Texas Comptroller Don Huffines announced Oct. 8 that cities, counties, transit systems and special purpose districts will receive $1.3 billion in local sales tax allocations based on September collections, 11.6% more than a year ago, according to a news release from the Comptroller’s office.
Huffines said the increase gives many local governments an opening to reduce property taxes. “The Texas economy is strong, and the rising sales tax revenue received by many local governments is an opportunity for local elected officials to reduce property taxes,” Huffines said. “Lower property taxes can help make housing more affordable and reduce the everyday financial strain many Texans face.”
According to the release, the state collected $4.4 billion in net state sales tax revenue and $1.3 billion in net local sales tax revenue in September. Combined state and local net sales tax revenue for the month totaled $5.7 billion, which the Comptroller’s office said was 12.4% more than in September 2025.
The agency said the collections come mostly from businesses that report tax monthly and reflect their August sales, while businesses that report quarterly or annually remit on a different schedule. Net revenue reflects collections after refunds, overpayment credits and prepayment adjustments, and local amounts are also net of the state’s 2% administrative fee, which is deposited to the General Revenue Fund, the release said.
The Comptroller’s office provided a breakdown of the October allocations by type of recipient. Cities will receive $796.0 million, up 11.3% from October 2025. Transit systems will receive $263.9 million, up 10.6%. Counties will receive $79.0 million, up 11.6%, and special purpose districts will receive $133.4 million, up 15.2%.
Year-to-date allocations are up 7.3% overall, the office said. By recipient, the year-to-date gains are 6.7% for cities, 7.2% for transit systems, 8.1% for counties and 10.3% for special purpose districts.
The Comptroller’s office said details on allocations to individual cities, counties, transit systems and special purpose districts are available in its Monthly Sales Tax Allocation Comparison Summary Reports. The figures offer local officials a snapshot of sales tax receipts as they weigh budgets and tax rates in the months ahead.