New construction
MUD, PID & MMD Taxes in Denton County, Explained
Almost every new master-planned community in Denton County comes with an extra line on the tax bill. It pays for the roads, water and drainage that the developer built instead of the city. Two homes at the same price can sit hundreds of dollars a month apart because of it — and it never shows up in the list price.
The short version
- MUD — Municipal Utility District. A separate taxing district that sells bonds to build water, sewer and drainage (and sometimes roads and parks), then pays them back with its own property tax rate on top of your city, county and school taxes. The rate is a percentage of your home's value, so it goes up and down with your appraisal.
- MMD — Municipal Management District. Does the same job as a MUD — bonds for infrastructure, repaid by a tax rate on your home — under a different section of Texas law. Landmark and Pecan Square both use one. For a buyer, treat it exactly like a MUD.
- PID — Public Improvement District. Usually works differently: instead of a tax rate, each lot carries a fixed annual assessment for a set number of years. It can show up as its own line on the tax bill, and some PIDs let you pay off the balance early.
None of these are scams or hidden fees. They're how most new communities in North Texas get built. They're also disclosed — Texas requires a written MUD notice and a PID notice before you sign. The problem is that most buyers sign those notices without ever turning them into a monthly number.
What it actually costs, community by community
Here's the district line by itself, on a $500,000 home, using the rates on each community's page:
| Community | District | Rate | Per year | Per month |
|---|---|---|---|---|
| Pecan Square (Northlake) | Northlake MMD No. 1 | 0.705% | $3,525 | $294 |
| Landmark (Denton) | MMD | 0.770% | $3,850 | $321 |
| Sandbrock Ranch (Aubrey) | Denton County MUD No. 6 | 0.935% | $4,675 | $390 |
| Wildflower Ranch (Justin) | Fort Worth MUD | 1.000% | $5,000 | $417 |
| Furst Ranch (Flower Mound) | Furst Ranch MUD No. 1 | up to 1.450% | up to $7,250 | up to $604 |
And here's the whole tax bill — city, county, school district and the district line together — on that same $500,000 home:
| Community | Total rate | Per month |
|---|---|---|
| Wildflower Ranch (2025 estimate) | 2.272175% | $947 |
| Sandbrock Ranch | 2.273738% | $947 |
| Pecan Square | 2.430038% | $1,013 |
| Treeline (Justin, 2025 rate) | 2.47% | $1,029 |
| Landmark | 2.657223% | $1,107 |
| Furst Ranch (at the MUD maximum) | up to 3.179015% | up to $1,325 |
| Established Flower Mound neighborhood, no district | 1.729015% | $720 |
That last row is the comparison that matters. The same $500,000 can cost anywhere from about $230 to $600 more a month to carry in a new community than in an established one nearby — before you've picked a floor plan. All figures are before homestead and other exemptions.
Three things that change the math
The lowest total isn't always the lowest district. Of the three communities with a set rate, Sandbrock Ranch has the biggest district share — 41% of the bill — and the lowest total, because there's no city tax in its stack. Compare totals, not district lines.
"Up to" means not set yet. Furst Ranch's MUD was authorized to levy up to $1.45 per $100, but as of early 2026 no residential rate had been set. If a builder can't give you the actual rate in writing for the year you'd close, plan around the cap.
Districts don't last forever — but don't count on them ending. District rates are reset every year, and they tend to come down as more homes get built and the bonds get paid. When the bonds are paid off, the district's debt rate goes away. That usually takes decades, so underwrite the house as if the rate you see today is the rate you'll pay.
What to ask before you sign
- "What's the total tax rate on this specific section?" Not the community — the section. Different phases can sit in different districts.
- "Is there a MUD, MMD, PID, or more than one?" Some communities layer them.
- "If it's a PID, what's the annual amount, how many years are left, and can I pay it off?"
- "Can I get that in writing?" The MUD and PID notices you sign are the start — ask for the current rate and the dollar figure for your price.
This is a big part of what I do on new construction — here's the rest of it. Rates on this page come from each community's published breakdown and the entities' FY 2026-27 budgets where available; every entity resets its rate yearly, so treat these as current, not permanent.
Want the all-in number on a specific house or section? Text me at 254-913-7381.