What Is Property Tax Proration at a Florida Closing?

Short answer

Property tax proration splits the year's tax bill between seller and buyer by the days each owns the home. Florida taxes are paid in arrears: the bill for a calendar year is due November 1 of that year and is delinquent after April 1 of the next (F.S. 197.333, as of November 2026). So at most closings the seller has not paid yet, and the seller credits the buyer for January 1 through the day before closing.

Definition

A closing adjustment that divides the current year's property tax between seller and buyer. In Florida it almost always shows as a seller credit to the buyer on the Closing Disclosure.

Worked example

Example only: last year's tax was $6,000 and closing is July 1. The seller owns January 1 through June 30, which is 181 days. The FR/BAR contract allows for the maximum discount (4% in November in Miami-Dade), so the base is $5,760. Seller credit: $5,760 x 181 / 365 = about $2,856. In November the buyer, or the buyer's escrow account, pays the full bill.

What the FR/BAR contract says

Standard K of the FR/BAR contracts (as of November 2026):

• Taxes are prorated as of the day before closing, so the buyer owns the closing day.
• Use the current year's tax if known, with allowance for the maximum discount and any exemptions.
• If the current millage is not set but the assessment is out, use that assessment with last year's millage.
• If neither is out, use last year's tax. A proration based on an estimate can be readjusted when the real bill comes, if a party asks at closing.

Closing in November or December

Bills come out around November 1. Miami-Dade's early-payment discounts are 4% in November, 3% in December, 2% in January and 1% in February (F.S. 197.162). If the seller has already paid, the buyer credits the seller for the rest of the year instead. If not paid, the title company usually pays the bill at closing from the seller's proceeds. Your lender may also collect a cushion for your escrow account.

In South Florida

Proration uses the seller's bill, but your bill next year can be much higher. A sale removes the seller's homestead exemption and Save Our Homes cap, and the property is reassessed. Also, Florida Amendment 3 passed on November 3, 2026 (about 62%, unofficial until certified): the non-school homestead exemption rises to $150,000 in 2027 and $250,000 in 2028, owners who become permanent Florida residents after December 31, 2026 phase in to the larger amount by their 5th year, and the non-homestead cap drops from 10% to 5% for non-school taxes from January 1, 2027. School taxes do not change. The first bills affected arrive November 2027, so a 2027 closing prorated on a 2026 bill may be readjusted when the new bill comes out.