Sales Tax Revenue Totals $3.97 Billion in September
Acting Texas Comptroller Kelly Hancock announced that state sales revenue tax in September totaled $3.97 billion. This is 3.2% more than in September 2024. The majority of September sales tax revenue is based on sales made in August and remitted to the agency in September.
Total sales tax revenue for the three months ending in September 2025 was up 5.3 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 — $651 million, up 10 percent from September 2024;
- motor fuel taxes — $341 million, up 2 percent from September 2024;
- oil production tax — $444 million, down 14 percent from September 2024;
- natural gas production tax — $224 million, up 13 percent from September 2024;
- hotel occupancy tax — $59 million, down 4 percent from September 2024; and
- alcoholic beverage taxes — $150 million, up 1 percent from September 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.
The Comptroller’s full press release can be found here.
Texas GDP Expanding at Annual Rate of 6.8%
Governor Greg Abbott announced that data released by the U.S. Bureau of Economic Analysis (BEA) shows the Texas economy growing at a faster rate than the nation as a whole. The state’s real gross domestic product (GDP) expanded in the second quarter of 2025 at an annual rate of 6.8.%, ahead of the U.S. rate of 3.8%.
Data from BEA also shows personal incomes in Texas increased in the 2nd quarter at an annual rate of 6.4%, ahead of the national average of 5.5%.
The Governor’s full press release can be found here.
