Property Tax Proration Calculator

Calculate buyer and seller property tax shares at closing from annual tax and closing date.
$

Use the Property Tax Proration Calculator above to calculate your results. Enter your values and see instant results — all calculations run in your browser.

Disclaimer: This calculator is for informational purposes only and does not constitute tax, financial, or legal advice. Results are estimates based on the information you provide and current rates. Always consult a qualified tax professional or financial advisor for advice specific to your situation.

How It Works

Our Property Tax Proration Calculator helps both buyers and sellers understand their exact share of annual property taxes at closing, ensuring a fair and accurate financial settlement. This is crucial for budgeting and avoiding unexpected costs, especially with property tax deadlines and assessment cycles in 2026. Knowing your prorated tax amount upfront can prevent disputes and streamline the closing process for everyone involved.

The proration is calculated by determining the daily tax rate based on the annual property tax amount. This daily rate is then multiplied by the number of days each party (buyer and seller) is responsible for within the tax year, up to the closing date. The formula is: (Annual Tax / 365 days) * Number of Days Responsible.

A common mistake is forgetting to account for leap years, though 2026 is not one. Also, be aware that tax payment schedules vary by jurisdiction (e.g., semi-annual vs. annual), which can impact how funds are exchanged at closing, even if the proration calculation remains the same. Always confirm the exact tax year and assessment period with your real estate agent or title company.

Example: 2026 Property Tax Proration in Action

  1. 1 Let's say a property has an annual property tax of $5,000 for 2026, and the closing date is set for July 15, 2026.
  2. 2 First, we calculate the daily tax rate: $5,000 / 365 days = $13.6986 per day. The seller is responsible for taxes from January 1, 2026, to July 14, 2026 (195 days). The buyer is responsible from July 15, 2026, to December 31, 2026 (171 days).
  3. 3 Seller's share: 195 days * $13.6986/day = $2,671.23. Buyer's share: 171 days * $13.6986/day = $2,332.46.
  4. 4 At closing, the seller will typically credit the buyer for the buyer's portion of the taxes if the taxes for the entire year have already been paid by the seller, or the buyer will be responsible for their portion if taxes are due later in the year. This ensures each party pays only for the days they owned the property in 2026.

Source: CFPB — Owning a Home · Last updated: April 2026

Frequently Asked Questions

How are property taxes prorated at closing?
Annual property taxes are divided by 365 to get a daily rate. The seller owes from January 1 (or the last payment date) through the closing date. The buyer owes from the closing date through the end of the tax period. These amounts appear as credits and debits on the closing statement.
Who pays property taxes at closing, buyer or seller?
Both pay their proportional share. The seller pays for the days they owned the property and the buyer pays for the rest of the year. If taxes are prepaid, the buyer credits the seller. If taxes are in arrears, the seller credits the buyer for unpaid days.
What if property taxes have not been assessed yet at closing?
The proration is based on the prior year's tax amount as an estimate. Some contracts include a reproration clause that adjusts the amounts once the actual tax bill is issued. Your closing agent will note whether the proration is final or estimated.

You might also need

Mortgage Calculator 2026 — Payment, Amortization & PMI

Calculate your monthly mortgage payment with taxes, insurance, PMI, and HOA. View full amortization schedule. Free, instant results based on current rates.

FHA Loan Calculator 2026 — MIP, Down Payment & Limits

Calculate FHA loan payments including upfront MIP (1.75%) and annual MIP premiums. See when MIP drops off. Free, instant results based on 2026 FHA limits.

Home Affordability Calculator — How Much House Can You Afford?

Find out how much house you can afford based on income, debts, down payment, and current mortgage rates. Free, instant results with DTI ratio breakdown.