Split property taxes, HOA dues or rent between the buyer and seller as of the closing date. Switch between the 360-day and 365-day methods and choose who owns the day of closing; the steps show how the answer was reached.
Results
Closing statement entry
Credit buyer $2,712.00 / debit seller $2,712.00
$2,712.00
Seller's share
226 of 365 days
$2,712.00
Buyer's share
139 of 365 days
$1,668.00
Daily rate
365-day year (actual days)
$12.00
Period
Jan 1, 2026 – Dec 31, 2026
Worked steps
The math keeps the full daily rate and rounds only the final answer. If an exam rounds the daily rate to the cent first, its answer can differ by a few cents; pick the closest choice.
Every proration question is the same four steps. The question tells you which year to use and who owns the closing day.
Example: unpaid taxes, 365-day year
Closing is August 14. This year's property tax of $4,380 hasn't been paid; the buyer will pay the bill later. The tax year is the calendar year and the seller pays for the day of closing. What is the entry?
Same closing, 360-day year
Paid ahead instead?If the seller had already paid the full $4,380, the buyer owes the seller for the buyer's days. With the 365-day year that's 365 − 226 = 139 days × $12.00 = $1,668.00: credit seller, debit buyer.
California's tax year starts July 1.California property tax bills cover a fiscal year from July 1 to June 30, so count the seller's days from July 1 for a California tax proration. Use the July 1 option in the calculator.
Who owns the closing day in practice.Texas's standard resale contract prorates taxes, interest, rents and dues "through the Closing Date," so the seller pays for that day. The Florida Realtors/Florida Bar "AS IS" contract prorates "as of the day prior to Closing Date," so the buyer pays for it. Exam questions state the rule they want; follow the question.
Source: TREC One to Four Family Residential Contract (Resale), form 20-19, paragraph 13; Florida Realtors/Florida Bar "AS IS" Residential Contract (Rev. 8/24), Standard K; Los Angeles County Auditor-Controller property tax calendar (fiscal year July 1 to June 30).
Divide the yearly tax by the days in the year (360 or 365) to get a daily rate. Count the seller's days from the start of the tax year through closing, multiply by the daily rate, and give the buyer the rest of the year. If the taxes haven't been paid yet, credit the buyer and debit the seller for the seller's share. If the seller already paid them, credit the seller and debit the buyer for the buyer's share.
The 360-day method (also called the statutory or banker's year) treats every month as 30 days, so the daily rate is the yearly amount ÷ 360 and you count days as full months × 30 plus the day of the month. The 365-day method uses the actual calendar, so you count the real days. The two give slightly different answers, so use the one the question names.
It depends on the contract or the question. Texas's standard TREC resale contract prorates through the closing date, so the seller pays for that day. The Florida Realtors/Florida Bar "AS IS" contract prorates as of the day before closing, so the buyer pays for the closing day. On an exam, use whatever the question says.
Whoever paid more than their share gets the credit. Taxes paid later (in arrears) are unpaid at closing, so the seller owes the buyer for the seller's days: credit buyer, debit seller. Something the seller paid ahead, like an HOA year, gets refunded for the buyer's days: credit seller, debit buyer. Rent the seller already collected belongs partly to the buyer: credit buyer, debit seller.
Other free calculators: commission splits · mortgage, LTV & points · transfer tax