Property Tax Proration Calculator

US real estate closing calculator

Property Tax Proration Calculator

Estimate the seller’s and buyer’s share of a property tax bill, including who credits whom at closing. Select the tax period, closing-day allocation, and who handles the full tax bill.

1. Tax bill and closing date

Enter the estimated amount for the exact tax period shown below. A calendar year or July–June fiscal year both work.

Property tax for the period ($) Total property tax for the selected period, not a monthly amount.

Estimated change to bill (%) Optional adjustment if the final bill is unknown. Default: 0%.

Closing date Closing date must fall inside the tax period.

Tax period begins First day covered by the tax amount.

Tax period ends (inclusive) Last day covered. Leap years are handled automatically.

Proration day-count method Use the convention specified in your purchase contract.

2. Closing settlement assumptions

Tax payment arrangements and who owns the closing day can change the adjustment shown on a settlement statement.

Who is charged for closing day? Check the signed contract. Both conventions are used.

Who pays or has paid the entire tax bill? This determines the direction of the closing adjustment.

Unpaid taxes: If the buyer will pay the full bill later, the seller usually credits the buyer for the seller’s share. Seller prepaid taxes: If the seller paid the whole period, the buyer usually reimburses the seller for the buyer’s share. The contract controls the actual settlement.

Your estimated property tax split

Closing adjustment — Settlement credit / reimbursement

Seller’s tax share —

Buyer’s tax share —

Estimated total tax bill — Adjusted tax period amount

How the tax bill is divided

Seller Buyer

Seller’s actual calendar days—

Buyer’s actual calendar days—

Selected method’s seller units—

Selected method’s buyer units—

Tax amount per allocation unit—

Dates and settlement details

Tax period—

Closing date—

Seller’s assigned dates—

Buyer’s assigned dates—

Party handling full bill—

Compare proration methods

A 30E/360 method treats each month as 30 days and uses a 360-unit year. The standard actual-days method uses the real number of days in the selected period. Use the method stated in the contract.

Estimated buyer and seller split by day-count convention
Method	Seller units	Buyer units	Seller share	Buyer share

How property tax proration works

Proration assigns the tax bill for one billing period between the seller and buyer, based on their assigned ownership days. For actual-day proration: daily tax = tax amount ÷ days in the tax period; seller’s share equals daily tax multiplied by the seller’s days. The buyer’s share is the remainder.

If the buyer handles the full tax bill, the seller’s share generally appears as a seller-to-buyer credit for unpaid taxes. If the seller handles the full bill, the buyer may instead reimburse the seller for the buyer’s portion. These are settlement adjustments, not extra taxes imposed by the calculator.

Tax years do not always run January through December. Some jurisdictions use fiscal periods, semiannual bills, different assessment practices, or estimated amounts. Verify the billing period, contract closing-day convention, any exemptions, and whether there is a later reproration once the actual bill is issued.

Worked example: 20 days of prorated property taxes

Suppose the annual property-tax bill is $7,560 and a contract assigns 20 conventional day units to the seller. On a 360-day basis, the seller’s allocated tax equals $7,560 × 20 ÷ 360 = $420.00. If the buyer will pay the bill, that amount is generally a seller-to-buyer closing credit.

If the agreement instead uses 20 actual days in the 365-day year 2026, the allocation is approximately $414.25. Check whether the agreement uses actual days or a 30E/360 convention, which party owns the closing day, and who pays the bill. A real transaction must use its correct tax period and closing dates.

Frequently asked questions

Who pays property taxes at closing?

The seller and buyer are commonly responsible for the periods allocated to each of them. The closing credit depends on who pays the full tax bill and the contract’s terms. The closing agent prepares the final adjustment.

Should the seller or buyer get credit for the closing day?

There is no universal rule for every US real estate sale. Some agreements charge the closing day to the seller; others charge it to the buyer. Set the dropdown to match your signed agreement.

Does the calculator support leap years?

Yes. Actual-day calculations automatically count February 29 when included in the selected tax period. The alternative 30E/360 convention uses 30-day months rather than real calendar days.

Can I use this for a July-to-June tax year?

Yes. Enter July 1 and June 30 of the following year, with the tax amount applicable to that exact period. The same method also works for shorter billed periods.

What if the tax amount is not final at closing?

Enter the best supported estimate. You can adjust it with the optional percentage field, but this is only a scenario. Some purchase contracts provide for reproration after the actual tax bill becomes available.

Does this include supplemental taxes or mortgage escrow?

No. Special assessments, rollback taxes, penalties, escrow funding, exemptions and property-specific credits are not calculated. Review those separately with your title or escrow professional.

Source and disclaimer: The CFPB Closing Disclosure explainer distinguishes adjustments for seller-paid prepaid items and items unpaid by the seller. This calculator provides educational estimates, not a binding closing statement, legal opinion, or tax assessment. Final prorations depend on the contract, local rules, actual tax bill, and settlement agent.