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Sales and use taxes collected by the 122 Houston-area cities that collect them totaled $1.0 billion during the first seven months of ’25, up 7.4 percent from the $955.7 million collected over the comparable period in ’24. Adjusted for inflation, collections are up 6.0 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, but that strength may be starting to moderate. While still strong, July’s monthly 6.0 percent increase is down substantially from the double-digit growth seen in the first two months of ’25. The first months of ‘25 saw trade policy uncertainty that encouraged businesses and consumers to frontload their purchases before anticipated price increases or supply chain disruptions.

Among the 24 cities in the metro area that collected $6 million or more in taxes through July of this year, activity is up ten percent or more in five cities, up between five and ten percent in seven, up less than five percent in seven, and down in five, before adjusting for inflation. These 24 cities accounted for 90.4 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 through August will be released in October.

 

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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