Texas cities and counties will receive increased sales tax revenue in August, potentially giving many local governments an opportunity to reduce property taxes, according to Texas Comptroller Don Huffines.
Local governments will receive $1.4 billion in sales tax allocations this month, a 13.6% increase compared with August 2025, Huffines said in a release.
The allocations are based on sales made in June by businesses that report sales tax monthly and on sales made in April, May and June by businesses that file quarterly.
“The increased sales tax revenue distributed to local governments is a strong sign the Texas economy continues to grow,” Huffines said. “It is also a clear signal that many local governments with increased sales tax revenue can dedicate much of that to property tax reduction. Lowering property taxes is one of the best ways to make housing more affordable and help Texans with the cost of gas, groceries and other living expenses.”
Cities will receive $920.9 million in August, a 14.4% increase from August 2025. City allocations are up 6% year to date.
Transit systems will receive $298.5 million, up 12.7% from August 2025 and 7% year to date.
Counties will receive $83.2 million, an increase of 7.5% compared with August 2025. County allocations are up 8.2% year to date.
Special purpose districts will receive $145.1 million, up 13.7% from August 2025 and 9.7% year to date.
Overall, local sales tax allocations are up 6.7% year to date, according to the comptroller's office.
Huffines said the increased revenue could allow local governments to dedicate more of their sales tax gains toward lowering property taxes.
The August allocations represent taxes collected on taxable sales during the reporting periods and distributed to local governments by the comptroller's office.
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