A MUD (Municipal Utility District) is a special taxing district that developers create to finance infrastructure like roads, water, and sewer systems in new communities. In exchange for lower home prices upfront, you pay an additional tax that typically ranges from 0.25% to 1.5% of your home's value annually.

The good news? MUD taxes often decrease over time as the infrastructure is paid off. Some MUDs are already paid down significantly, while brand-new developments may have higher rates. The key is knowing what you're getting into before you make an offer.

This calculator shows you the true cost of a MUD tax on your specific home purchase, broken down monthly so you can budget accurately. It's essential information for comparing new builds across different communities.