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Texas MUD Tax Guide for 55+ Buyers

What Municipal Utility Districts are, which Austin-area 55+ communities have them, how much they cost, and how to verify before you close

What Is a MUD and Why Does It Exist?

A Municipal Utility District (MUD) is a special-purpose local government created to finance and operate infrastructure — water systems, sewer systems, drainage, and roads — in areas that are outside city limits and do not have access to city utilities. Texas developers frequently use MUDs to fund the infrastructure of master-planned communities, with the costs recovered through annual property taxes assessed on all homes within the district.

MUDs are common in the suburban growth corridors around Austin, San Antonio, and Houston. Many 55+ communities in the Austin-San Antonio corridor — particularly those in western Travis County, southern Williamson County, and Hays County — sit within MUDs. The annual MUD tax is separate from regular county, city, and school taxes and is in addition to regular property taxes.

How Much Do MUD Taxes Cost?

MUD tax rates vary by district and year. Typical rates in the Austin-area suburban corridors run approximately $0.15–$0.35 per $100 of assessed value. On a $500,000 home, this adds:

MUD RateAnnual Tax on $500K HomeMonthly Equivalent
$0.15/$100 (lower MUD)$750/yr$63/mo
$0.25/$100 (moderate MUD)$1,250/yr$104/mo
$0.35/$100 (higher MUD)$1,750/yr$146/mo
$0.60/$100 (Rough Hollow area)$3,000/yr$250/mo

The Rough Hollow / Lakeway / Trilogy area MUD rates are among the highest in the Austin metro, running approximately $0.55–$0.65/$100 on some parcels. On a $900,000 Rough Hollow home, this adds approximately $4,950–$5,850/year in MUD taxes — over $400/month in additional recurring cost that does not appear in HOA fee comparisons.

Which Austin-Area 55+ Communities Have MUD Taxes?

CommunityMUD Tax StatusEstimated Rate
Sun City Texas (Georgetown)Generally no MUDN/A
Kissing Tree (San Marcos)Some parcels — verify~$0.20–$0.30/$100 on affected parcels
Trilogy at Rough HollowYes — Rough Hollow MUD~$0.55–$0.65/$100 (adds $2,800–$3,500/yr on $500K)
Amante at Rough HollowYes — same Rough Hollow MUD~$0.55–$0.65/$100
Del Webb SweetwaterVerify — western Travis Co. has MUDs~$0.20–$0.40/$100 on affected parcels
Villas at Kissing TreePossible — Hays County verify~$0.20–$0.30/$100 if applicable

Sun City Texas in Georgetown is the largest 55+ community in the market and generally does not sit within a MUD — one of its financial advantages that is rarely highlighted in comparison with the newer communities.

How to Verify MUD Status Before Closing

  1. Ask the seller and listing agent directly: “Is this property within a Municipal Utility District?”
  2. Request the property tax bill or tax certificate for the last 12 months — MUD taxes appear as a separate line item
  3. Look up the property on the Texas Comptroller's Local Government Entity Search or the county appraisal district website — MUD taxing entities are listed on the property's tax record
  4. If MUD exists, ask for the current year's MUD tax rate and amount
  5. Budget for MUD taxes as a recurring annual cost that does not benefit from homestead exemptions in the same proportion as county taxes
MUD taxes are a legally required disclosure in Texas. If a seller or agent does not disclose an existing MUD when asked directly, that is a material omission. Get confirmation in writing or from the tax records directly — do not rely solely on verbal assurances.

Questions About MUD Taxes on a Specific Property?

We can help you identify and verify MUD status for any 55+ community in the Austin-San Antonio corridor.

Talk to a Specialist