November 3, 2025

State Sales Tax Revenue Totaled $4.2 Billion in October

(AUSTIN) — Acting Texas Comptroller Kelly Hancock today said state sales tax revenue totaled $4.2 billion in October, 4.6 percent more than in October 2024. The majority of October sales tax revenue is based on sales made in September and remitted to the agency in October.

“Overall, state sales tax collections grew faster than general price inflation,” Hancock said. “This reflects a Texas economy that continues to expand at a moderate pace.”

Collections from the sectors primarily influenced by business spending were once again mixed compared with the same month a year ago. The wholesale trade sector showed the strongest growth, coming in nearly double digits over October 2024 collections. Receipts from heavy and business equipment leasing companies also showed strong growth. Receipts from the mining sector were positive last month following a decline in September, while receipts from the construction and manufacturing sectors were below totals from a year ago.

Receipts from retail trade, the largest sector, were down just slightly compared with the same month a year ago. This is the first time remittances from that sector have declined since July 2024. Among other major sectors driven mainly by consumer spending, the services sector showed moderate growth. Within the retail trade sector, remittances from electronics and appliance stores showed the largest gain, while receipts from home improvement centers and furniture and home furnishings stores declined from a year ago.

Receipts from restaurants were up 2.2 percent from a year ago, below the rate of inflation for food away from home.

Total sales tax revenue for the three months ending in October 2025 was up 5.2 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 — $695 million, up 15 percent from October 2024;
• motor fuel taxes — $333 million, up 3 percent from October 2024;
• oil production tax — $405 million, down 7 percent from October 2024;
• natural gas production tax — $228 million, up 26 percent from October 2024;
• hotel occupancy tax — $65 million, down 1 percent from October 2024; and
• alcoholic beverage taxes — $146 million, down 1 percent from October 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.