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Sales and use taxes collected by the 122 Houston-area cities that collect them totaled $1.8 billion during ’25, up 5.9 percent from the $1.7 billion collected in ’24. Adjusted for inflation, collections are up 4.6 percent.

These collections, which cover the purchases of both consumers and businesses, are a proxy for broad economic activity in the region. The increase suggests strength in the local economy even after adjusting for inflation. On a monthly basis, collections in December ’25 were up 7.0 percent over December ’24, emphasizing a strong end to the year.

Among the 24 cities in the metro area that collected $10 million or more in taxes in ’25, activity is up ten percent or more in three cities, up between five and ten percent in five, up less than five percent in 11, and down in five, before adjusting for inflation. These 24 cities accounted for 90.2 percent of all sales tax collections during that time.

The Texas Comptroller of Public Accounts releases allocated payments from the sales and use tax monthly. There is a two-month delay between when the tax is collected and when it is allocated. Data for January will be released in March.

 

Prepared by Greater Houston Partnership Research

 

Clara Richardson
Analyst, Research
Greater Houston Partnership
[email protected]

Colin Baker
Manager of Economic Research
Greater Houston Partnership
[email protected]

Economy

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