Tax Proration

Property Tax Proration Calculator

Who owes what at closing: state-convention presets, arrears or advance, calendar or fiscal year, and a signed settlement line (Debit Seller / Credit Buyer) with every day counted in the open.

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Convention

The preset fills these; override any that differ from your contract or local custom.

Annual tax by authority

Enter each levy's yearly amount; we add them up. Leave a field blank to skip it.

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Presets set the common statewide convention; local custom and your contract control. The daily method prorates the full annual levy across the tax period.

Settlement credit
Settlement statement line (ALTA / CD)

The prorated tax credit exactly as it lands on the closing disclosure.

Sellerdebit at closing$0
Buyercredit at closing$0

Ownership across the tax period
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Seller – Buyer – Closing –
Annual tax (all authorities)–
Billing–
Proration basis–
Daily rate (annual ÷ basis)–
Seller days–
Buyer days–
Seller share–
Buyer share–
Settlement credit$0
What if closing slips?

Same tax bill, recomputed at nearby closing dates. Your current date is highlighted.

Closing dateSettlement
Next step

Estimate the rest of the closing table in the closing costs estimator, or the loan itself in the mortgage calculator. Browse all the calculators.

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Common questions

How does property tax proration work at closing?

The tax for the period is split by days of ownership. A daily rate, the annual tax divided by the basis days (365, 366, 360, or the actual days in the period), is multiplied by the seller's days (period start through closing) and the buyer's days (closing through period end). This page counts both explicitly so each side can check the settlement statement.

What is the difference between taxes paid in arrears and in advance?

In arrears (most states) the seller hasn't paid the current bill yet, so the seller credits the buyer for the seller's days of ownership and the buyer later pays the full bill: Debit Seller, Credit Buyer. Paid in advance means the seller already paid the whole period, so the buyer reimburses the seller for the buyer's days: Debit Buyer, Credit Seller. The day math is the same; only the direction of the credit changes.

Do the state-convention presets set everything for me?

The presets set the common statewide convention (arrears vs advance, calendar vs fiscal July–June tax year), which is the number-one source of proration errors. They are a starting point, not legal advice: local custom and your purchase contract control who owns the closing day and the exact convention, so every setting stays editable and the settlement agent has the final word.

What proration basis should I use: 365, 366, or 360 days?

The daily rate is the annual tax divided by the basis. Actual-days uses 365, or 366 in a leap year. A fixed 365 or 366 basis pins the denominator regardless of the year. The 360-day banker's (30/360) basis treats every month as 30 days and appears in some commercial and lender calculations. Use whichever your contract or settlement agent specifies.

Who pays for the closing day itself?

It varies by contract and local custom; commonly the buyer owns the closing day, so the seller pays through the day before (this calculator's default). Flip the closing-day toggle if your purchase agreement assigns the closing day to the seller. It moves the split by exactly one day.

What if the tax year isn't the calendar year?

Enter the tax period's exact FROM and TO dates. Many jurisdictions run fiscal tax years (July 1 – June 30, for example); the fiscal presets fill those dates for you. The daily method then prorates across whatever period you set.

Can I enter separate city, county, school, and special-district taxes?

Yes. Enter each taxing authority's annual levy in its own field and the calculator sums them into the year's total before prorating. Leave any field blank to skip it. The billing frequency (annual, semi-annual, or quarterly) shows the per-installment amount; proration is always computed on the full annual levy for the period.