Property Tax Surprises There are two ways property taxes can surprise you on your closing date. 1) The seller may have already paid property taxes for the full year, and as such is entitled to a credit for their unused portion. We call these prepaid property taxes. Suppose your annual taxes are $7,200 and your seller prepaid the full year. With a closing date of August 13, you need to give back 140 days worth of taxes. That’s just over $2,760. 2) The other way property taxes can surprise you is when your mortgage lender is going to take a fixed amount for property taxes from your bank…