Delaware does have property tax, but the rate is lower than most states and the system works differently depending on where you live
Delaware charges property tax on real estate, but the state itself does not collect it. Instead, each county and municipality sets and collects its own property tax rate. This means your property tax bill depends on which county you live in and which local taxing district you belong to. The statewide average effective property tax rate is around 0.57% of home value, which ranks among the lowest in the nation. However, some counties and municipalities charge more or less than this average.
Your property tax bill in Delaware goes to your county government and your municipality or school district, not to the state. This is why two homes worth the same amount in different parts of Delaware can have very different tax bills. Understanding which county you are in and what local rates explore is the first step to knowing what you will owe.
Key Takeaways
- Delaware has property tax, but rates vary by county and municipality because the state does not set a uniform rate.
- Your property tax bill funds county government, your municipality, and your school district—not the state government.
- Delaware's average effective property tax rate of around 0.57% is lower than the national average, making it one of the more affordable states for property owners.
- You can find your specific tax rate by contacting your county assessor's office or checking your property assessment notice.
- Homeowners may be may have access to to property tax exemptions or deferrals depending on age, disability status, or military service.
How Delaware property tax rates are set and collected
Each of Delaware's three counties—New Castle, Kent, and Sussex—has its own assessment office and tax collection system. Within each county, municipalities and school districts also levy their own property taxes. When you own property in Delaware, you receive a bill that combines the county rate, the municipal rate (if applicable), and the school district rate. The total is what you owe each year.
Property taxes are assessed based on the assessed value of your home, not its market value. The county assessor determines the assessed value, which is typically a percentage of what your home would sell for. This percentage varies by county. Once the assessed value is set, the local tax rate (expressed as a percentage or per $100 of assessed value) is applied to calculate your bill.
Property tax bills in Delaware are usually due in two installments: one in May and one in November. If you have a mortgage, your lender may require you to pay property taxes through an escrow account as part of your monthly payment. Contact your county tax assessor's office if you are unsure when your bill is due or how to pay it.
Property tax rates by county
New Castle County, which includes Wilmington and the northern part of the state, has a combined county and municipal property tax rate that varies by municipality. Some areas in New Castle County have higher rates than others because municipalities set their own levies on top of the county rate.
Kent County, in central Delaware, and Sussex County, in the southern part of the state, generally have lower combined rates than New Castle County. However, rates within each county still vary depending on which municipality and school district your property falls under. A property in one Sussex municipality may have a different total tax rate than a property in another Sussex municipality a few miles away.
The best way to find your exact rate is to contact your county assessor's office directly. They can tell you the current rate for your specific address and explain how it breaks down between county, municipal, and school district portions. You can also check your property assessment notice, which lists the assessed value and the rate applied to it.
What homeowners pay property tax on in Delaware
In Delaware, property tax applies to real property—land and buildings. This includes your primary residence, rental properties, vacant land, and commercial buildings. The tax is based on the assessed value of the property as of a specific date each year, usually January 1st.
Delaware does not tax personal property such as vehicles, furniture, or equipment in most cases. However, some counties may tax certain types of business personal property. If you own a business or rental property, ask your county assessor whether personal property tax applies to your situation.
Improvements you make to your home, such as adding a room or a deck, may increase the assessed value and therefore your property tax bill. The county assessor typically reassesses properties after major improvements. You have the right to challenge an assessment if you believe it is incorrect—your county assessor's office can explain the appeal process.
Property tax exemptions and deferrals available in Delaware
Delaware offers several property tax exemptions and deferrals for homeowners who meet specific criteria. The most common is the homestead property tax exemption, which reduces the assessed value of your primary residence if you meet income and age requirements. may be able to access and the amount of the exemption vary by county, so contact your county assessor to learn whether you may have access to.
Disabled homeowners and veterans may also be may have access to to exemptions or deferrals. Delaware offers a property tax deferral program for homeowners age 65 or older with limited income. Under this program, you can defer paying property taxes, and the state places a lien on your property. The taxes become due when you sell the property or when the property passes to your heirs. This option allows you to stay in your home without paying property taxes during your lifetime, but it does create a debt against the property.
To learn about exemptions and deferrals you may may have access to for, contact your county assessor's office or visit the Delaware Department of Finance website. Each county administers these programs, so the rules and process process may differ slightly depending on where you live.
How property tax assessments work in Delaware
The county assessor's office determines the assessed value of your property, which is the basis for your property tax bill. Assessors use sales data from comparable properties, the condition of your home, improvements you have made, and other factors to set the assessed value. In most Delaware counties, properties are reassessed every few years, though some counties reassess annually.
You will receive a property assessment notice in the mail that shows the assessed value the assessor has assigned to your property. This notice also explains how to appeal the assessment if you believe it is too high. You typically have a limited window—often 30 to 60 days—to file an appeal after receiving the notice.
If you believe your assessment is incorrect, you can file a written appeal with your county assessor's office. You may need to provide evidence such as recent appraisals, sales prices of similar homes in your area, or documentation of property damage or needed repairs. The assessor will review your appeal and may adjust the assessment. If you disagree with the result, you may have the right to appeal to a county board or court, depending on your county's rules.
Comparing Delaware property tax to other states
Delaware's average effective property tax rate of around 0.57% is significantly lower than the national average of approximately 0.84%. This makes Delaware one of the more affordable states for property owners in terms of property tax burden. However, this comparison is based on average rates; your individual bill depends on your county and municipality.
States with higher property tax rates include New Jersey, Illinois, and Connecticut, where effective rates exceed 2%. States with lower rates than Delaware include Hawaii, Alabama, and Louisiana. If you are moving to Delaware from another state, your property tax bill may be lower even if your home is worth more, depending on where you are moving from.
Keep in mind that property tax is only one part of your total tax burden. Delaware has no sales tax on most purchases, which is a significant advantage compared to other states. Delaware also has a state income tax, but the rates are moderate. When comparing the total cost of living in Delaware to other states, consider property tax, income tax, and sales tax together.
Frequently Asked Questions
What happens if I do not pay my property tax bill in Delaware?
If you do not pay your property tax bill by the due date, you will owe a penalty and interest. The amount varies by county. If taxes remain unpaid for an extended period, the county may place a lien on your property or foreclose on it to recover the unpaid taxes. Contact your county tax collector when ready if you are unable to pay to discuss payment options or hardship programs that may be available.
Can I deduct Delaware property taxes on my federal income tax return?
Yes, you can deduct state and local property taxes on your federal income tax return, but only up to $10,000 per year under current federal tax law. This limit applies to the combined total of property taxes, state income taxes, and sales taxes. Consult a tax professional to understand how this deduction applies to your specific situation.
How often does the county reassess property values in Delaware?
Reassessment schedules vary by county. Some Delaware counties reassess properties annually, while others reassess every three to five years. Check with your county assessor's office to learn the reassessment schedule for your area and when your property will next be reassessed.
Do I have to pay property tax on a mobile home or manufactured home in Delaware?
Property tax on mobile homes and manufactured homes depends on whether they are classified as real property or personal property in your county. In most cases, if the mobile home is permanently affixed to land you own, it is taxed as real property. Contact your county assessor to learn how mobile homes are taxed in your area.
What is the difference between assessed value and market value in Delaware?
Market value is what your home would sell for on the open market. Assessed value is the value the county assessor assigns for property tax purposes, which is typically a percentage of market value. The percentage varies by county and is set by state law. Your property tax is calculated based on assessed value, not market value, which is why two homes worth the same amount may have different tax bills.