Which Katy Texas Zip Codes Have the Lowest Property Tax Rates in 2026

Katy's property tax rates are not set by the city alone. Every home in the Katy area sits inside a layered set of taxing jurisdictions: a county (Harris, Fort Bend, or Waller), a school district, sometimes a municipal utility district (MUD), and occasionally the City of Katy itself. The combined rate is what actually matters, and it is almost always higher than any single rate you see quoted in a listing or on a county website.

Because Katy straddles three counties and contains dozens of MUD districts, two homes priced identically at $450,000 and located less than a mile apart can carry annual tax bills that differ by $3,000 or more. That gap is large enough to affect how much house you can afford and how competitive a home feels once you factor in the true monthly payment.

How Taxing Entities Stack Up

A typical Katy-area property tax bill includes the county rate, a school district rate, and any special district rates such as a MUD or a levee improvement district. In some addresses inside the City of Katy limits, a small city rate is added on top. The school district levy is usually the largest single line item, often representing roughly half of the total combined rate.

The MUD Factor That Catches Buyers Off Guard

MUD districts are how Texas developers finance the water, sewer, and drainage infrastructure for new subdivisions. Buyers pay off that bond debt through an annual MUD tax rate that is added to everything else. In newer master-planned communities, MUD rates can run from $0.30 to over $1.00 per $100 of assessed value. Older, fully built-out subdivisions often have lower MUD rates because the bonds have been partially or fully retired. This is one of the biggest reasons why a newer home in a newer community can carry a higher effective tax rate than a comparable older home nearby.

For a deeper breakdown of how these layers work together, HAR's detailed guide to Katy TX property taxes is one of the clearest explanations available and is worth reading before you start comparing specific addresses.

2. The Katy Texas Zip Codes and Their 2026 Property Tax Rate Ranges

The five primary zip codes that cover Katy and its surrounding communities are 77494, 77450, 77449, 77493, and 77492. Each sits in a different county and contains a different mix of MUD districts, which is why the rate ranges below are wide rather than single numbers. The figures here reflect combined effective rates as of 2026 and are drawn from county appraisal district records and MUD disclosure documents.

77494: Fort Bend County Side of Katy

Zip code 77494 covers a large portion of the Fort Bend County side of Katy, including communities such as Cinco Ranch, Cross Creek Ranch, Firethorne, and Tamarron. Combined effective rates in 77494 generally range from approximately 2.4% to 3.1% of assessed value in 2026, depending heavily on which MUD district a specific subdivision falls within. Older sections of Cinco Ranch, where MUD bonds are further along in retirement, tend to sit at the lower end of that range. Newer developments in Cross Creek Ranch and Tamarron, where infrastructure bonds are more recent, tend to sit at the higher end.

Fort Bend County's base county rate is among the lower county rates in the Katy area. The Katy Independent School District levy applies to most of 77494, and KISD's 2026 rate sits at approximately $1.1194 per $100 of assessed value. When you add the county rate of roughly $0.3764 per $100 and a MUD rate that could be anywhere from $0.30 to $0.95 per $100, the combined total moves quickly into the 2.5% to 3.0% range for most addresses.

77450: Harris County Core of Katy

Zip code 77450 covers the older, more established core of Katy on the Harris County side, including neighborhoods near the historic downtown area and communities such as Grand Lakes, Kelliwood, and parts of the Memorial area closer to the Katy Freeway. This zip code often produces some of the lower combined tax rates in the Katy area, with many addresses falling between 2.2% and 2.7% in 2026.

The reason 77450 tends to be more favorable is age. Many subdivisions here were developed in the 1980s and 1990s, meaning MUD bonds have had decades to be paid down or retired entirely. Some properties in 77450 carry no MUD rate at all, which immediately drops the combined rate below what buyers will find in newer zip codes. Harris County's base rate of approximately $0.3992 per $100 is slightly higher than Fort Bend County's, but the absence of a MUD rate in many 77450 addresses more than compensates.

If you are considering a home in Grand Lakes specifically, the buying process and cost structure in that community are covered in detail in this guide to buying a home in Grand Lakes, which also addresses what to expect from the tax picture there.

77449: The Highest-Volume Zip in Katy

Zip code 77449 is the largest and most densely populated of the Katy zip codes, covering a wide swath of Harris County north and south of I-10 between the Katy city limits and the Grand Parkway. Communities here include Katy Lakes, Nottingham Country, Cimarron, and many others. Home prices in 77449 tend to run lower than in 77494 or 77450, often ranging from the low $200,000s to the mid $400,000s.

Combined tax rates in 77449 vary widely, from roughly 2.3% to 3.2% in 2026, depending on the subdivision. Older sections of Nottingham Country and Cimarron can carry rates at the lower end of that range because their MUD obligations are minimal. Newer sections developed closer to the Grand Parkway in the past decade carry higher MUD rates and land at the upper end. The sheer number of MUD districts inside 77449 makes this zip code one where address-by-address research is especially important.

77493 and 77492: The Newer Waller County Addresses

Zip codes 77493 and 77492 cover the city of Katy proper and some of the newest growth areas pushing northwest toward Waller County. These zip codes include the historic downtown Katy area, the Katy Mills corridor, and newer developments along FM 529 and the Katy-Hockley Road area.

Properties inside the City of Katy limits, which appear in 77493, carry an additional city tax rate of approximately $0.3788 per $100 of assessed value in 2026. That city rate pushes combined totals higher for in-city addresses. However, some older in-city properties have no MUD rate, which partially offsets the city levy. Overall, 77493 addresses range from about 2.5% to 3.0% combined. Zip code 77492 is a smaller, less populated zip covering a narrow slice of the area; rates there mirror the lower end of 77493 for most addresses.

3. What Drives the Difference: MUD Districts, City Taxes, and School Levies

Understanding the three main levers that control your combined rate gives you a real advantage when comparing homes across different parts of Katy. Each lever works independently, so a home can score well on one and poorly on another.

Municipal Utility Districts Explained

A MUD is a political subdivision created by the Texas Commission on Environmental Quality to allow developers to issue bonds and build water and wastewater infrastructure. Buyers in Texas are required by law to receive a MUD disclosure notice before closing, which states the current MUD tax rate and the outstanding bond balance. Reading that disclosure carefully tells you both what you will pay now and whether the rate is likely to decrease as bonds are retired over time.

In 2026, MUD rates across the Katy area range from $0.00 (for properties not inside any MUD) to as high as $1.10 per $100 of assessed value in some of the newest Waller County development zones. A $400,000 home in a MUD with a $0.90 rate pays $3,600 per year in MUD taxes alone, before the county, school, and city rates are even added.

City of Katy vs. Unincorporated Areas

Most of what people call "Katy" is not actually inside the City of Katy limits. The city itself covers a relatively small footprint around the historic downtown, Old Town Katy, and the area near Katy Mills Mall. The vast majority of the master-planned communities, including Cinco Ranch, Cross Creek Ranch, and most of 77449, are in unincorporated Harris or Fort Bend County and do not pay the city rate. Buyers who specifically want to avoid the city levy should verify the address on the City of Katy's official annexation map before making an offer.

School District Levies Across the Zip Codes

The vast majority of the Katy area is served by Katy ISD, whose 2026 combined M&O and I&S rate is approximately $1.1194 per $100 of assessed value. A small number of addresses on the far western and northwestern edges of the Katy area fall into Royal ISD (Waller County), which has its own rate structure. Because the school district levy is the largest single line item on most Katy tax bills, confirming which district an address feeds into is a critical first step in any tax comparison.

For more context on how the broader Katy market is performing alongside these cost considerations, the Katy Texas real estate market guide covers current pricing trends and neighborhood comparisons in depth.

4. How to Calculate Your Actual Tax Bill on a Specific Home

Rate ranges by zip code are useful for narrowing your search, but the only number that truly matters is the combined rate on the specific address you are considering. Here is a straightforward process for getting to that number before you make an offer.

Step One: Find the Taxing Entities for That Address

Each county appraisal district maintains a public database where you can search any address and see every taxing entity it belongs to, along with each entity's current rate. For Fort Bend County addresses, use the Fort Bend Central Appraisal District (FBCAD) website. For Harris County addresses, use the Harris County Appraisal District (HCAD) website. For Waller County, use the Waller County Appraisal District site. Each database is free and requires only the street address or account number.

Step Two: Apply the Combined Rate to the Assessed Value

Once you have the list of taxing entities and their individual rates, add them together to get the combined rate. Then multiply the combined rate by the assessed value of the property (not the purchase price, though in Texas the two are often similar in the first year after a sale). For example, a home assessed at $425,000 with a combined rate of 2.75% would carry an annual tax bill of approximately $11,688 before any exemptions.

Note that Texas appraisal districts are required to appraise properties at 100% of market value, and assessed values can increase year over year. The 10% homestead cap limits how much your assessed value can rise annually once you have a homestead exemption in place, but it does not apply in the first year you own the home. Factor potential assessment increases into your long-term budget, not just the first-year number.

Step Three: Check for Exemptions That Reduce Your Bill

Texas offers a general homestead exemption that reduces the taxable value of your primary residence. As of 2026, the state mandates a minimum $100,000 homestead exemption on school district taxes following the 2023 legislation that raised it from $40,000. Many taxing entities also offer their own additional exemptions on top of the state minimum. For a $425,000 home, the $100,000 school district exemption alone reduces the taxable base for that portion of the bill from $425,000 to $325,000, which translates to meaningful annual savings.

Homeowners who are 65 or older or who have a qualifying disability can receive additional exemptions and a tax freeze on the school district portion of their bill. Veterans with a service-connected disability rating of 100% may qualify for a full exemption from all property taxes in Texas. These exemptions must be applied for through the county appraisal district and are not applied automatically.

For a comprehensive look at current assessed values and how they compare across the Katy area, the data at Ownwell's Katy real estate tax assessment tracker shows historical and current average assessments by area, which helps you benchmark whether a specific listing's assessed value is in line with the surrounding market.

5. Practical Tips for Buyers Comparing Tax Rates Across Katy Zip Codes

Knowing which Katy Texas zip codes have the lowest property tax rates in 2026 is only useful if you can translate that knowledge into smarter home searches and offer decisions. These practical steps help you do exactly that.

Always request the tax certificate and MUD disclosure before submitting an offer. Texas sellers are required to provide a MUD disclosure if the property is inside a MUD, but the tax certificate showing the current year's actual bill is something your agent can request from the title company or pull from the county records. Looking at the actual bill rather than estimating from rates eliminates guesswork.

Compare homes on a total monthly cost basis, not just the purchase price or the mortgage payment. A home priced at $420,000 in a lower-rate zip code may carry a combined tax bill of $9,800 per year, while a home priced at $400,000 in a higher-rate zip code may carry a bill of $12,400 per year. That $2,600 annual difference equals roughly $217 per month, which is significant when you are budgeting a mortgage payment.

Ask specifically about MUD bond retirement timelines. If a MUD district is close to retiring its bonds, the rate may drop meaningfully within a few years of your purchase. Conversely, if a MUD recently issued new bonds to fund additional infrastructure in an expanding community, the rate could stay elevated for another decade or more. The MUD board's annual financial report, which is a public document, shows the outstanding bond balance and the projected payoff schedule.

File your homestead exemption as soon as you close. In Texas, you can now file a homestead exemption in the same year you purchase a home, as long as January 1 of that year was your qualifying date. The exemption applies to the portion of the year you owned the home and reduces your taxable value immediately. Missing the filing deadline means waiting until the following tax year to see the savings.

Consider protesting your appraisal in the first year. If your home's assessed value comes in above your purchase price, you have the right to protest it with the county appraisal district. Many Katy homeowners successfully reduce their assessed values each year through the protest process, which directly lowers the taxable base for every entity on their bill. The protest deadline is typically May 15 or 30 days after you receive your appraisal notice, whichever is later.

If you are also thinking through the broader question of whether now is the right time to buy in Katy, the analysis in this article on whether to buy a home in Katy now or wait pairs well with the tax rate research covered here.