State sales tax revenue in Texas reached $4.6 billion in January, marking a 7.1 percent increase compared to the same month last year, according to Acting Texas Comptroller Kelly Hancock. Most of this revenue is based on sales made in December and reported to the agency in January.
“State sales tax collections were very strong last month, with growth well above the rate of general price inflation,” Hancock said. “Results from all major economic sectors were positive, with growth especially strong in receipts from sectors driven by business spending.”
The mining and construction sectors led the gains among industries tied to business spending, both recording double-digit growth over the previous year. The manufacturing sector saw remittances rise by more than 8 percent, while wholesale trade receipts increased by 4 percent compared to January 2025.
Consumer-driven sectors also posted moderate increases. Retail trade sector receipts rose by more than 3 percent over last January, with electronic shopping up nearly 10 percent and general merchandise slightly down. Restaurant receipts increased by more than 3 percent from a year ago but did not keep pace with inflation for food away from home.
Over the three months ending in January 2026, total sales tax revenue was up 6.1 percent compared to the same period a year earlier. Sales tax remains the largest source of state funding for Texas, accounting for 58 percent of all tax collections.
Other major state taxes collected in January included $631 million from motor vehicle sales and rental taxes (up 7 percent), $327 million from motor fuel taxes (up 4 percent), $384 million from oil production tax (down 18 percent), $189 million from natural gas production tax (up 9 percent), $57 million from hotel occupancy tax (up 19 percent), and $161 million from alcoholic beverage taxes (up 4 percent).
More information about monthly collections can be found at the Comptroller’s Monthly State Revenue Watch and additional historical context is available through the updated Sources of Revenue publication.
