Property Tax Proration Calculator
Estimate how annual property taxes may be divided between the buyer and seller based on the closing date and selected proration method.
Actual tax prorations are determined by the purchase contract, applicable law, taxing authorities, available tax information, and final settlement calculations.
Property & Tax Details
Enter the property’s annual tax amount from the most reliable available tax information.
Select which party should receive responsibility for the closing date. Your purchase contract or settlement instructions may control this treatment.
Fill in the tax and closing details, then select Calculate to see how taxes may be prorated between buyer and seller.
What is a property tax proration?
Property taxes often cover a period of time, typically a calendar year. When ownership of a property changes during that year, the annual tax bill may need to be allocated between the seller (for the portion of the year they owned it) and the buyer (for the remaining portion), based on the closing date.
How are property taxes prorated at closing?
The basic idea is: annual taxes ÷ the proration basis (actual days in the year, or a standardized 360-day year) × the number of days applicable to each party. The result is a daily tax rate applied across each party’s share of days in the tax year.
Who pays property taxes at closing?
The answer depends on whether the current year’s taxes are paid or unpaid, the purchase contract, the closing date, local practices, and the settlement instructions for the specific transaction - it is not the same in every deal.
Why can the final tax proration be different?
Final figures can differ from an early estimate because the tax bill hasn’t been issued yet, estimated taxes were used, an exemption applies or is removed, the property is reassessed, a supplemental or corrected tax bill is issued, contract terms address proration differently, or the closing date changes.
Frequently asked questions
Need a final proration? Talk to Title Ten HQ.
Final tax prorations must be confirmed for the specific transaction.