Texas Comptroller Huffines Reports Net State Sales Tax Revenue Totaled $4.8 Billion in October
(AUSTIN) — Texas Comptroller Don Huffines today said net state sales tax revenue totaled $4.8 billion in October, 13.3% more than in October 2025.
“October’s strong sales tax collections are encouraging and reflect continued economic growth across key sectors of the Texas economy,” Huffines said. “These healthy collections provide lawmakers with an opportunity during the next legislative session to continue making property tax relief a top priority and help Texans keep more of their hard-earned money.”
Sales tax revenue increased by double digits in October compared with the same month a year ago for the second straight month, the first time that has occurred since the months coming out of the government lockdowns during the Wuhan virus. Remittances from sectors driven primarily by business spending showed the largest increases, and retail trade, the largest sector, was up 11%.
Collections from the construction and manufacturing sectors were up 38% and 33%, respectively, from October 2025. The gains were spread across subsectors of both industries and may reflect investment in large-scale projects, including data centers, in September. Sales tax remittances from the oil and gas mining sector were down nearly 12% from October 2025.
Among the sectors affected mainly by consumer spending, the retail trade and services sectors were both up significantly last month. Receipts from the retail trade sector increased by 11%, driven mainly by increased remittances from electronics and appliance stores and online shopping.
Receipts from restaurants were up 2.3%, below the rate of inflation for food away from home.
Net revenue reflects sales tax collections after refunds, overpayment credits and prepayment adjustments. These collections come mostly from businesses that report tax monthly and reflect their September sales. Businesses that report quarterly or annually remit on a different schedule.
Calendar year-to-date net state sales tax revenue was $44.4 billion, up 8.4% compared with the same period a year ago. Sales tax is the largest source of state tax revenue, accounting for 59% of all tax collections in fiscal 2026.
Total All Funds revenue was $14.3 billion in October, down 8.1% from October 2025. The decline reflects a one-time toll-related payment of $1.75 billion received in October 2025; excluding that payment, All Funds revenue was up 3.5% from a year ago.
Texas collected $6.9 billion in All Funds tax revenue in October, up 7.1% from October 2025. Revenue from other major taxes included:
- motor vehicle sales and rental taxes: $690 million, down 1% from October 2025;
- motor fuel taxes: $332 million, down less than 1% from October 2025;
- oil production tax: $634 million, up 56% from October 2025;
- natural gas production tax: $50 million, down 78% from October 2025;
- hotel occupancy tax: $51 million, down 21% from October 2025; and
- alcoholic beverage taxes: $133 million, down 8% from October 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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