Property tax, by community
Texas property tax varies a lot by community — and MUD districts in newer master-planned communities add 0.5%-1.0% on top of the school district rate. This estimator has the rates pre-loaded.
Approximate FY2024 rates. Actual tax depends on the appraisal district's assessed value (often lower than purchase price for the first year), plus any applicable exemptions beyond homestead. Confirm with your tax assessor.
Why this matters in Texas
Texas doesn't have a state income tax. That sounds great until you see the property tax bill. Effective rates in our market run between 1.8% (Shenandoah, which has no city tax) and 3.1% (newer MUD districts like Bridgeland), with most established Woodlands villages around 2.05%.
The MUD or PID district is where buyers get surprised. Bridgeland, Grand Central Park, and The Woodlands Hills each have municipal utility districts that pay back the developer's infrastructure investment over 20-30 years. While the district is active, you pay a MUD tax on top of the regular property tax. MUDs eventually expire — typically once the bonds are paid off — but until then, the additional 0.7%-1.0% is real money. On a $500K home, that's $3,500-$5,000 per year above what a similar home in The Woodlands proper would owe.
The homestead exemption is your friend. If you live in the home as your primary residence and file the exemption with the county appraisal district, you save thousands per year. It does NOT apply to investment properties or second homes. We help every closing client file this — it's free, and skipping it is one of the most common buyer mistakes.