Property taxes are prorated at closing so each party pays their fair share. The seller pays for days they owned the property and the buyer pays for the remainder of the tax year. This calculator handles both calendar and fiscal year proration.
Jan 1 – Dec 31. Most common in states where taxes are paid in arrears.
Closing: June 15, 2026
Day 166 of 365
When a property changes hands, the annual tax bill is divided between buyer and seller based on how many days each party owns the property during the tax year.
Calendar year proration runs January 1 – December 31 and is common in most states. Fiscal year proration uses the local tax jurisdiction's fiscal year (e.g., July 1 in California, October 1 in Texas).
The daily rate ($16/day) is multiplied by each party's ownership days to determine their share. This credit or debit appears on the closing disclosure (formerly HUD-1).
Daily Tax Rate
$16
per day · 365 days in year
166 days · 45.5% of year
199 days · 54.5% of year
First Half
Closing in the first half of the tax year creates a fairly even split leaning toward the buyer. Both parties share a meaningful portion of the annual tax bill.
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