Delaware Real Estate Transfer Tax Guide for Buyers and Sellers

Whether you're buying or selling a home in Delaware, understanding the real estate transfer tax can help you better prepare for closing and avoid unexpected surprises.

One of the most common questions we hear is, "Who pays the Delaware real estate transfer tax?" While there are general customs, the answer ultimately depends on the terms negotiated between the buyer and seller.

What Is Delaware Real Estate Transfer Tax?

Delaware charges a real estate transfer tax whenever ownership of real property changes. In most residential transactions, the combined transfer tax is 4% of the purchase price.

Who Typically Pays the Transfer Tax?

Although the transfer tax is commonly split equally between the buyer and seller, the allocation is negotiable and should be clearly outlined in the Agreement of Sale.

Depending on the negotiations, a buyer may agree to pay a portion—or even all—of the seller's transfer tax. This reduces the seller's closing costs, increases the seller's estimated net proceeds, and can make an offer more attractive when multiple offers are being considered.

What Buyers Should Know

Transfer tax is one of several closing costs buyers should budget for when purchasing a home. Eligible first-time homebuyers may qualify for a reduction in their portion of the transfer tax; however, not every municipality participates in the local portion of that reduction.

If you're preparing to purchase a home, visit our Buyers Get Started page to learn more about the buying process.

What Sellers Should Know

When reviewing offers, it's important to look beyond the purchase price. A buyer who agrees to pay some or all of the seller's transfer tax may increase the seller's net proceeds, making one offer more favorable than another.

If you're thinking about selling, start by requesting your free personalized home value before determining your asking price.

You may also find our article, Common Mistakes Delaware Home Sellers Make, helpful before putting your home on the market.

Need More Information?

For official information regarding Delaware real estate transfer tax, exemptions, and first-time homebuyer reductions, visit the Delaware Division of Revenue.