Florida Property Tax Proration at Closing in Davie: Who Pays What

What Property Tax Proration Means at a Davie Closing

When you buy or sell a home in Davie, the property taxes for the current year get split between you and the other party at the closing table. That split is called proration. It shows up as a line on your settlement statement, and for most buyers it is the single most misunderstood number in the whole transaction.

The confusion starts with one fact that surprises almost every out of state buyer: Florida property taxes are paid in arrears. The tax bill Broward County mails on November 1, 2026 covers the entire 2026 calendar year, January 1 through December 31. So if you close in June, no one has paid the 2026 taxes yet, and the bill will not even arrive for another five months. The closing agent has to estimate and divide that future bill fairly between the seller who owned the home for part of the year and the buyer who will own it for the rest.

This guide walks through exactly who pays what, how the number is calculated, and the one trap that makes buyers feel blindsided months after they move in. For a full picture of every line on your settlement statement, pair this with our Davie closing costs breakdown.

Why Florida Taxes Are Paid in Arrears

In many states, property taxes are paid in advance. Florida does the opposite. The county assesses value as of January 1, calculates the bill over the year, and does not send it until November 1. Payment is due by March 31 of the following year, with a discount ladder that rewards paying early.

Because the bill lands so late in the year, any sale that closes before November means the current year taxes are still unpaid at closing. The seller has been living in the home and building up a tax obligation the whole time, but there is no bill to pay yet. Proration solves this by having the seller hand their share to the buyer at closing, so that when the bill finally arrives, the buyer can pay the full amount without absorbing months of taxes for a home they did not yet own.

Broward County publishes the full payment schedule and discount tiers through the Broward County Records, Taxes and Treasury Division.

Who Credits Whom at Closing

The seller owned the home from January 1 through the day before closing. Those are the seller’s days, and the seller is responsible for the taxes on them. Since the seller has not paid anything yet, the seller gives the buyer a credit for that share at closing. The buyer then owns the home for the remainder of the year and pays the entire tax bill in November.

Here is the plain version:

• The seller credits the buyer for the seller’s ownership days (January 1 to the day before closing).
• The buyer pays the full annual bill when it mails on November 1.
• The math nets out so each party covers only the portion of the year they actually owned the home.

The standard Florida FAR BAR contract prorates taxes as of the day before the closing date. Your settlement statement shows the exact daily rate and the total credit. If you want to see how this fits with every other seller side number, our Davie seller net sheet lays out what a seller actually walks away with after proration and costs.

How the Proration Is Calculated

Because the current year bill does not exist at a midyear closing, the closing agent uses the most recent figure available. In most Davie transactions that is the prior year gross tax amount, pulled from the Broward County Property Appraiser record. The agent divides that annual amount by 365 to get a daily rate, then multiplies by the number of days the seller owned the home.

Follow these steps to estimate your own proration.

1. Find the prior year gross tax. Look up the property on the Broward County Property Appraiser site and note the total tax amount for the most recent year.

2. Divide by 365. That gives you the daily tax rate for the property.

3. Count the seller’s days. Count from January 1 through the day before closing.

4. Multiply. Daily rate times seller days equals the credit the seller gives the buyer.

5. Confirm on the statement. Match your estimate against the proration line on the settlement statement before you sign.

A worked example: a Davie home with a prior year tax of 7,300 dollars has a daily rate of 20 dollars. If the sale closes on July 1, the seller owned the home for 181 days, so the seller credits the buyer roughly 3,620 dollars. The buyer pays the full bill in November and the credit offsets the seller’s share.

The Save Our Homes Trap Buyers Miss

This is the part that catches nearly every buyer, and it is the reason to read this section twice. The proration credit is calculated on the seller’s assessed value. If the seller owned the home for years under Florida’s Save Our Homes benefit, their assessed value was capped at 3 percent growth per year and may sit far below what you just paid for the house.

When the sale closes, that cap is removed. On the next January 1, the Broward County Property Appraiser reassesses the home at full market value, which is usually close to your purchase price. Your first full tax bill is based on that higher value, not the seller’s old capped value. The result is that your actual November bill can be thousands of dollars higher than the credit you received at closing.

Buyers who budget from the closing credit get a shock in November. Buyers who budget from the market value estimate do not. A quick way to protect yourself: ask your agent to estimate your first full year taxes using your purchase price and the current Davie millage rate, not the seller’s prior bill. You can see how taxes fit into total ownership expenses in our Davie cost of living guide.

One more step protects your long term bill. You must file for your own homestead exemption by March 1 of the year after you buy, which removes 50,000 dollars of assessed value and starts your personal Save Our Homes 3 percent cap. Until you file, you are taxed on full assessed value with no exemption. The exemption process runs through the Broward County Property Appraiser.

Frequently Asked Questions

Are Florida property taxes paid in advance or in arrears?

In arrears. The bill mailed November 1 covers the calendar year that is already almost over. That is why a midyear Davie closing prorates the current year taxes between buyer and seller before any bill has been issued.

Who pays property taxes at a Davie closing, the buyer or the seller?

Both, in proportion to the days each owns the home. The seller credits the buyer for January 1 through the day before closing, and the buyer pays the full bill when it arrives in November. Each party effectively covers only their ownership period.

Why is my November tax bill higher than the proration credit I received?

Because the credit was based on the seller’s capped Save Our Homes assessed value, while your November bill is based on the reassessed market value after the sale removed that cap. The reassessment routinely pushes the real bill well above the closing credit.

Do I get money back at closing for property taxes in Florida?

As a buyer you receive a credit from the seller, which lowers your cash to close. You are not getting free money. You are being pre funded for the seller’s share so that you can pay the whole bill in November.

When do I need to file for homestead exemption after buying in Davie?

By March 1 of the year after you purchase. Filing removes 50,000 dollars of assessed value and starts your own 3 percent Save Our Homes cap. Missing the deadline means a full year taxed at market value with no exemption.

Talk to a Davie Real Estate Expert

Property tax proration is one line on the settlement statement, but the reassessment behind it decides what you actually pay every November for as long as you own the home. Before you buy or sell in Davie, get a real estate professional who runs the market value tax estimate up front so there are no surprises after closing. Review the current numbers in our Davie real estate market update, then reach out for a straight answer on your specific property.

Schedule a Davie strategy call

Anthony Spitaleri, Broker Associate | Coldwell Banker

Serving Davie, Florida and the surrounding Broward County communities

Phone: 954-235-5783

Davie, FL 33324

About the Author

Anthony Spitaleri is a Broker Associate with Coldwell Banker, one of the most established residential real estate brands, with approximately 2,700 offices globally and roots dating to 1906. A Davie native who returned home in 2025 after 13 years in Miami Beach, Anthony specializes in luxury homes and estates above 1 million dollars, acreage and equestrian properties with no HOA, and relocation buyers moving to Davie from out of state. He created livingindavieflorida.com to give buyers and sellers straight answers about the Davie market. Licensed since 2013 (BK3281907), Anthony is a Certified Strategic Coach through Coaching Services International (CSI), an active member of the Davie Cooper City Chamber of Commerce, and a weekly volunteer at Bit by Bit Therapeutic Riding Center in Davie.