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365-day method
The 365-day method is a way of calculating prorations using the actual number of days in the year and the actual days in each month. The annual amount is divided by 365, or 366 in a leap year, to get a daily rate, which is then multiplied by the exact number of days owed. It is more precise than the 30-day month, or statutory year, method, which assumes 360 days.
- Exam tip
- Read the question to see which method is required; the 365-day and 360-day methods give slightly different answers.
- Example
- Annual taxes of $3,650 give a daily rate of $10; for 73 days owed, the proration is $730.
Related terms & state variants
Sources
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Last verified: 2026-10-23