Tax Proration At Closing Calculator

Property tax prorated between buyer and seller based on closing date.

Annual tax

Closing day of year

Days in year

Seller proration

$8,975

Buyer proration

$9,025

Daily tax

$49.32

How the math works

Daily tax = annual / days in year. Seller = daily × closing day. Buyer = balance.

$18k / 365 = $49.3/day × 182 (July 1) = $8.97k seller + $9.03k buyer proration.

How to Use

Enter annual tax.
Enter closing date day of year.
Read seller and buyer proration.

Frequently Asked Questions

Proration method?

Seller pays for days owned, buyer pays for days after. Simple day-based proration. Complex when taxes paid in arrears vs advance. Some states/counties handle differently — check local custom.

Arrears vs advance?

Taxes paid in arrears (most common): seller owes proportional share for days owned. Taxes paid in advance: buyer owes seller for days paid in advance. Each creates different closing statement entries.

Disputes?

Reassessments happen after closing. Seller may owe additional tax for prior year ownership period. Tax adjustments common post-closing. Document clearly in purchase agreement. Escrow for estimated adjustment.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.