Taxes in Conroe
Texas has no state personal income tax -- a statewide, constitutional fact -- and Conroe's combined sales tax rate is 8.25% (6.25% state plus 2% city), the maximum combined rate Texas law allows. Property tax is where Montgomery County sources disagree meaningfully: effective rates were cited anywhere from about 1.36% to 2.4% of market value this session, with MUD-heavy areas running at the high end.
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Learn moreNo State Income Tax (Statewide, Not Conroe-Specific)
Texas has never levied a personal state income tax, and a 2019 constitutional amendment (76% voter approval) converted the prior referendum-required framework into an outright ban. This is the single biggest driver of Texas's overall tax competitiveness relative to income-tax states, and applies identically whether living in Conroe, Houston, or anywhere else in the state.
Montgomery County Property Tax: A Genuinely Wide Disagreement
Sources disagreed substantially on Montgomery County's effective property tax rate this session: one source cited a median rate of 1.36%, another 1.52%, another 1.65%, and a fourth projected an average around 1.95% for 2026. A separate synthesis described a combined effective range of 1.85%-2.4%, with median tax bills between $4,200 and $7,500 and MUD-heavy areas (parts of The Woodlands and similar Montgomery County developments) topping out near 2.4% -- Montgomery County has more than 150 Municipal Utility Districts, one reason its combined tax landscape is unusually layered. None of these figures are a substitute for a parcel-specific pull from the Montgomery Central Appraisal District; treat this range as directional, not precise.
Homestead Exemption and Texas's Appraisal Cap
The mandatory school-district homestead exemption rose from $100,000 to $140,000 for the 2026 tax year, following Proposition 13, approved by Texas voters in November 2025; homeowners 65 or older or disabled receive an additional $60,000 on top of that, for up to $200,000 total exempted from school-district taxes. Separately, once a homestead exemption is on file, Texas Tax Code §23.23 caps how fast a home's assessed (taxable) value can rise year to year at 10% maximum, regardless of actual market appreciation -- real protection, though looser than some other states' caps, meaning a Conroe homeowner in a fast-appreciating area can still see meaningful compounding assessed-value growth over time.
Sales Tax and MUD Taxes
Conroe's combined sales tax rate is 8.25% (6.25% state plus a 2% city rate), per Avalara and SalesTaxHandbook -- already at the statutory ceiling Texas law allows anywhere in the state; a couple of additional overlapping tax districts apply in some parts of the city geographically. Homeowners in a Municipal Utility District (common throughout the Conroe area -- see the moving topic page) pay a separate MUD tax on top of the standard county/city/school layers, funding that district's water, sewer, and drainage infrastructure debt; rates vary by district and generally decline as bonds are paid down.
Key takeaways
- No Texas state income tax -- statewide, constitutional, applies identically in Conroe as anywhere else in Texas.
- Montgomery County's effective property tax rate is genuinely disputed across sources this session (roughly 1.36% to 2.4% depending on source and MUD status) -- confirm a specific parcel's rate with the Montgomery Central Appraisal District.
- The school-district homestead exemption rose to $140,000 for 2026 (Proposition 13, approved November 2025); 65+/disabled homeowners get an additional $60,000. Texas's 10% annual appraisal cap applies once homesteaded.
- Conroe's combined sales tax is 8.25% (6.25% state + 2% city), at the Texas statutory maximum; homes in a MUD (common throughout the Conroe area) carry an additional, district-specific tax on top of standard property taxes.
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