What's MUD taxes in Houston Texas, Harris county?

Real Estate Agent with Signature Living Properties

What's a MUD?

If you're thinking about buying property in Texas, particularly in the greater Houston area and other large metropolitan areas, sooner or later you'll hear the word MUD.  A MUD (Municipal Utility District) is a special governmental entity created by the State of Texas whose main functions are to provide water and wastewater services and to maintain drainage facilities within its boundaries.  A MUD may levy and collect taxes, issue bonds, charge for services, condemn property, enforce restrictive covenants and make regulations to accomplish its purposes.  MUDs come in a variety of names - MUD, WCID (Water Control & Improvement District), WSD (Water Supply District), PUD (Public Utility District), etc.  The list of acronyms is almost endless!


MUDs were created to allow unincorporated areas the financial and legal wherewithal to provide services to commercial and residential customers when comparable services are not readily available (or financially feasible) through municipal providers like the City of Houston.  In the greater (unincorporated) Houston area, there are more than 600 MUDs, most of which provide services to one or two subdivisions/residential developments and the commercial properties immediately surrounding those developments. 


As a Texas real-estate owner, your local MUD will affect your life in two ways - first, you'll get a bill from your MUD each month for your water and wastewater treatment services and drainage control services; and second, you'll receive a property tax bill from your MUD each year to pay for its bonded indebtedness and general maintenance and operating expenses.   


Since your biggest tax burden in Texas comes in the form of property (ad valorem) taxes, your MUD tax rate can be a major or minor component of your overall property-tax burden.  MUD tax rates can range from zero to $1.50 (or more) per $100 of your property's assessed value.  An average MUD tax rate is probably in the $0.50 to $0.75 range.  Putting it into real dollars - if your MUD tax is $0.75 and your property's assessed value is $150,000, then your annual MUD tax burden (before allowances for Homestead and/or other exemptions) would be $1,125.  You'll have to check with each MUD as to what (if any) exemptions they allow.  


As onerous as some of this may sound, just remember - if you live in an incorporated area where services are provided by the city, your monthly and annual burden for these services can and probably will be even higher!


for more info please call me at 832-341-3500 or e-mail me jamierroe@yahoo.com


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Jeremy K. Frost
Keller Williams Realty - Dripping Springs, TX
Associate Broker, CNE, CRS, ePro, PSA

Quite a few MUD's in the suburbs of Austin as well!

Sep 29, 2009 08:11 AM #1
Jamie Roe
Signature Living Properties - The Woodlands, TX

I work with a lot of 1st time home buyers! With them I get a lot questions about what they are and how they work. Hope the market is doing great there!

Sep 29, 2009 08:15 AM #2
Teresa Cwik
Showcase Staging Houston - Houston, TX

oh and what the heck lets throw in the HOA fee as well. Everybody has their hand out nowadays!

Sep 29, 2009 11:43 AM #3
Ramonica Caldwell
Ramonica Caldwell Real Estate Group LLC - Houston, TX
Houston Residential Real Estate Broker

This is great information Jamie! I am wondering how do you find out if your property is within a MUD district. 

May 31, 2013 11:11 AM #4

Thank much very useful info

Dec 16, 2015 08:54 AM #5
Diane Nguyen

Hi Jamie, what do I have to do if I dinn't receive the MUD tax bill (Harris County 480) then they sent me a bill with penalty. Please help me with this. Thanks

Feb 19, 2016 04:46 AM #6
www.housesbyvip.com .
I Buy Houses - Houston, TX
I am a Houston house buyer.

MUDs are a big money making scheme. My subdivion made me pay an application fee plus get a notorized document. What was the point of that?

Sep 19, 2016 07:29 AM #7
Riham sedki

Just received tax invoice due since 2 Feb and additional penalty for march , April 2,449$ why I will pay this money without any benefit. Better if I sall the property.

Mar 18, 2017 12:48 PM #8
Tim Trevor Bulky Joe Bob

Big gobment MOR problems... jest like chilrens.

Mar 29, 2017 09:40 PM #9
Show Me Yourmammeries

Nice tits Jamie!

Mar 29, 2017 09:43 PM #10
Hugh G. Rection

Do you have MUD butt?! That's when you shit yo pants!

Mar 30, 2017 09:15 AM #11
Harry Rockwood

Is a MUD mandated to give disabled veteran exemptions or is it an elective decision made by the MUD Board?

Jul 14, 2017 02:46 PM #12

I live in a MUD, but still get my water from City of Houston (and pay a lot for it). This doesn't seem right. Can you explain how that works?

Aug 05, 2017 10:15 AM #13

This whole mud thing is a joke the developers should be paying if there putting the homes in and we also should have access to how much is left to be paid. We pay for water and sewage and a lot for it it’s rediculous a lot of people don’t have extra money I have been paying for 1900 for 10 years that’s enough.

Oct 29, 2017 06:31 PM #14

I just got my MUD tax bill and my mouth fell open, thought it was a scam when I first read it until I looked it up on this web feed. I just moved from incorporated TX area and paid way less than this for water and sewage combined. Someone or some institution is getting rich off this. A scam and sham is what it is!

Jan 11, 2018 03:17 PM #15
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