Rio Grande Valley cities saw more than $183M in sales tax payments through May — up 6.6% collectively
Illustration of shoppers, reflecting the continued commercial development in north McAllen.

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. 

Add Rio Grande Valley Business Journal as a preferred source on Google

Daily Business Update

Get the latest business news delivered to your inbox every morning for free.

    Try 30 Days Free!

    Get full access to award-winning journalism covering business, real estate, health care, economic trends, and the people shaping the Rio Grande Valley.

    30 Days Free!

    $9.95/month

    Limited time offer

    Subscription renews after your 30 day free trial at $9.95/mo.

    Included Benefits


    • Unlimited access to all articles
    • Daily business news and analysis
    • Subscriber-only content and features
    Get Full Access

    With billions in new deals, Brownsville’s LNG terminal races toward global scale

    November 8, 2025 • 4 min read

    NextDecade’s $13 billion expansion adds two new liquefaction trains, secures long-term buyers, and positions the Rio Grande LNG project to... Read more »

    Edinburg inks deal with Arizona golf management company to run Ebony Hills, Los Lagos golf courses

    August 6, 2026 • 5 min read

    Edinburg selected Troon Golf to manage its two municipal courses as the city looks to end taxpayer subsidies that totaled... Read more »