Texas saw its state sales tax revenue hit $4.01 billion in October, a 5.4% increase over last year, as announced by Texas Comptroller Glenn Hegar. The jump, largely based on September’s sales figures, reflects robust consumer demand, particularly in the retail sector, which saw a notable 5.5% rise—its largest growth since April 2023. Gains were seen in online shopping, grocery, and home improvement, while business-driven sectors like wholesale trade also contributed to the rise.

However, growth wasn’t universal. Collections from construction and mining fell, alongside declines in taxes on hotel occupancy, alcoholic beverages, and oil production, with the latter experiencing a steep 26% drop. Although restaurant receipts remained flat, they lagged behind inflation rates for dining out, indicating slower growth in consumer dining expenditures.

The state’s overall sales tax income rose 2.4% for the three months ending in October, underscoring its importance as Texas’ top revenue source, making up 58% of the state’s tax collections. In addition to sales tax, motor fuel taxes climbed by 2%, while motor vehicle sales tax dipped slightly.

For detailed monthly updates on Texas state revenue, check the Comptroller’s Monthly State Revenue Watch.