Property Tax Proration Calculator

About this calculator

When a home sale closes partway through the tax year, the annual property tax bill has to be split fairly between buyer and seller based on how many days of the year each one actually owned the property — this is property tax proration. The seller is responsible for taxes covering the days they owned the home before closing, and the buyer takes on the remainder of the year, calculated as a share of the total annual tax based on the closing day out of 365.

This proration shows up as a credit on the closing statement — the party who is not yet due to pay their share directly to the taxing authority gives the other party a credit for their portion instead. Real estate agents, title companies, and closing attorneys calculate this on nearly every residential sale, since property taxes are almost never billed on exactly the closing date.