This calculator is designed to estimate the
real estate tax proration between the home buyer & seller at closing. This
proration calculator should be useful for annual, quarterly, and semi-annual
property tax proration at settlement (calendar & fiscal year). Simply close
the closing date with the drop down box. Then, enter the local, county,
and school tax amount and enter the tax period (i.e. FROM - 1/1/2014 TO
- 12/31/2014). Choose paid or not paid. This calculator will count days
owned and per diem tax cost.
CALENDAR YEAR PRORATION EXAMPLE:
Municipality charges $3,650 per calendar year ($10 per day). Closing is
on June 1st. Seller paid the real estate taxes. Calendar year proration:
The seller occupied the home from January 1st to May 31st or 151 days. The
buyer reimburses the seller from and including June 1st to December 31st
which equals 214 days. The buyer will pay the seller $2,140 at closings
(214 days X $10 per day).
FISCAL YEAR PRORATION EXAMPLE:
School district charges $3,650 ($10 per day). Closing is on June 1st, 2009
Seller paid the real estate taxes. The school district's billing period
is from JULY 1ST 2008 to JUNE 30th 2009. The school district's year runs
from the previous year to the current year. The seller occupied the house
and is responsible for the school tax from July 1st 2008 to the day before
closing or 335 days. The buyer will pay the seller for the settlement date
of June 1st to June 30th or 31 days.
The calculators and information contained herein are made available
to you as a self-help tool for illustrative use only. Examples are hypothetical.
We can not and do not guarantee the applicability or accuracy in regards
to your individual circumstances. I encourage you to seek personalized
advice from qualified professionals.