McAllen Sets New Sales Tax Record with $11.9 Million Remittance

City Sees 12.3% Growth Over Previous Year, Reinforcing Its Economic Strength

The City of McAllen has achieved a historic milestone, setting a new all-time record for sales tax revenue. In February, McAllen received an unprecedented $11.9 million in sales tax allocation for December 2024, marking a 12.3% increase compared to the same period in the previous year. This remarkable growth solidifies McAllen’s position as a leading retail, trade, and business hub, surpassing the prior record of $10.6 million collected last year.

“McAllen’s long-term strategy of becoming a destination city, fostering residential and commercial development, and enhancing international trade has led to these outstanding sales tax figures,” said Mayor Javier Villalobos.

A premier shopping destination, McAllen attracts visitors from across South Texas, northern Mexico, and beyond. In 2024, the city generated an impressive $96.8 million in total sales tax revenue from over $4.8 billion in taxable sales. McAllen ranked #1 in the Rio Grande Valley for total sales tax allocation, #15 in Texas overall, and second in sales tax per capita among Texas cities with populations exceeding 100,000.

Sales tax revenue in McAllen is derived from a two-percent sales tax rate applied to taxable goods and services across various sectors, including retail, wholesale trade, construction, manufacturing, accommodations, food, and entertainment.

“This record-breaking sales tax revenue enables McAllen to maintain one of the lowest property tax rates in the region while providing nationally recognized quality-of-life services and programs, making McAllen the crown jewel of the Rio Grande Valley,” said City Manager Isaac J. Tawil.

Year-to-date, McAllen’s sales tax allocation has risen by 6.14% compared to last year. Since 2018, sales tax revenue for the city has surged by 51%, amounting to an increase of $32.69 million. McAllen’s economic momentum continues to strengthen, reinforcing its status as a powerhouse in Texas commerce and trade.