In Hill County and Greater Waco, sellers are debited at closing for their share of the calendar-year property taxes based on days of ownership. The closing agent calculates a daily rate from the estimated annual tax bill, multiplies it by the seller's days of ownership, and shows it as a debit to the seller and a credit to the buyer on the settlement statement.
How are property taxes prorated for sellers at closing in Hill County and Greater Waco?
In Hill County and the Greater Waco area, sellers are responsible for property taxes from January 1 through the day before closing. The closing agent estimates the annual tax bill using the applicable local rates and the property's assessed value, divides it by 365 to get a daily rate, and multiplies that by the seller's days of ownership. The result appears as a debit to the seller and a credit to the buyer on the settlement statement. Because Texas taxes are paid in arrears, the buyer eventually pays the full bill and is reimbursed for the seller's portion through that closing credit.
Key Takeaways
- Texas property taxes are paid in arrears, so sellers owe a prorated share of the current year's taxes at closing even though the bill isn't due yet.
- The standard Texas calculation is: estimated annual tax bill divided by 365 equals the daily rate; daily rate multiplied by the seller's days of ownership equals the seller's tax debit.
- Hill County's most recently published (2025) county general fund no-new-revenue rate was approximately $0.340423 per $100 of valuation, with a separate road and bridge rate of about $0.059731 per $100.
- For a Waco-area property, 2025 tax-year rates from McLennan County (about $0.3398/$100), City of Waco ($0.755/$100), and Waco ISD (about $1.0266/$100) are layered together to estimate the annual bill used in the proration calculation.
- The proration is an estimate, not a final number. If 2026 rates or appraised values aren't finalized at closing, the closing agent typically uses the prior year's bill, and the buyer absorbs any difference when the actual bill arrives.
How does the proration calculation actually work in Hill County and Waco?
The math itself is straightforward. What makes it feel complicated is that multiple taxing entities each contribute their own per-$100 rate, and those rates stack on top of each other to produce the annual tax estimate the closing agent uses.
Step one: build the annual tax estimate
The closing agent pulls the property's assessed value from the county appraisal district, then applies the current (or most recently available) tax rates for every entity that taxes that parcel. The table below shows the 2025 figures for both Hill County and Greater Waco properties.
Taxing Entity (2025 Tax Year) | Rate per $100 Valuation | Source |
|---|---|---|
Hill County General Fund (no-new-revenue) | $0.340423 | Hill County Tax Office, 2025 |
Hill County Road and Bridge | $0.059731 | Hill County Tax Office, 2025 |
McLennan County | $0.3398 | McLennan County, 2025 |
City of Waco | $0.755 | Waco City Council, FY 2025-26 |
Waco ISD | $1.0266 | McLennan County, 2025 |
These are 2025 tax-year figures, the most recently published rates available as of September 10, 2026. Actual proration at your closing will use the rates in effect for the year of your closing. Source: Hill County Tax Office; Texas Comptroller Tax Rates and Levies.
In Hill County, the relevant entities are the county general fund, road and bridge, and potentially an emergency services district. In McLennan County and Waco, the closing agent layers the county rate, city rate, school district rate, and any applicable special district rates. The Texas Comptroller's Tax Rates and Levies tables are the authoritative cross-check title companies use to confirm school district and other taxing unit rates when bills haven't been issued yet.
Step two: calculate the daily rate and allocate days
Once the annual estimate is built, the closing agent divides it by 365 to get a daily rate. The seller's days of ownership run from January 1 through the day before closing; the buyer's days run from the closing date through December 31.
So if you close on June 30, 2026, your responsibility covers January 1 through June 29, 180 days. The buyer picks up June 30 through December 31. The closing agent multiplies the daily rate by your 180 days to arrive at your prorated share.
Step three: how it shows up on your settlement statement
Because Texas property taxes are paid in arrears, the current year's bill typically isn't due until October through January of the following year. That means your prorated share appears as a debit to you and a credit to the buyer on the closing statement. The buyer later pays the full bill when it arrives and is made whole by the credit they received at closing.
If you've already paid the full prior-year bill early, the math can flip: the buyer may owe you a reimbursement for the portion of the year they'll own the property. The direction of the credit depends entirely on whether taxes have been paid and for which period.
What sellers in Hill County and Greater Waco need to know before they list
The proration line item isn't something you can eliminate, but you can prepare for it so it doesn't catch you off guard at the closing table. Part of what I do with every seller before we list is run through this exact calculation using their property's assessed value and current local rates, so the tax line on the settlement statement isn't a surprise.
Your closing date changes your tax debit
A seller who closes in late January has accrued fewer days of ownership in the calendar year, so the tax debit is relatively small. A seller who closes in late November has accrued nearly a full year's worth of days and carries a correspondingly larger debit, even though the actual tax bill may not arrive for another month or two. It's worth having a conversation about how the timing of your closing affects your net before you set a target date.
The proration is an estimate, not a guarantee
If 2026 rates or appraised values aren't finalized at the time of your closing, the closing agent will typically use the prior year's bill or a preliminary estimate. In Texas, the buyer generally absorbs any difference between the estimated proration and the actual bill when it arrives. That's standard practice, but it's worth understanding so you know what the credit on the buyer's side is actually covering.
Review your exemptions before you list
Your prorated tax share is calculated on your property's assessed value, and that value can be significantly reduced if you carry a homestead exemption, an over-65 exemption, or a disability exemption. If you're selling a property in Hill County that also carries an agricultural exemption, the exemption's effect on the assessed value used in the proration estimate is worth confirming with the Hill County Tax Office before closing. Exemptions that expire or transfer at sale can change the picture.
Is the proration negotiable?
The tax rates themselves are set annually by local governing bodies and documented by the Hill County Tax Office and the Texas Comptroller. Those aren't negotiable between buyer and seller. But the convention of assigning responsibility through the day before closing (versus through the closing date itself) is a matter of contract language, not statute. If you anticipate a significant change in your property's assessed value or exemption status between the estimate used at closing and the actual bill, that's worth flagging to your agent so the contract language can address it.
What else appears alongside the tax proration on your closing statement
The prorated tax debit is one line item among several that make up a seller's closing costs. Other categories that typically appear on a Texas settlement statement include title insurance premiums, recording fees, and any escrow setup charges. The CFPB's homeownership resource center has a plain-language breakdown of how closing disclosures are structured if you want to understand the full document before you sit down to sign.
Prorated property taxes are one of those closing-cost line items that can genuinely affect your net if you're not expecting them, especially for a late-year closing in Hill County or Waco where the accumulated days add up fast. If you're thinking about selling, I'm happy to walk through your specific numbers before you list so the settlement statement doesn't hold any surprises. Schedule a consultation with WestLand Realty Group and we'll look at your tax history, your timeline, and what to expect at closing.
Equal Housing Opportunity. Katie Miller is a licensed Texas real estate agent regulated by the Texas Real Estate Commission (TREC); consumers may view the TREC Consumer Protection Notice and Information About Brokerage Services at TREC.texas.gov. This article is general information only, not legal, tax, or financial advice, and you should confirm your specific closing costs, tax obligations, and proration figures with your closing agent, tax advisor, or lender.
