Celina, Texas MUD and PID Taxes: What New Construction Buyers Should Know

Celina, Texas is one of the fastest-growing cities in the country, and most of its newer master plans pay for their own roads, parks, and water and sewer lines through two tools that never show up in a basic online estimate: a Municipal Utility District (MUD) and a Public Improvement District (PID). Amy Jacobs, REALTOR® with Berkshire Hathaway HomeServices PenFed Realty Texas, has guided buyers through new-construction purchases across Celina, Prosper, Frisco, and Plano since 2012, and the question she hears most often from buyers comparing a home in Celina to one in an older, already-built-out suburb is simple: why is the total tax bill so much higher than the city's posted rate.

According to Community Impact, Celina City Council adopted a property tax rate of $0.571677 per $100 of valuation for fiscal year 2026-27, a slight decrease from the prior year's $0.576401, as part of a $529.1 million budget approved at a Sept. 8 meeting. The outlet reported that the average resident's monthly city tax bill is expected to fall from $289.95 to $277.48, and that the city expects about 13% more property tax revenue this year because of new property added to the tax roll, even with the lower rate. That figure is the City of Celina's general fund rate. It does not include Collin County, Celina ISD, Collin College, or any MUD or PID tied to a specific subdivision, each of which is calculated separately and added to the total bill.

For the full mechanics of how a Texas tax bill is built, see Amy's taxes, MUDs and PIDs explainer. The short version for Celina:

A Municipal Utility District is a special taxing district that builds the water, sewer, and drainage infrastructure for a new community, usually through bonds the district repays with its own annual property tax, charged on top of the city, county, and school rates. According to real estate brokerage LRG Realty, those bonds can run as long as 40 years and the MUD's own tax line adjusts each year with the district's budget and debt service.

A Public Improvement District works differently. According to Redfin, a PID funds amenities such as entry monuments, landscaping, trails, and decorative lighting through a special assessment on each property under Texas Local Government Code Chapter 372. Redfin notes that PID assessments are often billed as a flat amount or based on property valuation, and typically run 20 to 40 years. According to LRG Realty, a PID assessment also carries a first and prior lien on the property, ranking ahead of most other liens except the government's own ad valorem tax lien.

Not every Celina neighborhood has a MUD or PID, and not every one that does carries the same rate. Mustang Lakes, the master plan built around a 20-acre park with a private lake, sits inside Mustang Lakes Public Improvement District #1, and the lot's tax certificate shows whether any other special district also applies. Lilyana, a 400-acre master plan with resort-style pools and two amenity centers, carries a PID. Older, already-developed parts of Celina closer to the historic downtown square typically do not. The only way to know for certain is to check the specific lot, not the city or the subdivision's marketing materials.

LRG Realty recommends getting the MUD rate or PID assessment for the specific lot in writing from the builder, along with the district's outstanding bond debt and whether any bond elections are scheduled. Texas law requires a written MUD notice before you sign a binding contract (Texas Water Code 49.452) and a written notice of any PID assessment before the contract takes effect (Texas Property Code 5.014), and a separate copy of each is signed and recorded at closing. The MUD notice may be a separate page or a paragraph inside the contract, so confirm the exact paperwork with your title company. Ask whether a homestead exemption applies. School districts are required to offer one. According to LRG Realty, MUDs are not required to, though some boards adopt one voluntarily, and you still have to file for it yourself with the county appraisal district. Amy Jacobs guides her Celina buyers through this exact review before they sign a builder contract, pulling the district's own numbers rather than relying on a builder's sales-office estimate.

If you're comparing a new-construction home in Mustang Lakes, Lilyana, or anywhere else in Celina, Texas, Amy Jacobs, REALTOR® with Berkshire Hathaway HomeServices PenFed Realty Texas, can pull the specific district's rate before you write an offer. Contact Amy to schedule a free consultation about buying in Celina.

Amy Jacobs, ABR®, GRI, MRP, PSA, RENE, "Amy 'Rockstar' Jacobs," Relocation Specialist with Berkshire Hathaway HomeServices PenFed Realty Texas, serving Plano, Frisco, Prosper, and Celina. D Magazine Best in D (2023, 2024, 2025) and D Magazine Best Real Estate Agent (2026). 800+ families served, including an estimated 600+ relocations. Call or text 214-529-2641. Texas license 0638764.