NMLS #2748687 · Company NMLS #2502308MBR
Short answer
At closing, the year's property tax is split between buyer and seller by the number of days each owns the home. If the seller already paid a bill that covers days after closing, the buyer credits the seller for those days. If a bill is still unpaid, the seller credits the buyer for the days the seller owned the home. The split shows up on your Closing Disclosure.
What tax year is being split?
New Hampshire's property tax year runs April 1 to March 31. Many towns bill twice: a first bill in late spring or summer that's an estimate based on the prior year, and a final bill late in the year once the state sets the new rate. Some towns bill quarterly. The proration works off whichever bills are paid or due when you close. See how NH towns bill property taxes.
What does that look like in practice?
Say you close in October and the seller has paid the first bill, but the final bill hasn't come out yet. The closing agent works out what the seller owes for April through the closing date, often using the prior year's rate as an estimate, and credits you that amount so you can pay the final bill. If the seller has paid ahead, you credit the seller instead. Your purchase contract sets how estimates are handled.
Where do I see it on my paperwork?
On the Closing Disclosure, look at the Summaries of Transactions: "Adjustments for items paid by seller in advance" shows what you reimburse the seller, and "Adjustments for items unpaid by seller" shows credits to you. Your escrow deposit for future tax bills is separate, under Initial Escrow Payment at Closing.
Do prorations change how much cash I need?
Yes, in either direction. A seller credit for unpaid taxes lowers what you bring; reimbursing a seller who paid ahead raises it. Ask for an estimate of both before you plan your cash. See NH closing costs.
What if the new rate comes out right after I close?
If the proration used an estimate and the real bill is higher, the contract decides whether there's any true-up. Without one, the difference usually falls on the buyer. Buying in the fall? See when NH towns get their 2026 rates.
Sources
- CFPB, Closing Disclosure explainer
- 12 CFR 1026.38(j)-(k), Closing Disclosure summaries of transactions
- NH RSA 76:15-a, Semiannual tax billing
Checked November 10, 2026. Rules and dates change, so confirm current details before you rely on them.
General information only, not tax or legal advice. Program availability, eligibility and terms vary by lender and are subject to change and to underwriting approval. Not a commitment to lend.