State Treasurer Todd Russ today released the August 2025 State Tax Revenue Report, showing a seasonal dip in monthly revenue but continued steadiness in long-term revenues. Over the past 12 months, total collections reached $16.97 billion, up slightly by 0.1% from the previous year.
“As a seasonal slowdown occurs, manufacturing exports continue to trend higher showing signs Oklahoma’s economic base remains steady,” said Treasurer Russ. “As we move into the fall, our state appears to be well-positioned to navigate national headwinds with a balanced budget and resilient economy.”
Key Takeaways from the August 2025 Tax Revenue Report
Income Tax: Fell 17.5% month-over-month but rose 5.1% compared to August 2024, showing underlying stability.
Sales & Use Tax: Edged up 0.3% from July, reaching $594.9 million, though down 1.8% from last year.
Gross Production Tax (oil & gas): Dropped 31.9% from July, reflecting energy market volatility, but grew 2.3% year-over-year.
Motor Vehicle Tax: Declined 9.3% month-over-month and 10.7% year-over-year, reflecting weaker auto sales activity.
Other Sources: Down 7.3% from July, reflecting softness across more than 70 smaller revenue streams.
Oklahoma’s Business Conditions Index: Rose slightly to 50.3, signaling modest regional growth.
Manufacturing Exports: Up 4.5% year-to-date, reaching $3.5 billion in the first half of 2025 compared to $3.3 billion in 2024.
Ties to National Trends
Across the U.S., states are seeing mixed revenue performance as the economy adjusts to spotty but persistent inflation (2.7%) and elevated interest rates maintained by the Federal Reserve. Consumer spending has cooled in some sectors, and national employment growth is moderating. Finally, something the Feds have been waiting to see.
National unemployment held at 4.2%, while Oklahoma remains well below, at 3.1%, underscoring continued local job market strength.
Energy markets remain volatile, affecting producing states like Oklahoma, though longer-term demand continues to provide support.
Manufacturing activity nationwide has slowed, but Oklahoma exports continue to grow, reinforcing the state’s sector diversity.
With inflation easing and economic activity slowing, analysts expect the Federal Reserve will consider an interest rate adjustment in the months ahead, a move that could influence both state revenues and household budgets.
“Every tax dollar reflects a real piece of economic activity—from paychecks to energy production,” Russ added. “Even as monthly numbers fluctuate, Oklahoma families and businesses are continuing to fuel long-term stability for our state.”
The complete August 2025 Tax Revenue Report is available at treasurer.ok.gov, including breakdowns by tax category, sector, and month.
For questions, interviews, or deeper data insights, contact lara.blubaugh@treasurer.ok.gov.
