Buying a Home in Katy
Buying in Katy follows standard Texas closing procedure, but two things distinguish it from a single-county suburb: confirming which of three counties (and which appraisal district) a specific address falls in, and confirming whether the property sits in a Municipal Utility District (MUD) with its own separate tax. Flood-zone due diligence is also a genuinely more serious, non-optional step here than in most Houston-area suburbs, given Katy's documented Hurricane Harvey flooding history.
Exploring the idea of moving?
We can connect you with a local real estate professional who knows the area -- no pressure, just a starting point.
Learn moreClosing costs and Texas-specific mechanics
Texas closing costs typically run in the range of 2%-6% of the purchase price across title insurance, lender fees, recording fees, and prorated taxes and HOA dues. Texas has no state real estate transfer tax (unlike some states), and title insurance premiums are set by the Texas Department of Insurance rather than freely priced by title companies -- a structural difference from Florida's doc-stamp-based system. Property tax proration and, if applicable, MUD fee proration are negotiated as part of the contract like anywhere else in Texas.
Confirm county, appraisal district, and MUD status before writing an offer
Because Katy spans Harris, Fort Bend, and Waller counties, the specific parcel's county determines its appraisal district and which combination of county, school (Katy ISD), city (if inside city limits), and possible MUD taxes apply -- HAR.com cites a combined effective range of roughly 2.5% to 3.6% of home value across Katy neighborhoods depending on these factors. Confirm the exact county and MUD status for a specific address early, since it materially affects the ongoing tax bill, not just the closing paperwork.
Flood-zone and drainage due diligence is a real, necessary step, not a formality
Katy and specifically Cinco Ranch experienced some of the most significant flooding in the Houston area during Hurricane Harvey in 2017, tied to the Addicks and Barker reservoirs upstream -- more than 32,000 acres in the Katy area flooded, generating more than 13,000 FEMA claims, and a federal court found the U.S. Army Corps of Engineers liable for flooding of upstream properties in a December 2020 ruling. Crucially, several Houston-area communities that flooded during Harvey -- including parts of Katy -- were mapped as the lower-risk Zone X at the time, meaning FEMA flood-zone designation alone is not a reliable proxy for actual flood risk here. Confirm a specific parcel's flood zone, its elevation relative to nearby reservoirs and drainage channels, and its Harvey-era flood history (not just its current zone) before writing an offer. See insurance-hazard-costs for the fuller picture.
The 2026 homestead exemption and 10% appraisal cap
Buyers of a primary residence should file for Texas's homestead exemption promptly after closing. As of the 2026 tax year, the mandatory school-district homestead exemption is $140,000 of appraised value (raised from $100,000 by a November 2025 constitutional amendment), with an additional $60,000 school-district exemption available to homeowners 65 or older or disabled (a combined $200,000 for those who qualify). Once homesteaded, a property's appraised value for tax purposes generally cannot rise more than 10% per year regardless of market value -- but this cap does not reduce a first-year buyer's bill, which is based on the purchase-driven appraised value.
Key takeaways
- Texas closing costs typically run 2%-6% of purchase price; Texas has no state transfer tax, and title insurance premiums are regulated by the Texas Department of Insurance rather than freely set.
- Confirm which of Harris, Fort Bend, or Waller County a specific address sits in, and whether it's in a MUD, before writing an offer -- HAR.com cites a combined effective tax range of roughly 2.5%-3.6% of home value across Katy depending on these factors.
- Flood-zone review is a real, necessary due-diligence step: more than 32,000 acres in the Katy area flooded during Hurricane Harvey (2017), generating 13,000+ FEMA claims, with some flooded properties (including parts of Katy) mapped as the lower-risk Zone X at the time -- current flood-zone status alone is not a reliable risk proxy here.
- The 2026 school-district homestead exemption is $140,000 (up from $100,000 as of a November 2025 constitutional amendment), plus an additional $60,000 for owners 65+ or disabled, with a 10% annual appraisal-value cap once homesteaded -- file promptly after closing, though it won't reduce the first year's bill.
Want to know what your budget actually buys here?
Tell us a bit about what you're looking for and we'll connect you with someone local who can walk you through real numbers.
Get local guidanceRead the full Katy overview for the complete picture -- housing, taxes, climate, and who this place genuinely fits.
Planning a move?
Tell us what you're looking for and we'll connect you with a local expert who can help you make it happen.
Talk to a local expert