Texas Border Business
The City of McAllen has shattered its all-time sales tax record, receiving an unprecedented $11.9 million in February’s sales tax allocation for the same month of December (2024 vs 2023) —a 12.3% increase over last year’s collection for the same period. This milestone reflects McAllen’s continued growth as a premier shopping, trade, and business hub, surpassing the previous high of $10.6 million collected last year.
“McAllen’s long-term strategy of becoming a destination city, encouraging booming residential and commercial development, facilitating international trade and commerce, and becoming an economic powerhouse is reflected in our strong sales tax figures,” said Mayor Javier Villalobos.
McAllen is a retail destination, drawing in shoppers from South Texas, northern Mexico, and beyond. In 2024, McAllen ended the year with a whopping $96.8 million dollars in total sales tax generated from approximately $4.8-plus billion in taxable sales. McAllen was ranked #1 in the Rio Grande Valley for total sales tax allocation, #15 in the state of Texas overall, and ranked second in sales tax per capita in Texas for cities over 100,000 in population.
In McAllen, sales tax revenue is derived from a two percent sales tax rate of taxable goods and services that include categories such as retail, wholesale trade, retail, construction, manufacturing, accommodations, food, and entertainment sales to name a few.
“Reaching historic new heights in sales tax revenue allows the city to provide one of the lowest property taxes in the region, provide for nationally acclaimed quality-of-life services and programs, and make McAllen the gem of the Rio Grande Valley,” said McAllen City Manager Isaac J. Tawil.
Year to date sales tax allocation for the City of McAllen is currently up 6.14% from last year. Since 2018, the City of McAllen sales tax allocation has increased 51%, growing $32.69 million.
