State sales tax revenue totaled $4.04 billion in June, 2.5% more than in June of last year, said Kelly Hancock, the acting Texas comptroller.

“State sales tax collections exhibited moderate growth compared with June 2024,” Hancock said in a July 1 release. “This comes on the heels of consecutive months of strong growth in both April and May.”

Sales tax is the largest source of state funding for the state budget, accounting for 58% of all tax collections. The majority of June sales tax revenue is based on sales made in May and remitted to the agency in June.

“Among the large sectors driven mainly by consumer spending, the retail trade and service sectors were both up moderately compared with June 2024,” Hancock said.

“Within retail trade, the largest sector — electronic shopping — had the largest gain, showing double digit growth compared with the same month a year ago,” he said. “Receipts from furniture stores and home improvement centers declined significantly from a year ago, and collections from general merchandise stores declined slightly.”

Receipts from restaurants came in higher than a year ago, above the rate of inflation for food away from home for May.

Hancock said that among the sectors influenced primarily by business spending, remittances from the manufacturing sector showed the strongest growth and receipts from the construction sector had positive growth for the first time since February.

The comptroller said collections from the mining sector were down after exhibiting strong growth the previous two months.

Total sales tax revenue for the three months ending in June 2025 was up 4.8% compared with the similar period one year ago.

Texas collected the following revenue from other major taxes: motor vehicle sales and rental taxes of $629 million, up 12% from June 2024; motor fuel taxes of $343 million, up 1%; oil production taxes of $405 million, down 18% from June 2024; natural gas production taxes up 25% to $214 million; hotel occupancy taxes of  $68 million, down 5% from June of last year and alcoholic beverage taxes of $161 million, up less than 1%.

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