Selling in Texas? Here's why you'll credit the buyer for this year's property taxes
Texas property taxes are paid in arrears. That one fact shows up on every seller's closing statement.
Published 2026-10-15 · 4 min read · Source: Editorial (DREI). Verify specifics with your title company and county tax office.
In Texas, property taxes for a calendar year aren't due until the end of January of the following year. So when you sell in, say, September, nobody has paid this year's taxes yet. The buyer will pay the full bill next January.
To make that fair, the title company prorates. You, the seller, credit the buyer for the days you owned the home this year, from January 1 through the closing date. The credit appears as a deduction on your settlement statement.
A quick way to estimate it
- Take last year's total tax bill (or the current estimate if values or rates changed).
- Divide by 365 to get a daily amount.
- Multiply by the number of days from January 1 to closing.
If last year's bill was $9,000 and you close on July 1, you've owned about 181 days of this year. That makes the credit roughly $9,000 ÷ 365 × 181 ≈ $4,460.
What changes the number
- Exemptions that drop off at sale, like homestead or over-65.
- A new appraisal or tax rate. Title companies often prorate on the prior year and settle up later if the contract allows.
- MUD or PID assessments, which are prorated or handled separately depending on how they're billed.
Our Seller Proceeds tool includes this proration automatically. Enter your annual tax bill and target closing date.
This is general information, not tax advice. Your title company's settlement statement is the final word.