Property Tax Proration Calculator
Split property tax between buyer and seller at closing.
Default 365
Results update as you type.
How it works
When a home is sold partway through a tax period, the property tax is split between buyer and seller based on how long each owns the home, and this calculator computes that proration. You enter the annual property tax, the number of days the seller owned the home during the tax period, and the number of days in the tax year, and it returns the seller's share, the buyer's share, and the daily tax rate. The idea is fairness: each party should pay tax only for the portion of the year they actually own the property. The daily tax is the annual amount divided by the days in the year, and multiplying by the seller's days of ownership gives their portion, with the rest assigned to the buyer. Proration matters at closing because property taxes are often paid in arrears or in advance, so the settlement statement credits or debits each party to even things out. For example, if taxes are paid at year-end, the seller owes the buyer for the months the seller lived there, since the buyer will later pay the full bill. Exactly how proration is handled depends on local custom, whether taxes are paid in arrears or advance, and the closing date, and some areas use a 360-day year or specific conventions, so confirm the method with your closing agent. This calculator gives a clear day-based estimate. Enter the annual tax, seller's days, and days in year to prorate the tax.
Seller's share = (annual tax / days in year) × days seller owned
Property tax is prorated so each party pays for the days they own the home. The daily tax is the annual tax divided by the days in the year. Multiplying by the days the seller owned the property gives the seller's share, and the remainder is the buyer's share.
Source:Real estate closing
We review all our tools from time to time to ensure accuracy.
Worked example
How to use this calculator
- 1
Enter your values
Enter annual property tax and days seller owned this period.
- 2
Adjust the options
Adjust days in tax year if they apply — sensible defaults are already set.
- 3
Read your result
Seller's share updates instantly as you type — no button to press.
Frequently asked questions
What is property tax proration?
Property tax proration is the division of a property's annual tax between the buyer and seller when a home is sold partway through the tax period. Each party pays for the days they own the home. It ensures neither pays for time the other owned the property and is settled at closing on the settlement statement.
How is the proration calculated?
Divide the annual property tax by the number of days in the tax year to get the daily tax, then multiply by the days the seller owned the home for the seller's share. The buyer covers the rest. The calculator does this from your inputs, showing each party's portion and the daily rate.
Why does it matter whether taxes are paid in arrears or advance?
If taxes are paid in arrears, the seller owes the buyer for their period of ownership because the buyer will pay the full bill later. If paid in advance, the buyer may owe the seller for the prepaid portion covering the buyer's ownership. The direction of the credit at closing depends on this, though the day-based split is the same.
Do all areas use a 365-day year for proration?
No. While many use the actual 365-day year, some jurisdictions or closing customs use a 360-day year (twelve 30-day months) for simplicity, and conventions differ on how the closing day is counted. The calculator lets you set the days in the year, but confirm the exact method with your closing agent or local practice.
Who handles the proration at closing?
The closing or settlement agent, such as a title company or attorney, calculates and applies the property tax proration on the settlement statement, crediting or debiting the buyer and seller accordingly. This calculator helps you understand and verify the amounts, but the official proration is performed as part of the closing process based on local rules.