Property Tax Proration Calculator
Split the annual property tax bill fairly between buyer and seller at closing based on the days each party owns the home.
How it works
Daily tax = annual tax ÷ basis days · Seller share = daily × days owned · Buyer share = annual tax − seller share
Property taxes cover a whole year, but a sale hands the home over mid-period, so the bill is prorated by the days each party owns it. The annual tax is divided by 365 (or 360 in some jurisdictions) to get a daily rate, then multiplied by the seller’s days of ownership. How it appears at closing — a credit to the buyer or a charge to the seller — depends on whether taxes are billed in advance or in arrears in that state.
Worked example
On a $6,000 annual tax with a 365-day basis, the daily rate is $16.44. If the seller owned the home for 180 days of the tax period, their share is 180 × 16.44 ≈ $2,959, leaving about $3,041 for the buyer.
Frequently asked questions
Does the seller pay their share to the buyer or the county?
It depends on local practice. Where taxes are paid in arrears, the seller typically credits the buyer their share at closing because the buyer will pay the full bill later. Where taxes are prepaid, the buyer reimburses the seller. The math is the same; only the direction changes.
Why do some areas use a 360-day year?
A 360-day (banker’s) basis of twelve 30-day months simplifies hand calculations and is written into some local customs and contracts. It produces a slightly higher daily rate than the 365-day actual method.
What date counts as the split point?
Usually the closing date, though contracts vary on whether the closing day belongs to the buyer or the seller. Check the purchase agreement for the exact proration date and convention.
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Educational estimate, not financial, tax or lending advice. Confirm figures with your lender, agent or a qualified professional.