Texas Sales Tax Revenue Jumps 11.5% as Huffines Points Surplus at Property Taxes

Texas collected $4.4 billion in state sales tax revenue in September, 11.5% more than in September 2025, Comptroller Don Huffines reported October 1. Most of the month’s revenue comes from sales made in August.

Huffines tied the number to the next legislative session. “Sales tax collections remain above prior-year levels, giving lawmakers reason to keep property tax relief as the top priority,” he said. “If collections continue to hold up, the Legislature will be well positioned to dedicate the surplus to meaningful property tax relief that eases the burden on homeowners, businesses, and renters.”

Business spending drove the gain. Receipts grew by double digits in mining, construction, manufacturing, wholesale trade, and real estate, rental and leasing. The office said that growth was partly a rebound from collections held down last year by unusually high refunds, but that most of it reflects more economic activity this year. Retail trade, the largest sector, grew 3%, a little below the 3.4% rise in the Consumer Price Index. Restaurant receipts rose 2.5%, below inflation for food away from home.

For the calendar year so far, sales tax revenue totals $39.6 billion, up 7.8%. Sales tax is the largest source of money for the state budget, at 59% of all tax collections. Production taxes rose faster still in September: the oil production tax brought in $507 million, up 14%, and the natural gas production tax $290 million, up 30%.

Gov. Greg Abbott is pointing the same way. Asked by Texas Scorecard on October 2 how Texas should use the $7.5 billion Washington is repaying for border security, he said, “You know me. I want to dedicate as much as possible to property tax relief.” He added that some of the money must keep paying for border security, and that “I know we can do both.” Texas has also applied for its share of a separate $3 billion Justice Department reimbursement fund, his office said.

The report came a day after the office estimated statewide taxable property value at $4.33 trillion for 2026, a figure Huffines paired with his own call for more property tax relief.

Texas pays for its government mainly through a sales tax its own Legislature wrote and its own comptroller collects. How much of this year’s growth goes back to Texas property owners is a question the Legislature will settle in Austin in 2027.