What is the Delaware real estate transfer tax rate?

Delaware's realty transfer tax is 4% of the sale price in jurisdictions that levy the local 1.5% portion: 2.5% goes to the state and 1.5% to the county or municipality. In areas with no local transfer tax, the state rate is 2.5% and the total is 2.5%. This is one of the higher transfer taxes in the United States, so it is a significant closing cost on Delaware home sales.

Who pays the transfer tax in Delaware, buyer or seller?

By long-standing custom in Delaware, the buyer and seller split the realty transfer tax 50/50, so each typically pays 2% of the price when the total rate is 4%. This split is customary, not mandatory, and can be negotiated in the contract. The calculator defaults to a 50/50 split but lets you change it.

Is there a first-time homebuyer discount on Delaware transfer tax?

Yes. Qualified first-time Delaware homebuyers receive a reduction of 0.5% of the transfer tax on the first $400,000 of the purchase price, applied to the buyer's portion. On a $400,000 home that saves the buyer up to $2,000. The buyer must meet the state's first-time buyer definition and complete the required affidavit at closing.

How is the Delaware transfer tax calculated?

Multiply the sale price by the total rate (4% or 2.5%) to get the full tax, then split it between buyer and seller per your agreement. If the buyer qualifies as a first-time homebuyer, subtract 0.5% of the lesser of the price or $400,000 from the buyer's share. The result is the cash each side owes at closing.

Are any Delaware property transfers exempt from the tax?

Yes. Transfers between spouses, certain transfers to or from government bodies, gifts with no consideration, and some intra-family or corporate reorganization transfers may be exempt or partially exempt. Refinances without a change of ownership are not subject to the realty transfer tax. Confirm exemptions with your title agent or the Delaware Division of Revenue.

Delaware Real Estate Transfer Tax Calculator

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Delaware has one of the highest real estate transfer taxes in the country. The total realty transfer tax is 4% of the sale price where the local 1.5% county or municipal portion applies (2.5% state + 1.5% local); in areas with no local tax the rate is 2.5% state-only. By custom the buyer and seller split it 50/50, and qualified first-time buyers get a 0.5% reduction on the first $400,000. This calculator computes each side’s share.

How it works

The tax is a straight percentage of the consideration, split per the contract:

Total tax = Sale price × total rate (4% or 2.5%) Each side’s share = Total tax × their split percentage First-time buyer reduction = 0.5% × min(price, $400,000) — subtracted from the buyer’s share

The first-time homebuyer reduction lowers only the buyer’s half and is capped because it applies to the first $400,000 of price. The seller’s share is unaffected by the buyer’s first-time status.

Delaware transfer tax rules explained

The state portion is 2.5%; the county/municipal portion is up to 1.5%, making 4% total where local tax applies.
Buyer and seller customarily split 50/50 — negotiable in the purchase contract.
First-time buyers save 0.5% on the first $400,000 (up to $2,000) on their share.
Refinances with no change of ownership are not subject to the tax.

Worked example

A $400,000 home in a jurisdiction with the full 4% rate, split 50/50, buyer is a first-time homebuyer:

Total tax = $400,000 × 4% = $16,000
Each side at 50% = $8,000
First-time buyer reduction = 0.5% × $400,000 = $2,000
Buyer pays $8,000 − $2,000 = $6,000; seller pays $8,000

Note: This is an estimate for guidance only. Delaware’s realty transfer tax is 4% where the local 1.5% applies and 2.5% state-only elsewhere; the split is customary and negotiable. Verify your exact local rate, exemptions, and first-time buyer eligibility with your title agent and the Delaware Division of Revenue.