Free calculator · Updated
Property Tax Proration Calculator
Split the tax bill between buyer and seller as of the closing date, and see who credits whom.
Seller credit to buyer
$2,975
The seller owns 181 of 365 days in the tax year (Jan 1, 2026 to Dec 31, 2026).
- Seller’s share50%
- Buyer’s share50%
Breakdown
The bill is unpaid, so the buyer will pay all of it later and the seller credits the buyer for the days before closing. Supplemental bills, installments and escrow-held taxes can change this; the title or escrow officer prepares the final figures.
How the calculator works
- Enter the annual tax bill and the closing date.
- Set when the county’s tax year starts and whether this period’s bill is already paid.
- Choose who is charged for closing day and the day-count method; the credit updates instantly.
Assumptions to check
- One bill covering the full tax year; installments and supplemental bills are not split separately.
- Days are counted on calendar dates, the same in every time zone.
- Escrow accounts held by the seller’s lender are refunded separately and are not part of this credit.
Frequently asked questions
What is property tax proration?
At closing, the year’s property taxes are split between the seller and buyer by how many days each owns the home during the tax period. The split shows up as a credit on the settlement statement.
Who pays property taxes at closing, the buyer or the seller?
Both, in proportion to their days of ownership. If the bill has not been paid yet (taxes paid in arrears), the buyer will pay all of it later, so the seller credits the buyer for the seller’s days. If the seller already paid the bill in advance, the buyer reimburses the seller for the days after closing.
How are the days counted?
The calculator counts the seller’s days from the start of the tax year through the closing date (including closing day, or not, as you choose). Daily tax = annual tax ÷ days in the tax year; each party owes their days × the daily rate. You can switch to 30-day months (a 360-day year), which some areas use.
What if the county uses a fiscal tax year?
Set “Tax year starts” to the month the county’s tax year begins (for example July 1). The calculator then counts days from that date instead of January 1.
Does every state prorate taxes the same way?
No. States and counties differ on the tax year, the billing schedule (annual, semi-annual, quarterly), whether taxes are paid in advance or in arrears, who is charged for the day of closing, and the day-count convention. Confirm with the title or escrow officer, who prepares the final figures.
Sources
- CFPB: Closing Disclosure explainerWhere items paid or unpaid by the seller appear as adjustments on the settlement statement.
- Illinois Department of Revenue: property tax prorations at closingAn example of a state explaining the seller’s credit to the buyer.
Links checked .
When the seller credits the buyer, enter the amount in the seller net sheet as “Prorated taxes and HOA” to see what the seller walks away with.
Related calculators
Estimates for planning and illustration only. Not financial, tax, legal or appraisal advice: confirm figures with the lender, title or escrow company, or other professional handling the transaction.