Seeing a PID or MUD on a listing and wondering how it impacts your monthly payment?
You should — because it directly affects your total monthly cost.
Here’s the simple version:
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A PID is an added assessment (usually for roads, landscaping, and infrastructure) added to your property tax bill.
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A MUD is a special tax district that funds water, sewer, and utilities — also paid through your tax rate.
Both are common in North Texas, especially in newer developments.
Let’s walk through four real local examples — each for a slightly different reason.
🏘️ Example #1: Grand Heritage (PID Example)
Grand Heritage
Located in Lavon
Grand Heritage is a clear example of a PID community.
Here, homeowners pay:
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Regular property taxes
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HOA dues
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A PID assessment
In many sections, PID assessments range approximately:
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$1,200 – $2,000 per year
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Roughly $100 – $165 per month
That PID is separate from the tax rate and shows up as its own line item.
Why this matters:
If you calculate taxes based only on the base rate, your payment estimate could be short by over $100 per month.
🚰 Example #2: Trinity Falls (MUD Example)
Trinity Falls is a strong example of a community operating within a MUD structure.
Instead of a flat annual assessment, the MUD increases the overall tax rate.
In many North Texas MUD areas, the MUD portion may range:
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0.50% – 1.00% of assessed value
If you purchase a $400,000 home:
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A 0.75% MUD rate = $3,000 per year
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That equals $250 per month
Why this matters:
Unlike a PID, which is a flat fee, a MUD scales with your home’s value.
🏗️ Example #3: Bridgewater (MUD + PID Example)
Bridgewater is a great example of a newer master-planned community where you may see:
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A MUD tax rate
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A PID assessment
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HOA dues
Let’s use a realistic scenario:
Home price: $425,000
Base tax rate example (2.00%)
= $8,500 per year
Add MUD portion (0.75%)
= $3,187 per year
Subtotal:
$11,687 annually
Add PID assessment (example $1,500 annually)
= $13,187 total annual property taxes
Monthly taxes alone:
$1,098 per month
If you estimated at just 2%, you’d expect:
$708 per month
That’s a $390 monthly difference — before HOA.
Why this matters:
This is where buyers get surprised if they only look at list price.
🌿 Example #4: Light Farms (Phase-by-Phase Differences)
Light Farms is important for a different reason: not every phase is structured the same way.
Depending on the section, you may see:
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MUD components
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Different tax rates
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Varying obligations between phases
Two homes in the same neighborhood — even close to each other — can carry different total tax burdens.
Why this matters:
You can’t assume all homes in a community have identical costs.
The Big Picture
Here’s how these four examples break down:
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Grand Heritage → Clear PID example
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Trinity Falls → Clear MUD example
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Bridgewater → Layered MUD + PID example
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Light Farms → Phase-by-phase tax variation example
None of these are red flags.
They are development financing tools that:
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Fund roads
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Pay for utilities
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Support infrastructure
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Allow growth in expanding areas
But they absolutely change your monthly payment.
Final Takeaway
If you're buying in North Texas — especially in Lavon, McKinney, Princeton, or Celina — you should always ask:
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What is the total tax rate?
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Is there a PID assessment?
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How much annually?
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How long does it last?
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What are the HOA dues?
Before you write an offer, let’s run the full payment breakdown so you know your real monthly cost — not just the purchase price.
