Typically the Seller Covers Taxes Up to the Closing Date
In most real estate transactions, the seller is responsible for paying property taxes accrued up to the date of closing. This ensures the buyer is not liable for taxes incurred while the seller owned the property.

• Taxes are prorated based on the number of days each party owns the property during the tax year
  
• The seller’s share is calculated and deducted from their proceeds at closing
  
• Proration is standard in both residential and commercial/industrial transactions
  

Handled Through Escrow and Closing Statements
During closing, the escrow or title company calculates prorated property taxes and includes them in the final settlement statement (e.g., HUD-1 or closing disclosure).

• If taxes are unpaid, the seller may pay them in full at closing
  
• If already paid for the year, the buyer reimburses the seller for their unused portion
  
• All prorations are reviewed and agreed upon before closing is finalized
  

Subject to Purchase Agreement Terms
While prorating taxes is the standard practice, the purchase agreement ultimately governs who pays and how taxes are allocated. The buyer and seller may negotiate different terms depending on the market or deal structure.

• Any deviations must be clearly stated in the contract
  
• In some cases (e.g., tax-deferred sales or distressed properties), the buyer may assume full tax liability
  
• Local customs and tax cycles may also influence proration timing and responsibility