September 3, 2025

Acting Texas Comptroller Kelly Hancock Announces State Revenue for Fiscal 2025, August State Sales Tax Collections

(AUSTIN) — Acting Texas Comptroller Kelly Hancock today released totals for fiscal 2025 state revenues, in addition to announcing monthly state revenues for August.

• General Revenue-related revenue for fiscal 2025 totaled $86.08 billion, up 2.7 percent from fiscal 2024.
• All Funds revenue was $183.05 billion, up 1.1 percent from fiscal 2024.
• All Funds tax collections were $84.2 billion, up 2.8 percent from fiscal 2024.
• Sales tax revenue was $49.06 billion, up 4 percent from fiscal 2024.
• Motor vehicle sales and rental tax revenue was $7.08 billion, up 3.7 percent from fiscal 2024.
• Franchise tax revenue was $7.08 billion, up 3.2 percent from fiscal 2024.
• Oil production tax revenue was $5.38 billion, down 14.6 percent from fiscal 2024.
• Natural gas production tax revenue was $2.48 billion, up 16.2 percent from fiscal 2024.

“Texas’ economy remains strong, with sales tax collections rising and key industries like manufacturing, services and retail all showing healthy growth,” Hancock said. “These numbers reflect confidence from families and businesses alike, keeping our state on solid footing.”

Hancock also said state sales tax revenue totaled $4.31 billion in August, 7.7 percent more than in August 2024. 

The majority of August sales tax revenue is based on sales made in July and remitted to the agency in August. 

“State sales tax collections grew at the fastest pace since February 2023,” Hancock said. “For the fiscal year, the result is a finish modestly ahead of forecast." 

Among sectors primarily influenced by business spending, receipts from the manufacturing sector were particularly robust, coming in with double-digit growth. Growth in receipts from the wholesale trade sector was also strong, while remittances from the construction sector were up slightly. Receipts from the mining sector were essentially flat.

Among the large sectors driven mainly by consumer spending, growth in receipts from the services sector was most rapid, up almost 10 percent. Growth in receipts from retail trade was strong, led by growth in receipts from online general merchandisers and electronics and appliance stores. There were, however, declines from a year ago in receipts from home improvement centers and health and personal care stores.

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

Total sales tax revenue for the three months ending in August 2025 was up 5 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 in August:

• motor vehicle sales and rental taxes — $592 million, down 9 percent from August 2024;
• motor fuel taxes — $365 million, up 11 percent from August 2024;
• oil production tax — $445 million, down 18 percent from August 2024;
• natural gas production tax — $194 million, up 143 percent from August 2024;
• hotel occupancy tax — $68 million, down 1 percent from August 2024; and
• alcoholic beverage taxes — $142 million, up 2 percent from August 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 updated Sources of Revenue publication.