The share of hotel occupancy tax receipts allocated to cities across the Rio Grande Valley increased by an average of 16% over the year when comparing January through September between 2025 and 2026, according to Texas Comptroller data analyzed by the Rio Grande Valley Business Journal.
The tax receipts included hotels, motels, booking applications, and short-term rentals such as Airbnb, Vacasa, and HomeAway, also known as Vrbo. The October 2026 data has been published, but the vast majority of operators have not yet filed their information because it’s not due until towards the end of the month, so that’s why September is the most recent data available.
Hotel tax receipts totaled about $307 million through September 2025, increasing to $347 million in 2026. Records show more than 300 hotels and motels across the Valley and about 1,500 short-term rental properties.
The Valley’s largest visitor market is South Padre Island, which attracts nearly 4 million people each year. Total tax receipts on the island were $191 million through September, up nearly 22% over the year.
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