Property Tax & Utility Prorations

This means each party pays their fair share based on the portion of the year they owned the property. This also applies to HOA dues and public utility services (usually properties with public sewer and water that are provided by the local municipality).

Pennsylvania property taxes are typically divided into two main categories:

County and Municipal Real Estate Taxes

• Often billed annually or semi-annually, depending on the municipality
• In Bucks County, these are commonly billed once per year

School District Taxes

• Typically billed annually in the summer (often July 1)
• Discount periods are usually available if paid early
• Face and penalty periods follow if not paid within set timeframes

These tax cycles are established at the local level and are consistent across most Pennsylvania municipalities and school districts.

At settlement, taxes are adjusted so that:

• The seller pays for the portion of the year they owned the home
• The buyer assumes responsibility from the day of closing forward

Why Timing Matters More Than Most Sellers Expect

The timing of your closing relative to tax billing cycles can directly impact your net proceeds.

For example:

• Closing shortly before a major tax bill is due may result in a larger debit at settlement
• Closing shortly after paying taxes may result in a credit back to you

Because school taxes in Bucks County are often one of the largest annual expenses, their timing can significantly influence the final settlement figures.