Texas Real Estate Closing Proration Calculator
BLUF (Bottom Line Up Front): Property taxes and rental income are prorated at closing so each party is financially responsible only for their specific days of ownership. Under Texas customs, the seller owns the property through the day of closing.
Live Interactive Calculator
Proration Results (Paid in Arrears)
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Seller owes Buyer for accrued property taxes.
Since property taxes are paid in arrears, the seller must credit the buyer at closing for the portion of the year the seller owned the home.
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What does this calculate?
Calculators provide immediate verification, but licensing exams require you to reconstruct this arithmetic by hand on paper. Understanding the core financial boundaries, variables, and statutory margins of this formula is critical to securing your Texas licensing credentials.
Daily Rate = Annual Bill ÷ Calendar Days (360 or 365) Seller Days = Total Days Owned from Jan 1 through Closing Seller Share = Daily Rate × Seller Days Adjustment = Taxes are in arrears, meaning Seller Debited and Buyer Credited.
Under Texas custom, the seller owns the day of closing (meaning the closing day counts as a seller day). Many national-style exams mistakenly attribute closing day to the buyer. Additionally, check the exam question carefully: it will state whether to use a 360-day statutory year (30 days/month) or a 365-day calendar year.
Worked Texas Exam Example
TREC Form 20-17 Par. 13
Standard Contract Prorations
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