Split a property tax bill between buyer and seller in seconds - no signup, nothing saved
Enter a closing date and a tax amount and the summary updates as you type. Estimate only - confirm the figures against the actual tax bill before closing.
Five fields, and the numbers appear as you type
The arithmetic behind the summary panel
Every proration starts with the length of the tax period. The calculator counts the days from the start of the period through its end, inclusive, so a full year comes to 365 days (366 in a leap year) rather than an assumed 360.
The tax amount divided by the days in the period gives the daily rate. It is carried to four decimal places so that long periods and large bills do not drift by a dollar or two when the shares are added back together.
Seller days run from the start of the tax period to closing; the buyer takes the rest of the period. The seller's share is their proportion of the bill, and the buyer's share is whatever is left, so the two always add back to the full amount.
If the seller has already paid the bill, the buyer reimburses the buyer's share. If the buyer will pay it after closing, the seller credits the seller's share. If the bill is unpaid or paid through closing, the shares are informational and nothing changes hands.
A tax proration splits a property tax bill between the buyer and the seller according to how much of the tax period each of them owned the property. The seller is responsible for the days up to closing and the buyer for the days after, so whoever ends up paying the whole bill is reimbursed for the other party's share at closing.
The per diem is the tax amount divided by the number of days in the tax period. The seller's share is the per diem multiplied by the number of days from the start of the tax period through closing, and the buyer takes the remainder of the bill.
It depends on local custom and on what the contract says. The Include Closing Date option lets you count the day of closing as a seller day or leave it with the buyer, so you can match whichever convention your transaction follows.
The buyer's and seller's shares are always calculated. The payment status determines whether money actually changes hands at closing: if the seller already paid the bill, the buyer reimburses the buyer's share; if the buyer will pay the bill after closing, the seller credits the seller's share.
Yes. The calculator is free, requires no account or signup, and nothing you enter is saved. It runs the same proration calculation as Docketman's closing software.
That is what Docketman is for. In the full product, prorations for city, county, school, sewer, and assessment taxes sit on the matter together, flow straight onto the Closing Disclosure and settlement statements, and feed the disbursement ledger - so the numbers only get entered once.
Inside Docketman the proration sits on the matter itself, with a tab for each tax you need to prorate - city, county, assessment, school, sewer, and more. Each one carries its payee, so the result does not stop at a number on screen:
Docketman runs every proration on the file and carries the results onto the Closing Disclosure, the settlement statements, and the ledger automatically