California Sales Tax Receipts Increase 5.9% in Second Quarter 2026

BREA, Calif., Oct. 26, 2026 /CourierPR/ -- HdL Companies reported that California’s local one-cent sales and use tax receipts increased by 5.9% in the second quarter of 2026, compared with the same period a year ago. Adjusted statewide receipts totaled approximately $2.5 billion, up from $2.3 billion in the second quarter of 2025. These figures underscore the economic activity and tax revenue trends in the state.

Fuel and service stations led the statewide industry growth, with receipts increasing by 18.5% year over year. This significant rise primarily reflects higher fuel prices rather than stronger consumption. Diesel prices specifically increased by nearly 47% year over year, contributing to approximately 42% growth in taxable sales for the Petroleum Products & Equipment business category.

Other major industry groups also reported gains. County and state pools increased by 11.8%, reflecting continued activity in goods shipped into California. General consumer goods saw a 4.5% increase year over year, influenced by summer retail promotions, World Cup-related activity in the Bay Area and Southern California, and shoppers seeking fuel discounts at big-box retailers.

However, not all industry sectors experienced growth. Building and construction results were slightly negative during the quarter, with a 0.4% decline year over year. Food and drug revenues also remained under pressure, decreasing by 0.3% year over year, as consumer preferences shifted and drug stores adjusted their physical footprints.

HdL Companies' September 2026 California Consensus Forecast highlights that higher fuel prices, changing shopping patterns, and variances across industries can significantly affect communities. The company projects statewide growth of 3.2% for fiscal year 2026-27 and 2.1% for fiscal year 2027-28. For local governments, monitoring industry performance, evaluating regional differences, and updating forecasts according to the most recent data can help agencies respond to changing economic conditions while planning for continued service delivery.

Since 1983, HdL Companies has driven $4 billion in recovered revenue for local agencies, helping them safeguard and grow revenues that sustain essential services. More than 900 cities, counties, and special districts rely on HdL for sales tax analytics, local tax administration, economic development support, and other revenue solutions.