State Treasurer Todd Russ released the February 2026 State Tax Revenue Report, showing total monthly revenue of $1.2 billion, a 0.5% increase from February 2025 month to month. But it also reflected a nearly 10% drop in revenue from the gross production tax on oil and gas production in the state.
Revenues were 22.5% lower than January, reflecting typical seasonal changes following stronger start-of-year receipts. Over the last 12 months, Oklahoma revenues total $17.23 billion, up 2.2% year-over-year, continuing a six-month pattern of steady fiscal growth.
“February’s report reflects moderating revenue growth following December’s peak, with the rolling 12-month total remaining positive and reinforcing Oklahoma’s underlying fiscal stability,” said State Treasurer Todd Russ.
“While revenues eased from January’s elevated level, they remain slightly above last February, indicating stability as Oklahoma moves through the early months of 2026.”
Key Takeaways from February 2026 Report
- Total Monthly Revenue: $1.2 billion, up 0.5% year-over-year, reflecting steady economic activity early in 2026.
- Sales & Use Tax: $506.8 million, up 0.9% from last year, signaling stable consumer spending.
- Income Tax: $406.8 million, down 0.3% year-over-year, reflecting softer individual and corporate receipts.
- Gross Production Tax (oil & gas): $87.4 million, down 9.9% from last year, reflecting lower commodity pricing compared to early 2025.
- Motor Vehicle Tax: $72.7 million, up 20.1% year-over-year, indicating stronger vehicle registrations and sales activity.
- Other Sources: $113.7 million, up 0.6% year-over-year, showing modest gains across a broad mix of smaller revenue streams.
- 12-Month Total: $17.23 billion, up $362.9 million (2.2%) year-over-year, demonstrating continued stability in Oklahoma’s overall fiscal base.
Revenue Trend and Economic Context
Revenue growth strengthened through the fall and peaked in December at the highest level since early 2023, before moderating in January and slowing further in February. The 12-month ending revenue growth registered 0.04%, following 0.29% in November, 0.70% in December, and 0.11% in January. While the pace has cooled entering late winter, the rolling annual total remains positive, signaling continued stability rather than a reversal in the broader revenue trend.
Economic indicators also point to improving business activity. Oklahoma’s Business Conditions Index rose to 56.1, well above growth neutral, suggesting strengthening manufacturing momentum after a late-year slowdown. The state’s unemployment rate remained low at 3.6%, compared with 4.3% nationally.
Nationally, consumer fundamentals remain supportive of economic activity. The U.S. consumer delinquency rate declined to 2.72% in the third quarter of 2025, remaining below its long-term historical average, while U.S. households hold a record $181.6 trillion in wealth. Because consumer spending drives a large share of economic growth and tax revenues, these trends provide important context for the steady performance seen in Oklahoma’s economy.
Mortgage rates declined in early 2026, briefly falling below 6 percent for the first time since 2022 before stabilizing near that level. While borrowing costs remain higher than the historic lows seen during the pandemic, the recent moderation may help support housing activity and improve affordability for some homebuyers. Housing demand remains an important driver of economic activity, supporting construction, home-related purchases, and local economic growth across Oklahoma communities.
“Oklahoma’s economy continues to demonstrate balance as national conditions shift,” Treasurer Russ added. “Stable employment, improving manufacturing activity, and healthy consumer balance sheets provide a strong foundation for the state’s revenue outlook.”
The State Tax Revenue Report, formally known as the Gross Receipts Report, provides a broad snapshot of Oklahoma’s economy and is released in conjunction with the General Revenue Fund report to assist policymakers and state agencies with budget planning.
The complete February 2026 Tax Revenue Report is available at treasurer.ok.gov, including breakdowns by tax category, sector, and month.