Property Tax Proration
Calculator
Results
- Seller's tax share
- $1,906.85
- Buyer's tax share
- $2,893.15
Results
| Seller's tax share | 1,906.85 |
| Buyer's tax share | 2,893.15 |
formula-map diagram
- Seller's tax share
- $1,906.85
- Buyer's tax share
- $2,893.15
Diagram
Formula
Seller share = annual tax × (days owned ÷ days in year)= 1906.85
Note
This is a simplified model for informational purposes only; consult a licensed professional before making a financial decision.
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See all →Frequently asked questions
Why do property taxes need to be prorated at closing?+
Property taxes are typically billed annually or semi-annually in arrears or in advance, but ownership changes mid-cycle, so proration splits the tax bill fairly between buyer and seller based on how many days each owned the property during that tax period.
How does the calculation differ between taxes paid in arrears versus in advance?+
If taxes are paid in arrears (billed after the period they cover), the seller owes the buyer a credit for the portion of past ownership not yet billed. If taxes are paid in advance (billed before the period they cover), the buyer owes the seller a credit for the portion of future ownership already paid for by the seller.
What date basis does the proration use — the closing date itself, or the day after?+
Convention varies by state and local custom — some use the closing day as the seller's last day of ownership responsibility, others treat it as the buyer's first day. Confirm which convention your closing agent or title company is using, since it shifts the proration by exactly one day either way.
Why is the prorated amount based on the prior year's tax bill instead of the current year's?+
The current year's final tax bill often isn't issued yet at the time of closing, so prorations are commonly estimated using the most recent known bill or assessed value, with a caveat that the amount may need a post-closing adjustment once the actual current-year bill is issued.
Who ends up owing money if the estimated proration turns out to be wrong once the real tax bill arrives?+
Many purchase contracts include a proration adjustment clause obligating buyer and seller to true up the difference once the actual bill is known, though this depends entirely on the specific contract language. Without such a clause, there may be no automatic mechanism to correct an estimate that turns out to be off.