in September 2025. The majority of September sales tax revenue is based on sales made in August and remitted to the agency in September.
“Sales tax collections remain above prior-year levels, giving lawmakers reason to keep property tax relief as the top priority,” Huffines said. “If collections continue to hold up, the Legislature will be well positioned to dedicate the surplus to meaningful property tax relief that eases the burden on homeowners, businesses, and renters.
“Sales tax revenue growth was vigorous in the sectors driven by business spending, indicating the Texas economy continued to grow robustly despite headwinds of rising interest rates and elevated energy costs.”
Double-digit growth in receipts was observed for the large sectors primarily influenced by business spending — mining, construction, manufacturing, wholesale trade, and real estate, rental and leasing. Those rates of growth were in some part attributable to last year's collections being depressed by higher-than-normal refund activity, but most of the growth reflects an increase in economic activity this year.
Growth in receipts from retail trade, the largest sector, was 3% compared with the same month a year ago, slightly below the 3.4% rise in the Consumer Price Index. Within retail, electronics and appliance stores and automotive dealers showed the largest gains.
Receipts from restaurants were up 2.5%, below the rate of inflation for food away from home.
Calendar year-to-date sales tax revenue was $39.6 billion, up 7.8% compared with the same period a year ago. Sales tax is the largest source of state funding for the state budget, accounting for 59% of all tax collections.
Texas collected the following revenue from other major taxes:
- motor vehicle sales and rental taxes — $684 million, up 5% from September 2025;
- motor fuel taxes — $337 million, down 1% from September 2025;
- oil production tax — $507 million, up 14% from September 2025;
- natural gas production tax — $290 million, up 30% from September 2025;
- hotel occupancy tax — $65 million, up 10% from September 2025; and
- alcoholic beverage taxes — $147 million, down 2% from September 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.
|
