Ohio Property Tax Prorations

How are tax prorations calculated at closing?

What is Tax Proration?

Tax proration is a credit that the seller gives to a buyer at closing towards the tax bill that will come due after the transaction is finished. The method that is used determines if the seller gives  a credit for a portion of the time they have owned the property (Lucas County Method) or bring the taxes current for the buyer (wood County Method) 


Due and Payable Method

(Used almost exclusively in Lucas County)

The seller gives a credit for just the portion of the next bill that the buyer will receive and have to pay. This proration method calculate it back to the last due and payable date (either June 20th or December 20th). The proration length is never more than 180 days; therefore, it is typically "pro seller".

Example:  Is closing February 28th, we will prorate back to December 20th, and the seller will pay a portion equal to 69 days of taxes.


Lien Method

(Used in almost every other county in Ohio)

Seller pays the equivalent of the next tax bill due plus a pro-rated share of the bill after that. This proration is calculated back to either January 1st of the current year or July 1st of the previous year. The proration length can be up to 365 days; therefore is typically "pro-buyer."

Example:  If closing February 28th, the taxes will be prorated back to July 1st, and the seller will pay a proration equal to 242 days of taxes. 


The method used on the settlement statement is based on the language in the purchase contract-not necessarily geography. Therefore, it is critical to select the best method for your transaction at the time of offer and acceptance.

Taxes in Ohio are billed six months in arrears. Legend has it is that this started during the Depression. Many cannot afford to pay property taxes, so the treasurer did not send out bills; now we are six months behind pay property taxes. 


2018 1St Half Taxes - (Jan, Feb, Mar, April, May, June) are due in January of 2019

2018 2nd Half Taxes - (July, Aug, Sept, Oct, Nov, Dec) are due in July of 2019


Helpful Tax Proration Documents