Should you close on a house in December or January? Close in December if you'll itemize deductions for 2026 and want this year's tax benefits; otherwise, choose the date that best fits your move, your rate lock and your cash. A December closing can let you deduct qualifying points, your share of property taxes, and the mortgage interest you pay this year on your 2026 return.
The catch: those deductions only help if your itemized total beats the 2026 standard deduction: $32,200 for married couples filing jointly and $16,100 for single filers, per the IRS. Many buyers won't clear that bar in a partial year, so for them, timing is more about logistics than taxes.
Data note: Tax rules are from IRS Publications 530 and 936, IRS news release IR-2025-102 (2026 inflation adjustments) and the IRS correction on the 2026 state and local tax limit. Arizona property tax dates are from A.R.S. 42-18052 and the Maricopa County Treasurer. Rates are from Freddie Mac's PMMS, Nov. 12, 2026. Read November 13, 2026. Not tax advice; confirm with your CPA.
The Tax Case for December
Points. IRS Publication 936 lets you deduct the full amount of points in the year paid on a loan to buy your main home if you meet all of its tests and itemize. Close in December and that deduction lands on your 2026 return.
Property taxes. Per Publication 530, taxes are divided by days of ownership: the seller is treated as paying up to but not including the date of sale, and the buyer from the date of sale onward. Your share is deductible if you itemize.
Mortgage interest. Interest on up to $750,000 of acquisition debt ($375,000 if married filing separately) is deductible for loans taken out after Dec. 15, 2017. See our mortgage interest deduction guide.
State and local tax limit. For 2026, the IRS lists a $40,400 SALT limit ($20,200 married filing separately), reduced for modified AGI over $505,000, but not below $10,000.
When January Makes More Sense
- You'll take the standard deduction anyway: December offers little tax advantage
- Cash flow: a later closing gives you more time to gather funds and enjoy the holidays without moving boxes
- Next year's itemizing: if you expect to itemize in 2027 but not 2026, January points and interest may do more for you
- Inventory: with Scottsdale averaging 75 days on market in October 2026 (Phoenix REALTORS), January buyers still have room to negotiate
Arizona Property Tax Proration
Arizona bills property taxes in two halves: due Oct. 1 and March 1 (A.R.S. 42-18052). Taxes for 2026 aren't fully paid until the second half in spring 2027, so on a December closing:
- The seller typically credits the buyer for the seller's share of 2026 taxes not yet paid
- The buyer then pays the second half (directly or through escrow)
- Paying the full year by Dec. 31 waives interest on a late first half, per the Treasurer
For dates and delinquency rules, read when are property taxes due in Maricopa County.
Holiday Logistics in Arizona
- Target dates to avoid: Dec. 24, Dec. 25, Dec. 31 and Jan. 1; many offices close or run short-staffed
- Rate locks: Freddie Mac's survey had the 30-year fixed at 7.11% on Nov. 12, 2026; make sure your lock covers holiday delays
- Funding cutoffs: ask your lender and title company for their last funding and recording day of the year
- Utilities: City of Scottsdale offices close Dec. 25 and Jan. 1, so schedule service starts in advance
- Movers: book early; holiday weeks fill quickly
“Every December I hear, 'Should we push to close before New Year's for the taxes?' My answer is to ask your CPA one question first: will you itemize this year? If the answer is no, pick the date that makes your move easiest. If it's yes, I'll build the timeline backward from your title company's last funding day so nothing slips into January by accident.”
— Elizabeth Vijan, Tackett Team, eXp Realty
Frequently Asked Questions
Is it better to close on a house in December or January?
December helps if you itemize for 2026. If you take the standard deduction, choose the date that fits your move.
Are mortgage points deductible in the year you buy?
They can be, in full, if you meet the IRS Publication 936 tests and itemize.
How are property taxes split when you close in December in Arizona?
By days of ownership. A December buyer usually receives a seller credit for unpaid 2026 taxes.
Do title companies close between Christmas and New Year's?
Many do, but build in extra days and confirm funding cutoffs.
Buying or Selling Around the Holidays?
I'll coordinate with your lender, title company and CPA so your closing date works for your taxes and your calendar.
Elizabeth Vijan | Tackett Team, eXp Realty
Phoenix & Scottsdale Real Estate
Talk With Elizabeth · Call or text 602-885-7752
Sources: IRS Publication 530: Tax information for homeowners · IRS Publication 936: Home mortgage interest deduction · IRS: 2026 tax inflation adjustments (IR-2025-102) · IRS: 2026 state and local tax deduction limit · Maricopa County Treasurer: Property tax calendar · Phoenix REALTORS/ShowingTime: Scottsdale October 2026 (PDF) · Freddie Mac Primary Mortgage Market Survey · City of Scottsdale: Holiday schedule
Disclaimer: General information, not tax, legal or lending advice. Consult a CPA or tax professional about your situation. Information deemed reliable but not guaranteed. Equal Housing Opportunity.
Tackett Team, eXp Realty · Get in touch