The Short Answer

Delaware Transfer Tax — Who Pays and How Much?

Delaware's transfer tax is 4% of the sale price, split equally — 2% from the buyer and 2% from the seller — unless negotiated otherwise.

On the state's median home price of $396,207, that's roughly $7,900 each side. Most transactions in Sussex County also carry a local municipal transfer tax, though the state reduces its share to keep the total capped at 4%. First-time buyers can trim their share by 0.5% — up to $2,000 in savings — on the first $400,000 of purchase price.

Delaware transfer tax rate structure diagram
How It Works

How Delaware's Transfer Tax Is Structured

The state sets the base rate; municipalities can layer on top — but the total is capped.

Delaware Code establishes a $4.00 per $100 of sale price (4%) transfer tax on all real estate transactions. By default that's split 2% seller / 2% buyer, though buyer and seller can agree to a different split in the purchase contract.

When a municipality charges a local transfer tax that exceeds 1%, Delaware reduces the state's share from 2.5% to 2% so the combined total stays at 4%. In areas with no local tax, buyers and sellers each pay the full 3% state rate.

  • State base rate: $4.00 per $100 (4%) of sale price
  • Default split: 2% seller / 2% buyer
  • Local municipal tax (most of Sussex County): 1.5% additional
  • When local tax exceeds 1%: state share drops to 2%, keeping total at 4%
  • No local tax areas: full 3% state rate applies to each side
By The Numbers

What Transfer Tax Actually Costs in Delaware

Based on the state median home price of $396,207 (Delaware Association of REALTORS®)

0 Seller's Share (2%) At $396,207 median price
0 Buyer's Share (2%) At $396,207 median price
0 Max FTB Savings First-time buyer exemption
0 Total Rate (Capped) Delaware Division of Revenue
County by County

How Transfer Tax Varies Across Delaware

State law caps the combined rate at 4%, but how it's distributed depends on where you buy.

Sussex County

Most municipalities charge 1.5% local tax. With local tax over 1%, state share drops to 2%. Combined total: 4% (2% each side). Recording fees: $30 surcharge + $9/page + $1 maintenance fee.

New Castle County

Higher-density municipalities may charge local transfer tax. Recording fees: $30 base + $13/page. Wilmington and other cities can have additional transfer taxes layered in.

Kent County

Rural areas with no local tax pay the full 3% state rate per side. Recording fees: $36 base + $10/page + $5/tax parcel. Dover and other incorporated towns may levy local rates.
First-Time Buyers

The First-Time Buyer Transfer Tax Exemption

Delaware gives first-time buyers a meaningful break at closing — applied directly to the transfer tax bill.

First-time buyers receive a 0.5% reduction on the state portion of transfer tax, applied to the first $400,000 of purchase price. At the maximum, this saves $2,000 at closing — real money that can go toward moving costs, repairs, or early mortgage payments.

Example: On a $350,000 purchase, a qualified first-time buyer saves $1,750 at closing. On a $500,000 purchase, the exemption still caps at $2,000 (calculated on the first $400,000 only).

  • 0.5% reduction applied to state transfer tax portion only
  • Applies to the first $400,000 of purchase price
  • Maximum savings: $2,000
  • $350,000 purchase → $1,750 savings at closing
  • Must be a first-time buyer (no ownership in prior 3 years)
First-time buyer transfer tax savings in Delaware
Common Questions

Delaware Transfer Tax FAQ

Yes. The default split is 50/50, but buyers and sellers can agree to any allocation within the purchase contract. In a buyer's market, sellers sometimes agree to cover a larger portion as a concession.
No. Delaware transfer tax is NOT deductible from annual income taxes. However, sellers may include it in the property's cost basis for capital gains purposes, which can reduce the taxable gain when the property is sold.
Yes. Transfers between spouses are exempt. Transfers between parent and child are also exempt. Certain estate transfers and gifts may qualify for exemptions — consult a Delaware real estate attorney for your specific situation.
No. Delaware does not have a mortgage recording tax, unlike some other states. This is one advantage of buying in Delaware versus neighboring states.
Sussex County recording fees: $30 document surcharge + $9 per page + $1 maintenance fee. These are separate from transfer tax and are typically paid at closing as part of the overall closing costs.
Transfer tax is collected at closing (settlement) and disbursed by the closing attorney. It is paid before the deed is recorded with the county. You will see it as a line item on your closing disclosure.
Calculate Your Costs

Tools to Estimate Your Delaware Closing Costs

Seller Net Sheet Calculator

See every line item that comes out of your proceeds — transfer tax, commission, attorney fees, and more — calculated for your estimated sale price.
Open Net Sheet →

Free Home Valuation

Before calculating your transfer tax, you need to know what your home is worth. Get an instant estimate powered by local sales data.
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Buyer Closing Cost Guide

Transfer tax is just one piece. See the full picture of what buyers pay at closing in Delaware — from appraisal to title insurance.
See Buyer Costs →
Work With TPG

Know Exactly What You'll Pay Before You Close

A TPG agent will walk you through your personalized closing cost estimate — transfer tax, commission at 3.5%, attorney fees, and all other line items — before you list or make an offer.