How to read this result
In the default example, daily tax is $16.44. Seller responsibility is 119 days in the selected 365-day basis. This allocation convention must agree with the actual contract and local practice.
Change one assumption at a time to see how it affects the scenario. Compare periods and cost definitions consistently. Negative results show a modeled shortfall; an unavailable ratio needs a valid denominator.
Formula and methodology
Divide annual property tax by the selected day-count basis. Count seller days through the day before closing or through closing day, as explicitly selected. Buyer allocation is the remaining annual amount.
Enter percentages as whole numbers: 5 means 5%. When used as a factor, the calculation divides a percentage by 100. Percentage outputs multiply the final ratio by 100. Calculations retain precision internally; displayed amounts and rates are rounded to two decimals.
Variables and input definitions
- Annual property tax (USD/year)
- Annual tax amount to allocate. Minimum: 0.
- Closing day of year (day number)
- Closing date converted to day of year. Minimum: 1. Maximum: 366.
- Day-count basis (days)
- 365 actual default; optional 360 if contract/custom dictates. Minimum: 360. Maximum: 366.
- Seller responsible through (select)
- Explicit convention control.
Worked example
This example uses the exact prefilled inputs above. Reset defaults to restore this scenario after making changes.
| Item | Default scenario |
|---|---|
| Annual property tax | $6,000.00 |
| Closing day of year | 120 |
| Day-count basis | 365 |
| Seller responsible through | Day before closing |
| Item | Default scenario |
|---|---|
| Daily tax | $16.44 |
| Seller tax share | $1,956.16 |
| Buyer tax share | $4,043.84 |
Assumptions and limitations
Actual proration conventions and tax due dates vary by jurisdiction and contract. Calculator does not determine legal responsibility.
Seller responsibility is 119 days in the selected 365-day basis. This allocation convention must agree with the actual contract and local practice.
The tool uses values you supply. It does not retrieve market prices, verify leases or inspect a property. Results exclude items outside the listed inputs. Review local requirements and the relevant contract when a payment, fee or allocation depends on them.
Common mistakes
The tax year, payment schedule and closing convention can differ by locality and contract. The day-of-year input is an allocation model, not a legal determination.
Sources and method references
These references provide context for the method and terminology. They do not endorse this tool or validate your property assumptions.
- CFPB — Regulation Z §1026.38 — Closing DisclosureClosing-disclosure treatment of prorated taxes/assessments and transaction adjustments.
- IRS — Publication 523 (2025), Selling Your HomeSelling expenses, commissions, amount realized and real-estate tax day allocation context.
Frequently asked questions
Who pays for closing day in this model?
The seller-responsibility selection controls that day. Day before closing assigns it to the buyer; Closing day includes it in seller responsibility.
Does this estimate the property tax itself?
No. Annual property tax is supplied by the user. The calculator only allocates that known amount.