Property Tax Proration Calculator
Split annual property tax fairly at closing. Enter the yearly tax and the number of days the seller owned the home to see the daily rate and each party's share of the bill.
How to prorate property tax
- Enter the annual property tax.
- Enter the number of days the seller owned the home during the tax year.
- Read the daily tax and the seller and buyer shares.
Examples
3,650 annual tax, seller owns 180 days
Annual tax 3,650, seller days 180, 365 day year
Daily tax 10, seller share 1,800, buyer share 1,850
Frequently asked questions
How is property tax prorated at closing?
The annual tax is divided by the days in the year to get a daily rate. The seller's share is the daily rate times the days they owned the home, and the buyer pays the rest.
Why do property taxes get prorated?
Property tax covers a full year, but ownership often changes mid year. Proration makes each party pay only for the days they owned the home, so neither is charged for the other's time.
Should I use a 365 or 360 day year?
Many areas prorate on a 365 day calendar, but some use a 360 day banker's year. This tool defaults to 365 and lets you change the days in the year to match local practice.
Who pays the larger share?
It depends on the closing date. Whoever owns the home for more days in the tax year pays the larger share. In the example, the buyer owns it for more of the year and pays slightly more.
Does this match my settlement statement?
It is a clean daily estimate. Actual closing statements may use a specific method, a different day count or credits between parties, so confirm the figures with your closing agent.
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