McAllen sales tax allocation rises nearly 6% as Hidalgo County distributions grow
January payment reflects November retail activity across the county
McAllen News, McAllen TX News, Sales tax
Staff Report
McAllen, TX - McAllen received more than $8.6 million in sales tax revenue for January as cities across Hidalgo County shared in a statewide distribution totaling $1.2 billion, according to the Texas Comptroller’s Office.
McAllen’s allocation totaled $8,653,735.87, a 5.69% increase compared with $8,187,400.45 received during the same period last year. The payment reflects local sales made in November by businesses that report taxes monthly.
Hidalgo County sales tax distributions
McAllen received the largest sales tax allocation of any city in Hidalgo County in January, accounting for more than $8.6 million of the county’s total municipal distributions. The city’s payment exceeded allocations to other major population centers, including Edinburg at $3.15 million and Pharr at $2.76 million, reflecting McAllen’s role as the county’s primary retail and commercial hub.
Cities throughout Hidalgo County posted mixed results in the latest distribution. Several communities reported year-over-year gains, including Pharr, which saw an increase of more than 14%, San Juan with nearly 11% growth, and Donna, which rose more than 7%.
Some cities experienced decline
Other cities experienced declines, including Mission, Edinburg, and La Joya, reflecting uneven consumer spending patterns across the region.
Statewide revenue trends
Acting Texas Comptroller Kelly Hancock announced that local governments statewide received $1.2 billion in January sales tax allocations, an increase of 4.9% compared with January 2025. The funds were distributed to cities, counties, transit systems, and special purpose districts.
Sales tax revenue remains a primary funding source for municipal services, including public safety, infrastructure, and community programs.
Source -- Texas Comptroller of Public Accounts.