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Sales tax collections on May spending across Texas were up more than 4% compared to May of 2025, according to the Texas State Comptroller's Office.
Sales tax collections are one good indicator of how well an economy is doing. The more Texans spend, the higher those tax collections rise.
The state comptroller collected state and local sales taxes from May sales in June and then reported the results before the Fourth of July weekend. The state agency returns local taxes back to those jurisdictions, such as cities.
Collections from all retail sales statewide were up 3% this May compared to last. Spending on electronics led the way among all retail sectors.
Statewide sales taxes from restaurants were up nearly 5% in the same comparison, while hotel occupancy taxes were up 9%.
Here in San Antonio, sales tax collections on May spending amounted to $36 million, a nearly 9% drop in the May-to-May comparison.
But the city sales tax rate was also a little lower this May compared to last, dropping from 1.250% to 1.125% on Jan. 1, 2026, perhaps explaining why consumer spending appeared to be down so much in the Alamo City.
Austin led the biggest Texas cites with an 8% increase in May sales tax collections. Houston and Dallas saw increases of 7% and 6% respectively.
The state's oil production tax raked in $726 million from the month of May, an increase of 82% over last May, the biggest monthly increase ever.
The sales tax is the largest source of state funding for the state budget, accounting for 58% of all tax collections, the comptroller's office reported.
