Huffines Reports State Sales Tax Revenue Totaled $4.6 Billion in July

August 3, 2026

(AUSTIN) - Texas Comptroller Don Huffines today said state sales tax revenue totaled $4.6 billion in July, 10.1% more than in July 2025. The majority of July sales tax revenue is based on sales made in June and remitted to the agency in July.

"State sales tax collections grew by more than 10% for the second time this fiscal year, well above the rate of general price inflation," Huffines said. "Growth was strong in nearly all major sectors, with receipts from the retail trade sector growing at their fastest pace since the pandemic.

"The Texas economy is strong and continues to grow. The increased tax revenue to the state should also put the Legislature in position to deliver meaningful property tax relief during the next legislative session. Governor Greg Abbott has made this a priority, and I will work with him and all our state leaders to accomplish this goal.

"Lowering property taxes will make housing more affordable and free up money in the family budget for everyday expenses like gas and groceries."

Receipts from the sectors mainly affected by business spending were up significantly compared with a year ago. The wholesale trade sector was up more than 11% and construction was up nearly 10% compared with July 2025. The manufacturing sector was up approximately 5%. The mining sector showed declines due to higher than usual refund activity.

The retail trade sector, the largest sector, was up more than 14% compared with last July. This marks the second double-digit gain for the sector this fiscal year. Remittances from electronic shopping, clothing and accessory stores and general merchandise stores were all up significantly over the same month a year ago. Remittances from the services sector were up by more than 11% compared with last July.

Receipts from restaurants were up nearly 5% from a year ago, above the rate of inflation for food away from home.

Calendar year-to-date sales tax revenue was $30.6 billion, up 7.4 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% of all tax collections.

Texas collected the following revenue from other major taxes:

• motor vehicle sales and rental taxes - $737 million, up 18% from July 2025;
• motor fuel taxes - $331 million, up 10% from July 2025;
• oil production tax - $567 million, up 31% from July 2025;
• natural gas production tax - $241 million, up 36% from July 2025;
• hotel occupancy tax - $84 million, up 17% from July 2025; and
• alcoholic beverage taxes - $157 million, up 7% from July 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.