Texas Sales Tax Revenue Hits $4 Billion in March Amid Strong Economic Growth

April 6, 2026 – AUSTIN — Texas collected $4 billion in state sales tax revenue in March, a 10 percent increase from the same month last year, signaling continued strength in the state’s economy, Acting Comptroller Kelly Hancock announced.

The majority of March revenue reflects sales made in February, with collections showing the fastest growth rate since early 2023. Hancock credited the gains to broad-based economic expansion, with growth outpacing inflation and driven largely by business activity.

Sectors tied to business spending posted some of the strongest increases. Wholesale trade, construction, and mining all saw double-digit gains compared with March 2025, while manufacturing rose about 7 percent. Retail trade—the largest contributor to sales tax revenue—grew more than 9 percent, marking its strongest performance since the post-pandemic rebound in 2022.

Online shopping stood out, with electronic retail receipts jumping more than 16 percent year over year. Traditional retail categories such as clothing, health products, and general merchandise also posted solid gains. Restaurant spending rose more than 7 percent, reflecting resilient consumer demand.

Sales tax remains Texas’ largest source of state funding, accounting for 58 percent of all tax collections. Over the past three months, total sales tax revenue is up 6.9 percent compared with the same period last year.

However, other revenue streams showed mixed results. Motor vehicle taxes fell sharply, while oil and natural gas tax revenues declined, highlighting ongoing volatility in energy markets.