Why a Conroe new-home tax bill jumps in year two
A newly built Conroe home is often assessed for its first year on the value of the vacant lot, because that is what existed on the assessment date. The second-year bill reflects the finished house and can rise sharply.
The adopted rates
| School district | Total | M&O | I&S | On a $265,000 home |
|---|---|---|---|---|
| Conroe ISD | 0.950% | 0.670% | 0.280% | $2,516 |
| Splendora ISD | 1.255% | 0.755% | 0.500% | $3,325 |
Rates are per $100 of assessed value, adopted for tax year 2025 by the Texas Comptroller. The dollar column applies the rate to a $265,000 assessed value and excludes exemptions.
The assessment date is the whole story
Texas appraisal districts value property as it stood on January 1. A home still under construction on that date is assessed as what existed — often bare land, sometimes a partial structure. The tax bill that follows is small, and buyers reasonably assume it represents the cost of the house.
Then the second year arrives
The following January 1 the house is finished, and the assessed value reflects it. The bill rises to its real level in one step. Nothing improper has happened and no rate changed; the base changed.
What the homestead cap does and does not do
A homestead exemption limits how fast an assessed value can rise year over year, but the limitation applies only after the exemption is in place and the property has been qualified for a full year. It does not cushion the first full-value assessment on a new build.
Budgeting for it honestly
Estimate the second-year bill by applying the full combined rate for the parcel to the expected finished value, and escrow against that figure rather than the first-year bill. Lenders sometimes escrow against the lot-value bill, which produces a shortfall notice and a payment increase in year two.
Build with Alta Homes in Conroe
Alta Homes (Alta Development Group LLC) builds communities in Conroe: Crockett Meadows (from the $230s, Splendora ISD), Deer Trail Estates (from the $310s, Conroe ISD).
See Alta Homes homes in Conroe Call 1-888-904-7172
Sources
- Texas Comptroller Property Tax Assistance Division — Property Tax Rates and Levies — retrieved 2026-08-04. Adopted rates for tax year 2025. Rates for the following year are adopted between August 15 and September 30 and are not published by PTAD until the following January.
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