Property Tax Proration Calculator
Split the property tax year between seller and buyer at the closing date.
Result
Credited to the buyer at closing: $2,738.08Estimate
Three conventions move this number: the day basis, whether tax is billed in arrears or in advance, and which side owns the closing day. Your contract and settlement agent decide them, not this page.
- Seller's share of the year
- $2,738.08
- Buyer's share of the year
- $1,061.92
- Days charged to the seller
- 263
- Days charged to the buyer
- 102
https://calcgallery.com/home-buying/property-tax-proration-calculator/
Results are arithmetic from the figures you enter, not legal, tax, lending or settlement advice. Fees vary by state, lender and negotiation, and the site quotes none of them. Check your Loan Estimate, Closing Disclosure or settlement statement for the real numbers. Read the full disclaimer
How to use the Property Tax Proration Calculator
- Enter the annual property tax and when the tax year starts.
- Enter the closing date.
- Set the three conventions your contract uses: arrears or advance, the day basis, and who owns the closing day.
Splitting a year at a date
daily tax = annual tax ÷ days in the yearseller share = daily tax × days the seller heldbuyer share = the restThe arithmetic is simple. What makes proration a recurring source of confusion is that three separate conventions sit underneath it, and different parties assume different ones.
The three conventions
Arrears or advance. In arrears the bill is still owing, so the seller credits the buyer. In advance the seller has already paid, so the buyer reimburses them. The money moves in opposite directions.
365 or 360 days. A banker’s year of 360 days makes each day slightly more expensive and is still used in places. On a September closing the two bases differ by a few dollars.
Who owns the closing day. It is a single day, and contracts differ on whether the seller or the buyer is charged for it.
None of these is more correct than the other, and this page picks none of them for you. It reports which combination produced the figure so you can check it against your contract.
What this does not tell you
It does not know your jurisdiction’s tax rate, its billing cycle, or whether an assessment is about to change. It splits the annual figure you enter across the year you describe. Your settlement agent’s statement is the number that governs, and this page is for understanding it rather than replacing it.
With your numbers
- Daily tax = $3,800.00 ÷ 365 days
- Seller holds 263 days, buyer holds 102
- Seller's share = $2,738.08, buyer's share = $1,061.92
- Billed in arrears, so the seller credits the buyer $2,738.08
Quick reference
Three conventions move this number: the day basis, whether tax is billed in arrears or in advance, and which side owns the closing day. Your contract and settlement agent decide them, not this page.
| Example | Credited to the buyer at closing |
|---|---|
| September closing, arrears | $2,738.08 |
| Same closing, paid in advance | -$1,061.92 |
| Buyer owns the closing day | $2,727.67 |
| 360-day banker basis | $2,776.11 |
| July fiscal year | €1,587.95 |
| Closing early in the year | €292.05 |
Common questions about the Property Tax Proration Calculator
- Why are there three settings rather than one answer?
- Because proration is a convention, not a fact. Whether tax is billed in arrears or in advance, whether the year counts as 365 or 360 days, and which side owns the closing day are all things your contract and settlement agent decide. Each one changes the money.
- What does in arrears mean here?
- That the bill for the period has not been paid yet. The seller occupied part of the year, so they credit the buyer for their share and the buyer pays the whole bill when it arrives.
- And in advance?
- The seller has already paid the year. The buyer reimburses them for the part of the year the buyer will own, so the money moves the other way. The page shows that as a negative settlement.
- Does one day really matter?
- On a $3,800 annual bill one day is about $10. That is small, but it is the sort of difference that makes your figure disagree with the settlement statement, which is worth understanding before the day.
- My tax year does not start in January.
- Fiscal tax years are common. Set the start date to whatever your jurisdiction uses and the split is calculated from there.