Rio Grande Valley cities saw more than $183M in sales tax payments through May — up 6.6% collectively

Most cities across the Rio Grande Valley reported higher sales tax allocations through May compared to the same time frame in 2025, according to data from the Texas Comptroller of Public Accounts. 

Overall, the 42 different cities collected $183 million through May, up from $171.6 million through May 2025, an increase of 6.6% over the year. 

In general, larger cities maintained the strongest revenue bases, and smaller communities experienced greater volatility. 

For example, the city of Edinburg grew by 5.3% over the year to $17.6 million; Mission grew by 2% to $12.8 million; Harlingen grew by 5.8% to $16.2 million; Brownsville grew by 5.2% to $27.9 million; and Pharr grew by 5.3% to $13.7 million. 

By contrast, the community of La Grulla saw a 120% increase in sales tax payments totaling $126,640 through May. 

The city of McAllen continued to collect the largest amount of sales tax payments, totaling $46.1 million, an increase of 7.2% over the previous year. 

Sales and use taxes are a key economic indicator — not just for retail stores, but also for the value of materials used in construction projects. The state collects taxes and allocates them back to municipalities, where they help fund operations and economic development efforts.

The city of Port Isabel continues to outpace South Padre Island in sales tax revenue, as visitors pass through the port city to reach the island, and there has been significant industrial construction nearby at the Port of Brownsville. 

Port Isabel saw its sales tax payments reach $2.2 million through May, up 39% from the year earlier. South Padre Island generated $1.8 million through May, up 4.3%. 

The Willacy County cities of Lyford and Raymondville saw jumps too — 32.5% and 16.2%, respectively, topping $772,948 and $104,134. There’s a growing data center cluster under construction near those two cities. 

In Starr County, Rio Grande City grew by 13.8% over the year to $3 million in sales tax revenue through May. In Roma, further west in Starr County, sales tax revenue grew by 2.3% over the year to $819,513.