Most cities across the Rio Grande Valley reported higher sales tax allocations through April compared to the same period in 2025, according to data from the Texas Comptroller of Public Accounts.
The gains signal continued economic activity across the region, though growth varied widely by market, with larger cities maintaining the strongest revenue base and smaller communities seeing more volatility.
Sales and use taxes are a key economic indicator — not just for retail stores, but also the value of material used in construction projects. The state collects the taxes and distributes allocations back to municipalities, where they help fund operations and economic development efforts.
While city population was a common indicator for the scale of sales tax revenue, there were some outliers.
Despite being the second largest city by population, McAllen has long led the Valley with the largest sales tax revenue base, which is on track to surpass $100 million this year.
In 2024, McAllen had 148,700 residents while Brownsville had 191,900.
During the first four months of the year, McAllen collected more than $36.4 million in sales tax revenue, up 6.8%.
Meanwhile, Brownsville, the Valley’s largest city, collected $21.8 million in sales taxes during the same time frame, up 4.2%.
Edinburg, with a population of 108,700 residents as of 2024, collected $13.7 million in sales tax revenue between January and April — up 4.4% over the year.
Likewise, the city of Mission, despite having a larger population than Harlingen and Pharr, with 88,500 compared to 72,200 in Harlingen and 81,100 in Pharr, lagged behind in sales tax revenue.
Mission generated about $10 million in sales tax revenue, a decline of less than 1% over the year.
Harlingen collected $12.8 million in sales tax revenue, up 6.8% over the year.
Pharr collected $10.8 million in revenue, up 4.6% over the year.
Weslaco, with 43,800 residents, saw growth slow to less than 1%, with sales tax revenue reaching $7.2 million.
The city of San Juan, with 37,300 residents, grew its sales tax revenue by 8.8% over the year to $2.6 million.
Nearly a dozen cities across the Valley saw double-digit growth in sales tax revenue — but Port Isabel stands out.
The city, which had 5,200 residents as of 2024, grew by 43% over the year to $1.6 million.
Meanwhile, the nearby community of South Padre Island, which has about 2,000 residents, saw growth of less than 1% over the year to $1.28 million in sales tax revenue.
Smaller communities were among the few that saw a decline in sales tax revenue, with Rancho Viejo down less than 1%, Granjeno down 1.1%, Rio Hondo down 2%, La Joya down 3.5%, and Palm Valley down 4.5%.
Most Read
- Is SpaceX quietly building a data center at Starbase? Job postings offer clues
- 25 Mexican businesses eye McAllen expansion after city pitches U.S. market entry program
- SpaceX’s futuristic city of Starbase finalizes massive 7,100-acre annexation. Here’s what we know.
- McAllen metro keeps selling more homes as Brownsville-Harlingen market sees 17% drop through August
- Rio Grande LNG moves closer to getting even bigger at Port of Brownsville
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
Stories That Matter
- New filings detail nearly $11M in UTRGV tennis, football stadium improvements
- Brownsville job fair to connect workers with more than 10,000 opportunities Thursday
- Tamaulipas battles rising screwworm cases as cattle exports remain on hold
- Mission’s first Small Business Expo puts $25K on the line for local entrepreneurs
- McCoy’s gives $10K, tools to launch Mid-Valley construction academy
- UT Health RGV performs new digestive procedure for first time in the Valley
- TSTC bets on advanced manufacturing to meet RGV’s industrial boom
- Pharr’s cross-border business push earns international recognition
- Mission EDC launches search for new CEO with salary up to $190K
- Texas transportation leaders to discuss Rio Grande Valley infrastructure at Mission summit