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FOR IMMEDIATE RELEASE
Contact Us | 512-463-4070 | 800-531-5441 ext. 3-4070
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Comptroller Huffines Distributes $1.3 Billion in Net Local Sales Tax Collected in September to Texas Communities
(AUSTIN) — Texas Comptroller Don Huffines said many cities and counties can reduce property taxes due to increased sales tax revenue as local governments will receive $1.3 billion in allocations of net local sales tax collected in September, 11.6% more than a year ago.
"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.”
In September, the state collected $4.4 billion in net state sales tax revenue and $1.3 billion in net local sales tax revenue, which will be distributed to Texas cities, counties, transit systems, and special purpose districts. Combined state and local net sales tax revenue collected in September totaled $5.7 billion, 12.4% more than in September 2025. These collections come mostly from businesses that report tax monthly and reflect their August sales. Businesses that report quarterly or annually remit on a different schedule.
Net revenue reflects sales tax collections after refunds, overpayment credits and prepayment adjustments. Local amounts are also net of the state’s 2% administrative fee, which is deposited to the General Revenue Fund.
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| October Local Sales Tax Allocations (based on September 2026 collections) |
Recipient
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Oct. 2026
Allocation
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Change from
Oct. 2025
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Year-to-Date
Change
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Cities
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$796.0M |
↑11.3% |
↑6.7% |
| Transit Systems |
$263.9M |
↑10.6% |
↑7.2% |
| Counties |
$79.0M |
↑11.6% |
↑8.1% |
| Special Purpose Districts |
$133.4M |
↑15.2% |
↑10.3% |
| Total |
$1.3B
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↑11.6% |
↑7.3% |
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The Texas Comptroller of Public Accounts serves as the chief financial officer — treasurer, check writer, tax collector, procurement officer, and revenue estimator — for the world's eighth-largest economy. The agency also administers statewide initiatives, including the Texas Broadband Development Office, State Energy Conservation Office, Texas Opioid Abatement Fund Council, Texas college savings plans, and more.
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