DE · #45 by population

Buying a home in Delaware

Costs and rules that are specific to Delaware. Main city: Wilmington.

In short

Delaware taxes property sales through its realty transfer tax, requires an attorney to close and requires a seller disclosure form. It forecloses through the courts and is not a community property state. Deadline to appeal a property tax assessment: written notice before March 15; if you lose, appeal to Superior Court within 30 days of the postmark of the decision notice.

Calculate for Delaware

If you buy

Delaware state transfer tax

Realty transfer tax: State 2.5% of value (3% by statute, reduced to 2.5% when the local government levies the full 1.5%); combined 4.0% with a full local tax. Change the price: the amount is recalculated instantly.

Price$371,600
State transfer tax$9,290
Share of the price2.5% of the price
Who paysShared by buyer and seller

Default price: the Delaware median value of owner-occupied homes, $371,600 (Census ACS 2024). Rule: State share is 2.5% of the greater of consideration or highest assessed value, when the full 1.5% local tax is in place. The statute sets 3% otherwise. The first-time buyer credit is not included. Who pays: The state tax is apportioned equally between grantor and grantee; absent agreement the burden between the parties is on the grantor (30 Del. C. 5412). The contract usually settles it. Not included: county and city transfer taxes, recording fees, title insurance and lender charges. Delaware transfer tax guide · all 50 states.

If you sell

Capital gain and the federal tax on it

Same federal rule in every state: Section 121 of the Internal Revenue Code excludes up to $250,000 of gain on a main home ($500,000 for a married couple filing jointly).

Capital gain$350,000
Section 121 exclusion$250,000 (limit $250,000)
Taxable gain$100,000
Type of gainLong-term (owned over 1 year), 15% chosen
Federal tax on the gain$15,000

Section 121 excludes $250,000; the rest is taxable.

Gain = sale price minus your adjusted basis (purchase price, buying costs and improvements); selling expenses reduce it (IRS Publication 523). Long-term rates for sales in 2026, by taxable income including the gain (IRS Rev. Proc. 2025-32, section 4.03): 0% up to $49,450 single or $98,900 married filing jointly, 15% up to $545,500 single or $613,700 jointly, 20% above. Not included: Delaware state income tax on the gain (not computed), the net investment income tax, depreciation recapture on a rental or home office, and the reduced exclusion for an early sale. Agent commissions are negotiated and never set by law. Capital gains on a home sale.

Delaware in short

Is there a real estate transfer tax in Delaware?

Delaware's realty transfer tax totals 4% of the price on the state return: 2.5% to the state and 1.5% to the county or municipality. The state tax is apportioned equally between buyer and seller, and a first-time buyer can cut the buyer's share by up to $2,000.

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How much is the state transfer tax on a $371,600 home in Delaware?

On $371,600, the median value of owner-occupied homes in Delaware (Census ACS 2024), the state realty transfer tax comes to $9,290 (State 2.5% of value (3% by statute, reduced to 2.5% when the local government levies the full 1.5%)). County and city taxes are not included.

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What closing costs does Delaware law set?

Delaware has no official typical closing-cost total. The realty transfer tax is 4% of the price (2.5% state plus 1.5% county or municipal), with the state share apportioned equally between buyer and seller, and each recorded document carries $30 in state add-ons.

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How is property tax calculated in Delaware?

Delaware property tax has county, school district and, inside a city, municipal layers, assessed at fair market value as of the most recent county reassessment base year (reassessed at least every five years).

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What is the deadline to appeal a property tax assessment in Delaware?

In New Castle County, Delaware, file a written assessment appeal with the Board of Assessment Review before March 15 (9 Del. C. 8311), and if the Board rules against you, appeal to Superior Court within 30 days of the postmark of its decision.

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Do you need a real estate attorney to close in Delaware?

Yes. In Matter of Mid-Atlantic Settlement Services (Del. 2000), the Delaware Supreme Court held that a Delaware-licensed attorney must conduct the closing of a sale or refinance of Delaware real property.

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What must a home seller disclose in Delaware?

A Delaware seller of a one- to four-family home must disclose all known material defects in writing before signing the listing agreement (6 Del. C. 2572). The seller must give the buyer the Real Estate Commission's condition report before the buyer makes an offer, plus a separate radon disclosure.

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How does foreclosure work in Delaware?

Delaware forecloses through the courts by a scire facias action, and for an owner-occupied home the lender must send a notice of intent to foreclose 45 days before filing. The owner is offered mediation 45 to 75 days after service, and the home is then sold at a sheriff's sale.

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What first-time home buyer programs does Delaware offer?

In Delaware, the Delaware State Housing Authority (DSHA) runs the Delaware Mortgage Program: 30-year fixed-rate loans paired with a zero-interest second mortgage of 3%, 4% or 5% of the first loan for down payment and closing costs.

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How much tax when you sell a home in Delaware?

The federal rule is the same in Delaware as in every state: if you owned and lived in the home as your main home for at least 2 of the last 5 years, the first $250,000 of gain is excluded, $500,000 for a married couple filing jointly (Section 121, IRS Publication 523). Bought $400,000, sold $750,000: a single owner has $100,000 of taxable gain, $15,000 of federal tax at the 15% long-term rate; a couple filing jointly owes nothing. Delaware income tax on the gain is not computed here.

Capital gains on a home sale

Delaware guides

Wilmington

Buying a home in Wilmington, Delaware

Professionals in Delaware

All states · Federal guides