Sales Tax at Work: From Register to Community

Summary

The Rio Grande Valley’s sales tax in one quarterly update: $4.29 billion in taxable sales across the four counties in April–June 2026, and $361.1 million paid to the 44 Valley cities with a city sales tax from January to October 2026, up 5.9%. It maps where the money is generated, compares growth by county and city, and follows the local share to the economic development corporations that turn it into roads, parks and jobs.

Key takeaways

• $4.29B in taxable sales in the four counties in Q2 2026 (April–June), generating about $268M in state sales and use tax; Hidalgo County produced 65.5%
• $361.1M in city sales tax paid to the 44 Valley cities, January–October 2026: up 5.9%, or $20.1M, with 39 of 44 cities ahead of 2025
• Every county grew: Willacy +16.9%, Starr +10.4%, Cameron +5.8% and Hidalgo +5.7%
• McAllen led with $89.9M (+8.1%), about $597 per resident, roughly twice Brownsville ($283) or Mission ($286)
• Of the $8.25 in tax on a $100 purchase, up to $2.00 stays local; McAllen sends 50¢ of it to the Development Corporation of McAllen, a $23.0M half-cent budget in FY 2024–25