State sales tax revenue in Texas reached $4 billion in February, according to Acting Texas Comptroller Kelly Hancock. This figure represents a 3.8 percent increase compared to February 2025, with most of the revenue reflecting sales made in January and remitted in February.
“Texas continues to show steady economic momentum,” Hancock said. “Sales tax remains the backbone of our state budget, and these numbers reflect a resilient Texas economy that continues to outpace inflation and support responsible, conservative budgeting.”
Business-driven sectors showed mixed results last month. Collections from construction and manufacturing were slightly below those from February 2025. The wholesale trade sector saw an increase of more than 8 percent, while mining sector remittances dropped significantly due partly to increased refund activity.
Consumer-driven sectors experienced growth during the same period. Receipts from services increased by nearly 10 percent, and retail trade—the largest sector—rose by more than 4 percent compared to last year. Within retail trade, electronics and appliance stores as well as sporting goods and hobby stores reported increases exceeding 10 percent over the previous year. However, home improvement stores and furniture and home furnishings stores recorded declines.
Restaurant receipts grew by more than 4 percent from a year ago, slightly surpassing inflation for food away from home.
Over the three months ending in February 2026, total sales tax revenue was up 5.6 percent compared with the same period a year earlier. Sales tax remains the primary source of state funding for Texas’s budget, making up about 58 percent of all tax collections.
Other major taxes collected included $641 million from motor vehicle sales and rental taxes (down 1 percent), $310 million from motor fuel taxes (up less than 1 percent), $386 million from oil production tax (down 21 percent), $181 million from natural gas production tax (down 18 percent), $51 million from hotel occupancy tax (down 11 percent), and $126 million from alcoholic beverage taxes (down 2 percent).
For additional details on monthly collections or historical information on state taxes since 1972, resources are available through the Comptroller’s Monthly State Revenue Watch at https://comptroller.texas.gov/transparency/revenue/watch/ and Sources of Revenue publication at https://comptroller.texas.gov/transparency/revenue/sources.php.
