Property Tax Proration Calculator

When you buy a home, property taxes are divided between the buyer and the seller based on how long each owned the home during the tax period. That split is called a property tax proration. Use this tool to estimate the charge or credit that typically shows up on the closing disclosure.

Why calculate property tax prorations?

As a homebuyer, prorations help you understand how much of the property taxes you are responsible for at closing. The seller pays for the time they owned the home, and you pay for the time you will own it. Depending on whether taxes were already paid or are still due, the result may appear as a charge to the buyer or a credit to the buyer.

How to use this calculator

1. Enter the closing date — the day the home officially becomes yours.
2. Enter the tax due date — when property taxes for the period are due (for example, Michigan summer or winter tax dates).
3. Enter the annual tax amount — the full property tax bill for the year (or the installment you are prorating).

If the due date is before closing, the estimate is typically a charge to the buyer for the days after the due date through closing. If the due date is on or after closing, the estimate is typically a credit to the buyer for the seller’s prepaid share.

NOTE: Riverbank Finance LLC is not offering tax advice. The information provided by this property tax proration calculator is for illustrative purposes only. Actual prorations are set by your purchase agreement, local tax calendar, and closing agent.