Texas Oil & Gas Tax Revenue Down Considerably Y/Y
March 4, 2026 — Texas state tax revenue from oil and natural gas was down considerably during February 2026 when compared with a year ago, while the state’s overall sales tax income was up nearly 4-percent.
Oil production tax to the state was down 21-percent last month, according to the Comptroller’s office, at $386 million, compared to February 2025.
The natural gas production tax was down 18-percent at $181 million compared to a year ago.
Motor fuel taxes, at $310 million, was up less than one-percent last month year-over-year.
In a statement, Acting Texas Comptroller Kelly Hancock said overall state sales tax revenue totaled $4 billion in February, “3.8 percent more than in February 2025. The majority of February sales tax revenue is based on sales made in January and remitted to the agency in February.
“Texas continues to show steady economic momentum,” Hancock said. “Sales tax remains the backbone of our state budget, and these numbers reflect a resilient Texas economy that continues…


