Real Estate taxes for your closing

Tax collections

The County Treasurers in Ohio collect Real Estate Taxes twice a year. This typically happens in the months of February and July.

understanding Long Proration of taxes for your closing

Most residential real estate transactions use the long proration method for paying taxes, Following are some examples:

Example 1:

Bob Sells his home in January 2026. What does he owe?

  • Taxes charged from January 2025 through January 2026 (meaning the following)

    • February 2026 tax bill

    • July 2026 tax bill

    • Proration of taxes for January 2027

Example 2:

Bob Sells his home in May 2026. What does he owe? (He has already paid the February Tax Bill.)

  • Taxes charged from July 2025 through May of 2026 (meaning the following)

    • July 2026 tax bill

    • Proration of taxes from January 2027 through May of 2027

Example 3:

Bob Sells his home in October 2026. What does he owe? (He has paid both the February and July tax bills for 2026)

  • Taxes charged from January 2026 through October 2026 (meaning the following)

    • Proration of taxes for January 2027 through October 2027

Understanding Tax collections

Real Estate Taxes are collected in arrears. For Example:

Bob pays his February, 2025 tax bill.

  • He is paying for taxes from January 2024 through June of 2024.

Bob pays his July, 2025 tax bill

  • He is paying for taxes from June 2024 through December 2024

Methods of tax prorations in real estate transactions

There are two methods of tax prorations used.

Long Proration is the primary method used for calculating taxes owed.

Short Proration is very rarely used.

understanding short Proration of taxes for your closing

Very few closings use the Short Proration method for paying real estate taxes. Following are some examples:

Example 1:

Bob Sells his home in January 2026. What does he owe?

  • Taxes charged from January 2025 through June 2025 and from January 2026

    • February 2026 tax bill

    • Proration of taxes for January 2027

Example 2:

Bob Sells his home in May 2026. What does he owe? (He has already paid the February 2026 Tax Bill.)

  • Taxes charged from January 2026 through May 2026.

    • Proration of taxes for January 2027 through May 2027.

Example 3:

Bob Sells his home in October 2026. What does he owe? (He has paid both the February and July tax bills for 2025)

  • Taxes charged from July 2026 through October 2026 (meaning the following)

    • Proration of taxes for July 2027 through October 2027