Texas Sends $1.4 Billion in Local Sales Tax

Local governments received net sales tax allocations 14.6% higher than a year earlier, as the state reported $6.15 billion in combined October collections.

Updated on Nov. 13, 2026 in Philanthropy

Texas Sends $1.4 Billion in Local Sales Tax

Live Poll

Should the Texas Legislature use sales tax revenue to cut property taxes?

The Texas Comptroller distributed $1.4 billion in net local sales tax revenue collected in October to communities across the state. Combined state and local net sales tax collections for October totaled $6.15 billion, 11.9% higher than in October 2025.

Why it matters

Texas Comptroller Don Huffines said cities and counties can use the increased sales tax revenue to reduce property taxes. The Texas Legislature may consider directing these revenues toward property tax relief for Texans next year.

Local net sales tax allocations of $1.4 billion rose 14.6% over the prior year, while combined state and local collections reached $6.15 billion, up 11.9% from October 2025. The state's 2% administrative fee on local amounts and the Legislature's eventual use of the revenue remain to be determined.

The players

Texas Comptroller of Public Accounts

The state agency responsible for collecting and distributing Texas sales tax revenue and publishing state revenue reports.

Don Huffines

The Texas Comptroller who announced the distribution and said cities and counties can reduce property taxes with the added revenue.

The details

The October collections reflect mostly businesses that report sales tax monthly, based on their September sales, along with quarterly filers. Figures are net of refunds, overpayment credits and prepayment adjustments, and local amounts are reduced by the state's 2% administrative fee, which goes to the General Revenue Fund.

October: Net state and local sales tax revenue was collected.
October 2025: Comparison period for the 11.9% growth in combined collections.
Next year: The Texas Legislature may consider using the revenues for property tax relief.

Market Landscape

The growth in local allocations reflects how Texas's sales tax distribution system channels consumer spending into local budgets that otherwise depend heavily on property taxes. The result positions local governments to weigh revenue gains against the state's stated goal of easing property tax burdens.

Texans may see property tax relief if cities and counties use the added sales tax revenue to lower local tax rates. The Legislature's decision next year will determine whether these funds are directed toward reducing property taxes statewide.

The takeaway

Local governments and residents should track how the Legislature uses these revenues, since the next session could determine whether sales tax growth translates into lower property tax bills.