🧾 What Is Tax Proration—and Why It Matters When Buying or Selling Property in Florida

Don’t Let a Math Error Cost You Thousands at Closing

When buying or selling property in Florida, most people focus on the price, the mortgage, and the paperwork. But there’s a hidden section in the closing statement that can make a big difference to your bottom line: tax proration.

If you’ve never heard of it—or if you’ve seen it on your settlement statement and didn’t understand what it meant—you’re not alone. But not knowing could cost you.

Let’s break it down in simple terms.

💡 What Is Tax Proration?

In Florida, property taxes are paid at the end of the year, but they apply to the entire calendar year—January 1 through December 31.

So when a property changes hands during the year, the buyer and seller need to fairly split the property tax based on the closing date. This is called proration.

For example:If you buy a home on July 1st, the seller should pay the taxes for January–June, and you (the buyer) will pay for July–December.

This is calculated and reflected in the closing statement—either as a credit to the buyer or a charge to the seller.

⚠️ Why Buyers and Sellers Should Pay Attention

Here’s where problems happen:

📌 Tax proration is often based on last year’s tax amount—not the current year.📌 If the property value went up (due to reassessment or sale), the actual tax bill will likely be higher.📌 This means the seller might not give enough credit to cover their share—and the buyer ends up paying more when the tax bill comes due.

For sellers, this can also be risky: if the numbers are miscalculated, you may be giving more credit than necessary.

🛡️ How I Help My Clients Avoid Costly Surprises

As a real estate attorney and broker, I personally review the tax proration section on every settlement statement my clients receive.

I make sure:✅ The numbers are based on updated tax estimates✅ The split is fair and accurate to the day of closing✅ You’re not being overcharged—or under-credited

I also prepare or adjust documentation if needed, so that everything is done correctly and transparently.

💬 Final Thoughts: A Small Detail That Makes a Big Difference

Tax proration may seem like a minor line on your closing statement, but it can make a $500–$2,000 difference or more—especially in today’s rising tax environment.

When you work with someone who understands both the legal and financial details of a transaction, you’re not just buying or selling a property. You’re protecting your investment.

📩 Want a professional to review your closing documents? Contact me for a free consultation.Let’s make sure your numbers work in your favor—not against you.

What Is Tax Proration—and Why It Matters When Buying or Selling Property in Florida