(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 $1.4 billion in allocations of net local sales tax collected in October, 14.6% more than a year ago.

“The Texas economy continues to thrive, and I hope the Texas Legislature next year does the right thing, the smart thing, to use these revenues as a tool to help reduce property taxes for Texans, which would help make housing more affordable for homeowners,” Huffines said.

In October, the state collected $4.7 billion in net state sales tax revenue and $1.4 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 October totaled $6.15 billion, 11.9% more than in October 2025. These collections come mostly from businesses that report tax monthly and reflect their September sales, and by businesses that report quarterly. Businesses that report 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.

For details on sales tax allocations to individual cities, counties, transit systems, and special purpose districts, visit the Comptroller’s Monthly Sales Tax Allocation Comparison Summary Reports.

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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