Is Septic or Sewer Cheaper in Texas? (2026 Cost Comparison)

Septic systems cost $15,000-$25,000 over 20 years in Texas, while municipal sewer runs $20,000-$50,000 including MUD fees and monthly rates of $40-$80.

If you're building a new home in a developing Texas suburb or buying property outside city sewer lines, this choice matters more than most people realize. The upfront numbers only tell part of the story. Monthly bills, repair risk, property value, and your specific lot conditions all factor in.

As Nathan Glavy, Extension Program Specialist at Texas A&M's Texas Water Resources Institute, notes in the OSSF education program, homeowners in growing Texas suburbs should evaluate both options carefully since soil conditions and MUD fee structures vary widely by county.

This guide breaks down the real 20-year cost of both options with Texas-specific data, covers the pros and cons that actually matter to homeowners here, and gives you a framework for deciding which makes sense for your property.

How Much Does Each System Cost Over 20 Years?

A conventional septic system in Texas costs roughly $15,000-$25,000 over 20 years total, while sewer service through a MUD runs $20,000-$50,000 depending on your metro area and district fees.

Here's the full breakdown:

Cost Category	Septic (Conventional)	Municipal Sewer (MUD)
Installation/Connection	$6,500-$7,500	$5,000-$15,000 (tap + impact fees)
Monthly/Annual Costs	$0/month (pump every 3-5 years at $250-$400)	$40-$80/month ($480-$960/year)
20-Year Ongoing Total	$5,000-$7,000	$9,600-$19,200
Repairs Over 20 Years	$3,000-$10,000	$1,000-$5,000 (assessments)
20-Year Grand Total	$14,500-$24,500	$15,600-$39,200

Septic wins on raw numbers for most rural and semi-rural properties. But those repair costs on the septic side have a wide range for a reason. If your drain field fails (common in Texas clay soils after 15-20 years), you're looking at $5,000-$20,000 for replacement. That single event can erase years of savings over sewer.

Aerobic septic systems change the math. They cost $10,000-$20,000 to install and require a TCEQ-mandated maintenance contract ($300-$500/year), pushing 20-year costs to $20,000-$35,000. At that point, sewer looks more competitive.

What Do Monthly Sewer Rates Look Like Across Texas?

Texas monthly sewer rates range from $40-$80 for a typical household, with Dallas and Austin on the higher end and Houston slightly lower.

Monthly sewer bills vary by city and utility district. Here's what households using around 5,000 gallons per month can expect:

Metro Area	Monthly Sewer Rate	20-Year Total (Sewer Only)
Houston	$40-$60	$9,600-$14,400
San Antonio	$45-$65	$10,800-$15,600
Austin	$50-$70	$12,000-$16,800
Fort Worth	$50-$70	$12,000-$16,800
Dallas	$55-$75	$13,200-$18,000

These are base rates. Heavy water users pay more since sewer charges often scale with water consumption. And rates go up over time. A 3% annual increase (common for Texas utilities) means your $50/month bill today becomes $90/month in year 20.

Septic owners pay $0 per month. Their costs come in lumps: $250-$400 every 3-5 years for pumping, plus occasional repairs. Some homeowners prefer that pattern over a monthly bill. Others prefer the predictability of a fixed monthly charge.

What Are Texas MUD Connection Fees?

Texas MUD (Municipal Utility District) fees for new construction typically run $5,000-$12,000 combined for water and sewer taps, plus impact fees that can add another $3,000-$5,000.

MUD fees are the hidden cost of sewer in Texas suburbs. When developers build new subdivisions outside city limits, they form MUDs to fund water and sewer infrastructure through bonds, taxes, and connection fees.

What you'll pay varies by district:

• Water tap fee: $1,200-$6,000 (based on meter size)
• Sewer tap fee: $1,200-$5,000
• Impact fees: $3,000-$5,000 in many Austin and Houston-area MUDs
• Meter set and inspection fees: $400-$500
• MUD tax rate: Added to your property tax bill (varies by district)

For a new home in a Houston-area MUD, expect $8,000-$12,000 in connection-related fees. Austin-area MUDs can run higher, sometimes exceeding $15,000 when impact fees are included.

If you already have septic and a MUD extends sewer to your area, connecting costs $5,000-$15,000 total. That includes tap fees, contractor work to run the new line, septic decommissioning, and permits. You're not required to connect in most cases, but some MUDs mandate it once service is available within a certain distance.

What Are the Real Pros and Cons?

The cost numbers don't capture everything. Here's what Texas homeowners actually care about when living with each system:

Septic System Advantages:

• No monthly utility bill for wastewater
• Complete independence from municipal systems
• Works during power outages (conventional gravity systems don't need electricity)
• Lower 20-year cost for properties with suitable soil
• No MUD taxes on your property tax bill

Septic System Disadvantages:

• You're responsible for all maintenance and repairs
• Drain field failure is expensive ($5,000-$20,000) and disruptive
• Texas clay soils can shorten system life, especially in Blackland Prairie areas
• Aerobic systems require a TCEQ maintenance contract and quarterly inspections
• Limits what you can build on your property (setback requirements from tank and drain field)
• Can complicate home sales if the system has issues

Municipal Sewer Advantages:

• Almost zero maintenance responsibility (you only maintain the lateral line to your house)
• No risk of drain field failure or backup into your yard
• Easier home sales (buyers and lenders prefer sewer)
• Handles heavy water use without overload concerns
• Property values tend to be slightly higher in sewer-connected areas

Municipal Sewer Disadvantages:

• Monthly bill that never stops (and increases over time)
• MUD connection fees add $5,000-$15,000 to new construction
• MUD taxes added to your property tax bill
• Dependent on municipal infrastructure (backups during major flooding events affect entire neighborhoods)
• No control over rate increases
• Sewer overflows during heavy rain can affect Gulf Coast areas

How Do Texas Conditions Affect the Decision?

Texas isn't one-size-fits-all. Your region changes which option makes more sense.

Hill Country (Austin, San Antonio, Dripping Springs, Boerne): Rocky limestone soil with thin topsoil often requires aerobic systems, which cost more and need maintenance contracts. If sewer is available, the cost gap narrows considerably. Many Hill Country developments are building MUD infrastructure specifically because the soil makes septic more expensive.

Blackland Prairie (Dallas, Fort Worth, Waco): Heavy clay soil with poor drainage. Conventional septic works but drain fields can struggle during wet seasons. Clay expansion and contraction stresses pipes and tanks. Sewer is often the better long-term bet here if available.

Gulf Coast (Houston, Galveston, Beaumont): High water tables and flooding risk. Septic systems in flood-prone areas face saturation problems during heavy rain events. Sandy soil drains well when it's dry, but rising water tables push wastewater to the surface. Sewer systems also struggle here during major storms, but recovery is managed by the utility rather than the homeowner.

Central Texas Suburbs (Round Rock, Georgetown, New Braunfels): The growth zone. These areas often have a mix of older septic properties and newer MUD-connected subdivisions side by side. If you're buying in a developing area, check whether a MUD is forming nearby. Your septic home today could be offered sewer service within 5-10 years.

How Should You Choose Between Septic and Sewer for New Construction?

If you're building a new home in a developing Texas area, here's a practical way to think through the choice:

Choose septic if:

• Your lot is 1+ acres with suitable soil (confirmed by percolation test)
• Sewer mains are more than 500 feet away
• You want to avoid monthly utility bills and MUD taxes
• You're comfortable with maintenance responsibility
• Your soil drains well (sandy or loamy, not heavy clay)

Choose sewer if:

• Your lot is under 1 acre or in a subdivision
• Sewer service is available within 500 feet
• Your soil has poor drainage (clay, rock, high water table)
• You plan to sell within 10-15 years (sewer adds resale value)
• You'd rather pay monthly than handle maintenance yourself

The cost crossover point: For lots with good soil and no complications, septic saves $5,000-$15,000 over 20 years compared to sewer. But if you need an aerobic system ($10,000-$20,000 install plus $300-$500/year maintenance), the savings shrink to near zero or disappear entirely.

When Should You Call a Professional?

If you're deciding between septic and sewer for new construction, start with a soil evaluation. A licensed Texas site evaluator can test your soil's percolation rate and tell you whether conventional septic is an option or if you'd need an aerobic system. That test alone ($600-$2,000) can save you from making the wrong choice.

For existing homeowners weighing a sewer connection, get quotes from both your MUD (for connection fees) and a plumber (for the tie-in work) before deciding.

Building or buying in Texas and need help deciding? Find licensed septic professionals in your area

Frequently Asked Questions

Is septic or sewer cheaper in Texas long-term?

Conventional septic is typically cheaper over 20 years ($15,000-$25,000 vs. $20,000-$50,000 for sewer), but the gap narrows if you need an aerobic system. Aerobic systems with their required TCEQ maintenance contracts can cost nearly as much as sewer over two decades. Your soil type and location determine which option actually saves money.

Do I have to connect to sewer if a MUD extends service to my area?

It depends on your MUD's rules. Some Texas MUDs require connection within a certain distance or timeframe once service is available. Others make it optional. Check your district's policies. Connecting an existing septic home to new sewer typically costs $5,000-$15,000.

Does having septic vs sewer affect my home's resale value?

Sewer-connected homes generally sell easier and may command slightly higher prices, but a well-maintained septic system doesn't significantly reduce value in rural or semi-rural Texas markets. Buyers in suburban subdivisions strongly prefer sewer. Buyers looking at larger rural lots expect septic. The impact depends more on your local market than the system itself.

How do I know if my lot can support a septic system?

You need a site evaluation with a soil percolation test, conducted by a licensed Texas site evaluator. This test determines how quickly your soil absorbs water. Good percolation means conventional septic is possible. Poor percolation (common in clay soils and limestone areas) may require an aerobic system or make septic impractical. The test costs $600-$2,000 and is required before TCEQ will issue a permit.

What happens to my septic system during heavy Texas rains?

Conventional septic drain fields can become saturated during extended heavy rain, slowing drainage and potentially causing temporary backups. Gulf Coast and low-lying areas face higher risk. Aerobic spray systems can't distribute treated water during saturated conditions. If your area floods regularly, this is a significant factor favoring sewer. For more details, see our guide on septic systems and heavy rain in Texas.

---

Last updated: February 2026 Reviewed by: Texas Septic Guide Editorial Team, content verified against TCEQ OSSF regulations, Texas MUD fee schedules, and municipal utility rate data Sources: TCEQ OSSF program, Texas MUD fee schedules (Acton, Lakeway, Lumberton, Kingsland districts), ProMatcher Texas septic cost data, Austin/Houston/San Antonio/Dallas utility rate schedules