Quick answer: In Missouri, a home buyer and seller typically divide annual real estate taxes through a credit at closing. The purchase contract controls the method. If the 2026 tax bill is not ready, the parties may use an estimate and agree whether to make an adjustment later.

Why fall 2026 matters

In the City of St. Louis, real estate tax notices are sent in November and taxes are due December 31. A home may therefore close before the final tax amount is known. Verify local procedures for other Missouri counties.

Who pays the property taxes?

Missouri Revised Statutes Section 137.075 uses January 1 as a key liability date. The Missouri State Tax Commission's 2026 Assessor Manual clarifies that real estate taxes run with the property and ordinary buyer-seller closing prorations are private agreements. The purchase contract therefore matters.

How are taxes prorated?

October 20 closing example

Assume estimated 2026 taxes of $3,600, with the buyer allocated the closing day. The seller's January 1 through October 19 period covers 292 of 365 days. That makes the seller's estimated share $2,880. The buyer's remaining 73 days account for $720. If taxes are unpaid, a typical closing credits the buyer $2,880; the buyer must still pay the full county bill when due.

What if the final bill increases?

If the actual tax bill is $3,960, the increase is $360. A contract that makes the proration final may leave the buyer paying that difference. Under a contractual reproration using the same dates, the seller's share becomes $3,168, or $288 more. The parties' agreement controls any subsequent payment.

Do not confuse these three items

A seller tax credit allocates unpaid taxes between buyer and seller. A mortgage escrow deposit reserves money for future payments. Delinquent prior-year taxes are separate obligations that can affect title.

Before you close

  • Verify the parcel and latest county tax bill.
  • Review the purchase contract's proration and adjustment language.
  • Confirm whether 2026 taxes are estimated or final.
  • Check new construction, reassessments and special assessments.
  • Know who pays the final tax bill.

Frequently asked questions

Does a seller tax credit pay the county?

No. It is a closing adjustment, not proof the county has been paid.

Are all Missouri tax prorations calculated the same way?

No. Contract terms, tax amounts and closing dates vary.

Can a buyer owe more after closing?

Yes, if the final bill increases or the parties' agreement assigns the difference to the buyer.

Get title work started

Title Resources Inc. provides Missouri title and closing services. Learn more about our Missouri services and title orders. Email orders@titleresourcesinc.com to order title work.

Sources: Missouri Revised Statutes Section 137.075; Missouri State Tax Commission Assessor Manual revised June 2026; City of St. Louis Collector of Revenue; Missouri State Auditor 2026 tax-rate resources.

General information, not legal or tax advice.