Texas sales tax revenue reached $4.62 billion in August, rising 7.1% compared with the same month last year, according to state Comptroller Don Huffines.
The figures, released on Tuesday, show continued growth in receipts from both businesses and consumers. Most of the August revenue came from purchases made in July and reported to the comptroller’s office the following month. ([comptroller.texas.gov](https://comptroller.texas.gov/about/media-center/news/20260901-texas-comptroller-huffines-reports-state-sales-tax-revenue-totaled-46-billion-in-august-1788292879504?utm_source=openai))
Texas sales tax revenue rises across major sectors
Retail collections were almost 10% higher than in August 2025, while receipts from online shopping climbed by more than 20% for the second consecutive month.
Service-sector revenue increased by 8.2%, with restaurants recording a 3.8% rise. Manufacturing collections were up 5.2%, while wholesale trade grew by 1.7%.
The strongest increases came from business-led activity, with the construction and mining sectors recording particularly robust growth, the Texas Comptroller’s Office said. ([comptroller.texas.gov](https://comptroller.texas.gov/about/media-center/news/20260901-texas-comptroller-huffines-reports-state-sales-tax-revenue-totaled-46-billion-in-august-1788292879504?utm_source=openai))
Sales tax revenue for the first eight months of 2026 totalled $35.2 billion, 7.3% above the equivalent period in 2025. The tax is Texas’s largest source of funding for its state budget, accounting for 58% of all tax collections.
Other August receipts included $670 million from motor vehicle sales and rental taxes, up 13% year on year, and $526 million from oil production taxes, an 18% increase. Motor fuel tax revenue fell by 6% to $342 million.
Hotel occupancy tax receipts rose 12% to $76 million, while alcoholic beverage tax revenue increased 6% to $150 million. Natural gas production tax collections reached $202 million, up 4% on August 2025.
Mr Huffines said the rise in sales tax revenue could support efforts to reduce property taxes, urging the Texas Legislature to direct the additional money towards lowering the cost of home ownership. ([comptroller.texas.gov](https://comptroller.texas.gov/about/media-center/news/20260901-texas-comptroller-huffines-reports-state-sales-tax-revenue-totaled-46-billion-in-august-1788292879504?utm_source=openai))
