Property Tax Proration Calculator
At closing, property taxes are split between buyer and seller by days owned. Calculate exact buyer credit or debit based on closing date, annual tax bill, and whether your state pays in advance or arrears.
| Annual tax | — |
| Daily rate | — |
| Days seller owned | — |
| Days buyer will own | — |
| Seller share of full-year tax | — |
| Buyer credit at closing | — |
Property tax proration splits the annual tax bill between buyer and seller based on days of ownership during the tax year. The calculation depends on whether your state pays in arrears (most US states) or in advance (CA, AZ, FL among others), and whether the seller has already paid any portion of the current year's tax.
Arrears vs Advance — The Key Distinction
Arrears states: tax for calendar year 2026 is billed and paid in late 2026 or early 2027. At a mid-2026 closing, the seller has not yet paid 2026 tax. Seller credits the buyer at close for seller's portion; buyer then pays the full bill when it arrives.
Advance states (CA, AZ, FL): seller has already paid current-year tax. Buyer reimburses seller at close for the days buyer will own.
Common Pitfalls
Tax year is not always calendar year (some counties use July 1–June 30 fiscal). Special assessments and supplemental taxes (CA Mello-Roos, FL CDD fees) may not be prorated automatically. Bond and HOA fees are typically prorated separately. Confirm every line on the closing disclosure with your title company.
Who Calculates the Proration?
The title company or closing attorney runs the math, but they use the parties' contract terms — read paragraph X of your purchase agreement to see which method applies. A small error on a $10,000 annual tax bill is $27/day — verify before signing.
Last updated May 2026. Sources: American Land Title Association, CFPB Closing Process.