Property Tax Proration Calculator

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

By Konstantin Iakovlev · Updated April 2026 · Source: CFPB — Owning a Home

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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

At closing, the year's property taxes get split between buyer and seller according to how long each one owned the home, and this tool pins down each party's exact share so the settlement is fair. Knowing the prorated amount ahead of time helps both sides budget, heads off last-minute disputes, and keeps the closing on track, which matters all the more alongside the assessment cycles and tax deadlines that fall in 2026.

The math starts by converting the annual property tax bill into a daily rate, then assigning that daily cost to each party for the number of days they hold responsibility within the tax year, measured up to the closing date. Expressed as a formula, that is (Annual Tax / 365 days) * Number of Days Responsible.

Leap years can throw off a proration, though 2026 isn't one and the day count stays standard. Payment schedules are the other wrinkle: jurisdictions differ on whether taxes are billed annually or semi-annually, and that affects how money actually changes hands at the table even when the proration math itself doesn't move. Confirm the precise tax year and assessment period with your real estate agent or title company before you sign.

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.

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