SAN ANTONIO — San Antonio’s sales tax collections rose about 2% in July from a year earlier, even as the city collected a lower sales tax rate, with the state comptroller set to distribute about $44 million to the city.
San Antonio’s city sales tax rate fell from 1.250% to 1.125% on Jan. 1. Despite the reduction, the city recorded slower growth than Texas’ other largest cities.
Austin’s sales tax collections increased 19% from a year earlier, while Dallas posted a 13% increase and Houston rose 8%. None of those cities had comparable sales tax rate changes affecting the figures.
Austin is set to receive nearly $35 million from the latest collections, while Dallas will receive about $43 million and Houston nearly $91 million.
Jeff Webster, president and CEO of the Greater San Antonio Chamber of Commerce, said the increase showed continued consumer spending despite the lower rate.
The Texas comptroller does not provide a sector-by-sector breakdown of San Antonio’s collections. Statewide sales tax revenue reached $4.6 billion in August, about 7% higher than in August 2025. Most of that revenue came from sales made in July.
Statewide retail sales tax collections increased 10% from a year earlier, while service-sector collections rose about 8% and restaurant collections increased nearly 4%.
Tourism also contributed to San Antonio’s economic activity during the period. Statewide hotel occupancy tax collections rose 12% from a year earlier to $76 million.
Visit San Antonio reported a 70% hotel occupancy rate in the San Antonio metropolitan area from June 28 through July 4, compared with 58% in Austin, nearly 57% in Dallas and nearly 56% in Houston.
San Antonio hotels recorded 93% occupancy on July 4, up from nearly 81% a year earlier.
Visit San Antonio President and CEO Mario Bass attributed the increase to the organization’s summer marketing campaign and strong Fourth of July tourism.
Sales taxes provide the largest source of funding for the Texas state budget, accounting for about 58% of all state tax collections.
