How Will Property Taxes Be Handled at Closing?
Understanding Property Tax Prorations
Property tax prorations confuse many San Marcos sellers. As a 23-year veteran real estate agent with HomeSmart Stars, I ensure my clients understand exactly what they'll pay in taxes at closing.
How Prorations Work
In the San Marcos TX real estate 2026 market, property taxes are divided between buyer and seller based on the closing date. You pay taxes for every day you owned the property. The buyer pays from closing day forward. This happens whether taxes are currently paid or not.
As a Realtor at HomeSmart Stars with over 1,561 team sales homes sold, I've explained thousands of tax proration calculations to San Marcos real estate sellers.
Hays County Tax Timeline
Hays County tax bills are issued in October and due by January 31st of the following year. They cover the previous calendar year. If you close in March and haven't paid last October's bill, you'll owe the entire amount at closing, with the buyer receiving a credit for their future portion.
When selling San Marcos TX homes for sale in September before bills are issued, the title company estimates taxes based on last year's amount. You pay your prorated share, and the buyer assumes responsibility when the bill arrives.
Homestead Cap Impact
Your homestead exemption ends when you sell your San Marcos home for sale. Don't be surprised if your prorated amount doesn't reflect your exempted rate—the calculation uses the full assessed value.
One seller shared: "Bob warned us about the homestead cap expiring at sale. We budgeted for the higher proration amount and weren't caught off guard at closing on our San Marcos property."
Multiple Taxing Entities
San Marcos properties are taxed by multiple entities including City of San Marcos, Hays County, San Marcos CISD or Hays CISD, and various MUD or special districts. Each entity's portion is prorated separately on your closing statement.
Pending Tax Protests
If you've protested your San Marcos real estate taxes and the case is pending at closing, title companies require either resolution or agreement on how to handle potential refunds or additional charges. This can complicate closings.
Understanding home values in San Marcos TX includes knowing your exact tax obligations at closing. Whether in San Marcos CISD, Hays CISD, or anywhere in Hays County, I provide accurate tax calculations.
With 45 Google 5-star reviews, sellers trust Bob McCranie real estate for transparent tax proration explanations.
Contact Bob McCranie at HomeSmart Stars | 972-754-0582 | www.AustinBestAgent.com for a FREE 2025 Market Strategy Session