🎯 Understanding Property Taxes at Closing: What You Really Owe

Ok Fam, let’s break it down real quick because we get this question all the time when folks are buying or selling a home:

👉🏾 If I close on my home halfway through the year, am I responsible for the full year's property taxes?

Short answer? Nope. But here’s how it really works.

🏡 How Property Taxes Actually Work in Florida

In Florida, property taxes are billed once a year—but they're meant to cover the entire calendar year (January 1st through December 31st). The catch? You don't actually pay them until the end of the year, when the tax bill comes out in November.

So when you’re buying or selling a home mid-year (or really anytime before November), we have to figure out who’s responsible for what. And that’s where prorated property taxes come in.

📋 What Happens at Closing?

When you close on a house:

• The seller is responsible for paying their share of property taxes for the time they owned the home that year.

• The buyer picks up from the day they take over ownership forward.

But because the actual tax bill isn’t out yet, we use the previous year’s tax amount as a guide to estimate what those prorated amounts should be. If taxes are expected to go up (like after a homestead exemption drops off or a reassessment), we may adjust a little to cover it.

At closing, the seller gives the buyer a credit for their portion of the taxes based on how long they owned the property that year. Then when the bill finally comes out in November, the buyer pays the whole tax bill, but they already got a check to cover part of it!

💡 Real Talk: Why This Matters

If you're buying, don’t be surprised when your lender starts collecting for future property taxes in your escrow account immediately. That’s just them stacking up your tax money month by month so that when that November bill drops, you’re ready.

If you're selling, remember you’re not off the hook for taxes just because you sold early in the year. Your share still matters and will be part of your final settlement.

🗝️ Bottom Line:

• You do not owe the full year’s property taxes if you’re selling before December 31st.

• At closing, property taxes are prorated so everybody pays their fair share based on time in the home.

• Always ask your Realtor or closing agent to walk you through your settlement statement so you know exactly what’s happening with your money.

Buying or selling in Gainesville or Alachua County? We're here to make sure you close with confidence and clarity every step of the way.

🔗 Got more questions about closing costs, escrow, or what to expect when you’re buying or selling? Hit us up! Let's make it make sense!