March 3, 2025

State Sales Tax Revenue Totaled $3.8 Billion in February

(AUSTIN) — Texas Comptroller Glenn Hegar today said state sales tax revenue totaled $3.8 billion in February, 4.3 percent more than in February 2024. The majority of February sales tax revenue is based on sales made in January and remitted to the agency in February.

“State sales tax collections exhibited solid growth compared with February 2024,” Hegar said. “This comes on the heels of a strong month in January and was more than the overall rate of general price inflation.

“Remittances from sectors driven mainly by business spending were mixed last month, with receipts from the construction and wholesale trade sectors coming in slightly down compared with a year ago, but receipts from the manufacturing sector showing the largest year-over-year increase in two years. Receipts from the information sector, driven by computer and data processing services, also grew significantly.

“Remittances overall from the retail trade sector grew slightly compared with a year ago. Within the sector, receipts from sporting goods, electronics and appliance, and general merchandise stores were down significantly compared with a year ago. Collections from home improvement stores were up by a large amount after a weak showing the previous month.

“Receipts from restaurants increased slightly once again from a year ago, coming in below the rate of inflation for food away from home for January.”

Total sales tax revenue for the three months ending in February 2025 was up 4 percent compared with the same period a year ago. Sales tax is the largest source of state funding for the state budget, accounting for 58 percent of all tax collections.

Texas collected the following revenue from other major taxes:

• motor vehicle sales and rental taxes — $650 million, up 11 percent from February 2024;
• motor fuel taxes — $310 million, up 2 percent from February 2024;
• oil production tax — $486 million, up 6 percent from February 2024;
• natural gas production tax — $221 million, up 19 percent from February 2024;
• hotel occupancy tax — $57 million, down 2 percent from February 2024; and
• alcoholic beverage taxes — $128 million, down less than 1 percent from February 2024.

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 recently updated Sources of Revenue publication.