The price of a home is only part of what you will pay for it.
Your property tax rate follows you every month for as long as you own your home. In many new-home communities, a MUD tax is added on top of county and school taxes, which can raise a monthly payment by a few hundred dollars.
What is a MUD tax?
A Municipal Utility District, or MUD, is a local district that sells bonds to pay for the water, sewer, and drainage systems a new neighborhood needs. The Homeowners who live there repay those bonds through a MUD tax on their annual property tax bill, often for twenty to thirty years.
That is why MUD communities often carry total rates near or above 3%.
A higher tax rate shows up directly in your monthly payment.
The added cost continues long after move-in day.
Why some communities have MUDs and others do not
Large master-planned communities are often built far from existing utilities, so developers use a MUD to finance that infrastructure and pass the cost to Homeowners. Communities near established utility service usually do not need one, because the infrastructure is already in place.
How Home Creations chooses where to build
Since 1981, we have looked beyond the lot price to the total cost of ownership. Five of our six communities carry no MUD tax, and at Hill & Dale Ranch the total rate is still lower than a nearby competing community.
What the difference means for your budget
Here are a few examples of how our communities compare with nearby new-home communities. Move the slider to your home price to see the estimated savings.
The Enclave at Spring Branch
No MUD tax and a total rate well below many Conroe-area communities, so more of your monthly budget stays with your family.
| At $275,000 | Per year | Per month | Over 10 years |
|---|---|---|---|
| The Enclave at Spring Branch | $4,361 | $363 | $43,612 |
| Granger Pines | $8,074 | $673 | $80,737 |
| Your estimated savings | $3,713 | $309 | $37,125 |
Lexington Heights
No MUD tax, planned amenities, and a total rate well below nearby new-home options in Willis.
| At $275,000 | Per year | Per month | Over 10 years |
|---|---|---|---|
| Lexington Heights | $4,482 | $374 | $44,825 |
| Enclave at Willis | $7,502 | $625 | $75,017 |
| Your estimated savings | $3,019 | $252 | $30,192 |
Hill & Dale Ranch
Hill & Dale Ranch has a MUD, and its total rate is still half a percentage point below a nearby Splendora community.
| At $275,000 | Per year | Per month | Over 10 years |
|---|---|---|---|
| Hill & Dale Ranch | $7,425 | $619 | $74,250 |
| The Canopies | $8,800 | $733 | $88,000 |
| Your estimated savings | $1,375 | $115 | $13,750 |
Questions to ask any builder
Use these questions to compare every community you visit on equal footing.
- What is the total property tax rate here?
- Is the community in a MUD or PID, and at what rate?
- What are the HOA dues and closing fees?
- What is my full monthly payment with taxes and insurance?
MUD tax FAQs
What is a MUD tax in Texas?
A property tax charged by a Municipal Utility District to repay bonds that paid for a neighborhood's water, sewer, and drainage systems.
How long do MUD taxes last?
As long as the district's bonds are outstanding, commonly twenty to thirty years.
Do Home Creations communities have MUD taxes?
Five of our six communities have no MUD tax: Santa Fe and Grand Oaks Reserve in Cleveland, Encino Estates in Dayton, Lexington Heights in Willis, and The Enclave at Spring Branch in Conroe. Hill & Dale Ranch in Splendora has a MUD, with a total rate of 2.70%, lower than a nearby community at 3.20%.
Does the homestead exemption lower MUD taxes?
The Texas homestead exemption removes $140,000 of value from school taxes only. Some MUDs offer their own exemption of up to 20%, so it is worth asking.
How do I know if a home is in a MUD?
Texas law requires the seller to provide a written MUD notice before you sign a contract. The county appraisal district website also lists every taxing entity for an address.
Is a MUD the same as a PID?
No. A MUD charges a tax rate to repay utility bonds, while a PID usually charges a separate annual assessment for community improvements.
A lower tax rate is one more way we help you build a stronger future.
Our New Home Consultants would be glad to walk you through the full cost of ownership and help you find a home and monthly payment that feel right for your family. Schedule a tour today.
Call or text Ella for more information at 832-615-2922
Tax rates are total combined rates per $100 of appraised value, most recently published as of September 2026, and are subject to change. Estimates are for illustration only, use the full home value shown, and exclude homestead and other exemptions. Actual taxes depend on appraised value. Verify current rates with the county appraisal district. Home Creations makes no guarantee of future tax rates.
