Property Tax Proration Calculator
Prorate property tax at closing: enter the annual tax, the closing date and whether it is paid in arrears or in advance to see who credits whom, and how much. How it works
Use the Property Tax Proration Calculator
About the Property Tax Proration Calculator
On a $4,800 annual tax with closing on 15 January 2025 and the tax paid in arrears, the seller credits the buyer $197.26: 15 days at $13.15 a day. The property tax proration calculator splits the calendar tax year at the closing date by actual days (365 or 366) or by a 30/360 year, with the closing day charged to the seller or to the buyer.
Proration of a $4,800 tax by closing date, 2025
| Closing date | Seller’s days | Arrears: seller credits buyer | Arrears, 30/360 | Advance: buyer credits seller |
|---|---|---|---|---|
| 15 January | 15 | $197.26 | $200.00 | $4,602.74 |
| 31 March | 90 | $1,183.56 | $1,200.00 | $3,616.44 |
| 15 April | 105 | $1,380.82 | $1,400.00 | $3,419.18 |
| 30 June | 181 | $2,380.27 | $2,400.00 | $2,419.73 |
| 15 July | 196 | $2,577.53 | $2,600.00 | $2,222.47 |
| 30 September | 273 | $3,590.14 | $3,600.00 | $1,209.86 |
| 15 October | 288 | $3,787.40 | $3,800.00 | $1,012.60 |
| 31 December | 365 | $4,800.00 | $4,800.00 | $0.00 |
Calendar tax year 2025 (365 days), closing day charged to the seller. Seller’s days and the advance column use actual days.
Frequently asked questions
- How do you calculate property tax proration?
- Daily rate = annual tax ÷ days in the year, and the seller’s share = daily rate × days from 1 January to the closing. $4,800 ÷ 365 = $13.15 a day; a 30 June 2025 closing is day 181, so the seller’s share is $2,380.27.
- Arrears or advance: which do I choose, and who pays at closing?
- Ask whether this year’s bill has already been paid. If the county bills after the period it covers, or the bill is not due until after closing, the tax is in arrears: the buyer will pay it, so the seller credits the buyer for the seller’s days. If the seller has already paid this year’s bill, choose in advance: the buyer credits the seller for the buyer’s days, $2,419.73 for a 30 June closing on a $4,800 bill. The due dates on the county tax bill, or the title company, tell you which.
- What is the 360-day method?
- 30/360 counts every month as 30 days and the year as 360, so the daily rate on $4,800 is $13.33 and a 15 January closing gives $200.00 instead of $197.26. 30 June is day 180 and 31 December day 360. Some title and escrow companies use it; your settlement agent can say which applies.
- Does the closing day count for the seller or the buyer?
- The contract and local practice decide. Charged to the buyer, the seller owns 14 days in a 15 January closing and credits $184.11 instead of $197.26.
- Can I prorate from the assessed value and the tax rate?
- Yes. Choose Tax Rate + Assessed Value: annual tax = assessed value × mills ÷ 1,000. $450,000 at 10.67 mills is $4,801.50 a year, and a 30 June 2025 closing in arrears gives the buyer a $2,381.02 credit.
- How does a leap year change the proration?
- With actual days the year has 366 days: a 30 June 2024 closing is day 182, and the seller’s share of $4,800 is $2,386.89.
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