Before Closing

• 1). Locate the preliminary title report which was provided to you at the time of closing. This report will show the recorded value as reported to the county by the developer who constructed the property. Your initial amount of taxes charged at closing will be based on this value.
  
  
• 2). Calculate your initial tax amount by dividing the value reported by the developer and 1.25 percent. Then, divide the results by 12 to reach a monthly amount.
  
  Example:
  
  $90,000 (developer's value) x 1.25% = $1,125
  
  $1,125 / 12 = $93.75 per month
  
  
• 3). Multiply the number of months being charged to you at closing. This is usually a pro-rated amount depending on what month of the year you purchase the property. Review your estimated closing statement (HUD-1) and find the "pro-rated" number of months that you will be responsible for paying.
  
  Example:
  
  6 (pro-rated months) x $93.75 = $562.50 amount due at closing
  
  

After Closing

• 1). Gather your purchase contract and locate the purchase price. This is the final agreed upon amount to purchase the home and transfer ownership. The actual property tax amount is based on the purchase price along with other services provided by the county.
  
  
• 2). Review your closing statement to confirm the purchase price. The purchase can change from when the contract was written to when you close the transaction. The final closing statement (HUD-1) will have the final and agreed upon purchase price.
  
  
• 3). Calculate your anticipated property taxes by dividing the actual purchase price by 1.25 percent. Divide the results by 12 to determine your future monthly tax amount.