When buying or selling a home in Ohio, one of the most common questions we hear is: “How are property taxes handled at closing?” It's a great question — and an important one. Understanding how this works ensures there are no surprises on closing day.

🧾 Property Taxes in Ohio: Paid in Arrears

In Ohio, property taxes are paid in arrears, which means you’re paying for time you've already lived in the home. For example, the first half of your 2024 taxes won’t be due until early 2025. Because of this, when a property changes hands, the seller owes the buyer for their share of the property taxes up to the date of closing.

💰 How Prorated Taxes Work at Closing

At the closing table, the title company will calculate how much the seller owes in property taxes and credit that amount to the buyer. The buyer then becomes responsible for paying the full upcoming tax bill, but with the seller's contribution already included in their funds.

Let’s break it down:

• Seller pays their portion of taxes as a credit at closing.

• Buyer receives that credit and then pays the next tax bill when it comes due.

This ensures a fair distribution of tax responsibilities between both parties.

📌 Example:

If the closing date is September 1st, the seller will owe property taxes from January 1st to August 31st. That amount will be prorated and added to the buyer’s side of the closing statement as a credit.

📝 Why It Matters

If you’re not prepared for this cost, it can feel like a surprise during an already complex process. Understanding how taxes are prorated helps you:

• Budget properly

• Avoid unexpected fees

• Understand your closing statement

✅ Work with a Team That Has Your Back

At Great Move Realty, we walk our clients through every detail of the closing process. That includes working with trusted title professionals like Andrea Hyatt to ensure everything — including your taxes — is handled smoothly and transparently.

Thinking about buying or selling in Northeast Ohio? Let’s talk — your home is our priority.