Texas collected $4.62 billion (£3.45 billion) in state sales tax revenue in August, a 7.1% rise on the same month last year, according to state Comptroller Don Huffines.
The figures, released on Tuesday, reflect purchases made largely in July before businesses remitted the money to the comptroller’s office.
Receipts increased across all major business sectors, with construction and mining among the strongest performers. Retail sales tax collections were almost 10% higher than a year earlier, while receipts from online shopping rose by more than 20% for the second consecutive month.
Texas sales tax revenue reaches $35.2bn in 2026
Manufacturing collections increased by 5.2%, while wholesale trade rose by 1.7%. Revenue from the service sector climbed 8.2% and restaurant receipts were up 3.8%.
For the first eight months of 2026, Texas collected $35.2 billion in sales tax revenue, 7.3% more than during the equivalent period in 2025.
Sales tax is the state’s largest source of funding for its budget, accounting for 58% of all tax collections, the Texas Comptroller’s Office said.
Other major tax receipts also recorded mixed results in August. Motor vehicle sales and rental taxes generated $670 million, up 13% year on year, while motor fuel tax revenue fell 6% to $342 million.
Oil production tax receipts rose 18% to $526 million. Natural gas production taxes increased 4% to $202 million, hotel occupancy tax revenue climbed 12% to $76 million, and alcoholic beverage taxes were up 6% at $150 million.
Huffines said the rise in sales tax revenue strengthened the case for reducing property taxes in Texas.
“The increased revenue from state sales tax is a positive sign for meaningful property tax relief for Texans,” he said in a statement. “The Legislature should prioritise lowering the cost of homeownership by dedicating elevated sales tax collections to reducing property taxes.”
The latest figures follow a 10.1% year-on-year increase in Texas sales tax revenue reported for July, according to the comptroller’s office.
