Prorations on a Richmond Closing Statement: Real Estate Tax, HOA Dues and Who Owes Whom

Two sellers close on the same day, October 1, 2026. One lives in Henrico County and gives the buyer a tax credit at settlement. The other lives in the City of Richmond and receives one. Same calendar, opposite direction, because the two localities collect real estate tax on different schedules. Here is the math first, then how it works.

Worked example: one closing date, two localities, opposite credits

Both examples use the August 2026 locality-wide median single-family sale price as a stand-in for the assessed value (your actual bill is based on the assessment, not your sale price) and a 365-day year. The seller is treated as owning January 1 through September 30, which is 273 days.

In Henrico, the December 5 bill is still unpaid at closing, so the buyer will pay it in full. The seller owes part of it for July through September, so the seller credits the buyer the difference between the seller’s share and the $1,763.75 already paid. In the City, the June 14 installment has already been paid, which covers the rest of the year, so the buyer reimburses the seller for October through December.

The Henrico rate comes from the county’s approved tax rates and schedule page, which lists $0.83 per $100 of assessed value, and the June 5 and December 5 due dates are from the county’s real estate assessment division. The City rate and its January 14 and June 14 due dates are from the City of Richmond Department of Finance real estate page. For every locality’s current rate side by side, see real estate tax rates across the Richmond metro in 2026.

How prorations work at settlement

A proration splits a recurring cost by the days each party owns the house. The settlement agent works out each side’s share of the bill, compares it with what has actually been paid, and posts the difference as a credit on the closing statement. Nobody writes a separate check to the other party; the credit simply raises or lowers the cash each side brings or receives.

Three details change the result slightly. First, whether closing day belongs to the buyer or the seller is set by the contract and the settlement agent’s practice. Second, some agents prorate the annual tax over 365 days, as above, while others prorate a single installment over the days that installment covers, which can shift the answer by a few dollars. Third, if the locality has not yet set a new rate or issued a new bill, the proration is usually based on the most recent bill. Your Richmond closing costs guide shows where these lines sit among the other charges.

Paid ahead or in arrears: the question that decides the direction

The rule is simple once you know the local calendar. If the seller has already paid a bill that covers days after closing, the buyer credits the seller. If a bill covering the seller’s days has not come due yet, the seller credits the buyer. Here are the real estate tax installment dates each locality publishes:

Dates come from each locality’s treasurer or finance office as published in September 2026; when a date falls on a weekend, it generally moves to the next business day. Which months each installment pays for is set by local ordinance, so let the settlement agent confirm the coverage period rather than assuming. Closing in the window between the two due dates is where sellers are most often surprised, especially in Hanover, where the second half comes due in October, and in the City, where the whole year is paid by mid-June.

Some properties carry more than the base rate. Special service districts and assessments can add lines to a tax bill and are prorated the same way; see service districts and special assessments on Richmond-area tax bills.

HOA and condo dues: the same math on a different calendar

Association dues are prorated like taxes, but on the association’s billing cycle, which may be monthly, quarterly or annual. Say a townhome community in Short Pump bills $600 a year each January, and you close October 1. You paid for October through December, so the buyer credits you 92/365 of $600, or $151.23. A condo in Scotts Addition that bills monthly usually produces a much smaller proration, often just a partial month.

The settlement agent gets these numbers from the association’s resale certificate. Under Code of Virginia 55.1-2310, that certificate must state the amount and payment schedule of assessments, any unpaid assessments currently due, other fees owed by the unit owner, any approved special assessments, and approved capital expenditures. Read it early; an unpaid special assessment comes out of your proceeds unless the contract says otherwise.

Two HOA charges are not prorated at all. A capital contribution or transfer fee is a one-time charge at resale, and who pays it depends on the governing documents and your contract. The same goes for a fee to prepare the resale certificate. If the buyer asked you to cover one of these, it may be written as a credit instead; our guide to seller concessions in Richmond explains how those are negotiated.

Utilities and stormwater: final bills, not prorations

Metered utilities are usually settled outside the proration section. You schedule a final read for closing day and pay the final bill directly. In the City, the Department of Public Utilities sends one City of Richmond utility bill covering water, wastewater, stormwater and natural gas, so a single final bill often closes out all four. County water and sewer customers deal with their county utility department.

Stormwater charges deserve a second look because they show up in different places. On a City utility bill, the stormwater charge is settled with the final bill. Chesterfield bills developed properties an annual stormwater utility fee, and an annual charge like that may be prorated if it has been paid ahead. Ask your settlement agent which lines are on your statement and why.

What does not get prorated

• Personal property tax. In Virginia this is the tax on vehicles and similar property (Henrico’s rate page lists it separately from real estate). It follows the car, not the house, so it does not appear on your closing statement.
• Your mortgage. The loan is paid off, not split; accrued interest is part of the payoff. Our guide to your mortgage payoff at a Richmond closing covers the per diem math.
• Homeowners insurance. You cancel your policy after closing and the insurer refunds unearned premium to you.
• Fuel left in a tank. Heating oil or propane is credited only if your contract says so.

Reading the proration lines on your statement

On the seller side, look for lines labeled with the locality, the item and the date range, such as “County taxes 07/01/26 to 09/30/26,” shown as a debit to you if you owe the buyer, or “City taxes 10/01/26 to 12/31/26” as a credit to you if the buyer owes you. The deed taxes sit elsewhere on the statement; see Virginia grantor tax and recordation fees. For a full seller budget, including commissions and repairs, read how much it costs to sell a house in Richmond in 2026, and for what happens at the table itself, our step-by-step Richmond closing walkthrough.

The same principles apply in Midlothian, Hanover or anywhere else in the region; only the calendar and the rate change. If you want to see what similar homes have actually sold for before you run these numbers, browse our recently sold properties, or read how we handle a sale from pricing through settlement on our seller services page.

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