Texas sales tax revenue up 5.4 percent from last year

WICHITA FALLS, Texas (KAUZ) - State sales tax revenue totaled $4.5 billion in November this year, a 5.4 percent increase over last year and one of many instances of state economic growth, according to Acting Texas Comptroller Kelly Hancock.

This year, most major economic sectors have seen increased gain, with the mining, construction and manufacturing sectors showing the strongest growth and the wholesale trade sector seeing a decrease after last month’s strong performance. The retail trade and service sectors also experienced higher numbers, with the retail trade sector growing more than 3 percent and electronic shopping, the largest subsector within retail, growing more than 10 percent.

“State sales tax collections showed strong growth last month compared with November 2024,” Hancock said. “Results from nearly all major economic sectors were positive, as the Texas economy continues broad-based expansion at a moderate pace.”

While sales tax is the largest source of funding for the state budget, making up 58 percent of all tax collections, the state also collected the following major taxes according to the Texas Comptroller:

• motor vehicle sales and rental taxes — $582 million, down 1 percent from November 2024;
• motor fuel taxes — $353 million, up 2 percent from November 2024;
• oil production tax — $413 million, down 15 percent from November 2024;
• natural gas production tax — $169 million, up 7 percent from November 2024;
• hotel occupancy tax — $78 million, up 4 percent from November 2024; and
• alcoholic beverage taxes — $155 million, down 1 percent from November 2024.

For more details on monthly collections, visit the Comptroller’s Monthly State Revenue Watch. To learn more about the history of tax policy developments and fees since 1972, visit the Comptroller’s updated Sources of Revenue publication.