Newcomers read a Texas tax bill the way you read a restaurant receipt in a foreign country. Numbers everywhere, no idea which ones matter. So here is the receipt, translated.
Who is actually taxing me?
Not one government. Several, stacked. In Montgomery County the typical stack includes your school district, the county, either a city or a municipal utility district depending on where you live, and possibly a community college district and an emergency services district. Each sets its own rate. The Montgomery Central Appraisal District, MCAD, sets one appraised value that all of them use.
The stack usually totals somewhere between 1.6 and 2.8 percent of assessed value across the county, with newer MUD-served developments at the higher end while their infrastructure bonds pay down, and older established areas at the lower end.
What does the homestead exemption actually do?
Three things, and it costs nothing.
It removes $140,000 of your home's value from school district taxation, the largest line on almost every bill. Texas voters raised it to that level in November 2025.
It caps how fast your taxable value can rise at 10 percent per year, regardless of the market. In a hot year that cap is worth more than the exemption itself.
It renews automatically. File once with MCAD after the home becomes your primary residence, by April 30, and it follows you until you move.
If you are 65 or older or disabled, an additional $60,000 school exemption applies, for $200,000 total, and your school taxes freeze at a ceiling the year you qualify.
What is a MUD line on my bill?
A municipal utility district, the entity that financed the water, sewer, and drainage in developments outside city limits. New districts carry higher rates while bonds are fresh, and rates generally decline as debt retires. It is disclosed before you buy and belongs in the monthly math, not in the panic column.
Should I protest my appraisal?
In rising years, usually yes. MCAD sets your appraised value each spring, and you have the right to protest it, typically by May 15 or thirty days after your notice. Evidence beats indignation: closed sales of comparable homes, condition photos, repair bids. Many owners protest themselves successfully, and contingency-fee firms exist for those who would rather not. Either way, the exemption and the protest are separate levers. Pull both.