MUD and PID taxes
MUD and PID taxes, explained.
Many new North Texas communities carry a MUD tax or a PID assessment on top of city, county and school rates. Here is how to spot them before you buy.
Two extra lines on the bill
A municipal utility district (MUD) is a political subdivision that issues bonds to build water, sewer and drainage for a new development, then repays them with a property tax on homes inside the district. The rate is set every year and appears as its own line on your tax bill.
A public improvement district (PID) is created by a city or county to pay for improvements in a defined area. Owners pay an assessment, often fixed for a set number of years, on top of the regular tax rates.
The difference can be large. McKinney MUD No. 1, which covers Trinity Falls, set a 2025 rate of 0.98475 per $100 by itself. Celina lists 31 PIDs. On a $500,000 home, a one percent district adds about $5,000 a year.
How to check any address
Ask the seller or builder for every taxing unit on the property, including any MUD or PID, not just the city rate.
Texas law requires a seller to give a notice when a property sits in a MUD or other utility district. Read it before the option period ends.
Your county appraisal district lists the taxing units for each account. Search the address and add every rate.
Add taxes, insurance and HOA to the mortgage. That is the number to compare between communities.
- Texas Comptroller: property tax rates and levies
- Texas Comptroller: property tax exemptions
- FOX 4: Texans pass Proposition 13 raising the school homestead exemption (Nov 2025)
- Republic Title: 2025 DFW area tax rates
- City of McKinney: Tax Information (McKinney MUD No. 1)
- City of Celina: Public Improvement Districts
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