Delaware Closing Costs for Sellers in 2026: Transfer Tax, Fees and Real Numbers
Delaware's realty transfer tax is 4% where the full local 1.5% applies, split between a 2.5% state share and local share. See a $300,000 example.
Delaware’s realty transfer tax is 3% at the state level, dropping to 2.5% where a county or municipality has enacted the full 1.5% local rate, for a combined 4%. The statute apportions the tax equally between grantor and grantee. On a $300,000 sale at 4%, that is $12,000 total.
What a Delaware seller pays at closing
Delaware’s realty transfer tax is the largest government charge on most seller closings in the state. It has a state share and a local share, and the combined rate depends on whether the county or municipality has enacted the full local rate.
Under 30 Del. C. 5402, the state rate is 3% of the value of the property. If a municipality or county has enacted the full 1.5% realty transfer tax authorized under Title 22 or Title 9, the state share drops to 2.5%. The Delaware Division of Revenue instructions describe the same structure: 2.5% to the state and 1.5% to the county or municipality, for a total of 4.0%.
| Situation | State share | Local share | Combined |
|---|---|---|---|
| Full local rate enacted | 2.5% | 1.5% | 4.0% |
| No full local rate (state rate) | 3% | Not covered by this source | 3% at the state level |
Your title company can tell you which situation applies to your property’s location and whether any partial local rate exists. The sources used here do not list every county and municipality, so do not assume a rate from the city name alone.
Who pays
The statute states that the tax is apportioned equally between grantor and grantee. In practice, that makes a 50/50 split the starting point, though your purchase agreement is where you confirm the allocation. Ask your title company or closing attorney what is customary locally, since contract terms can differ from the default.
First-time buyers receive a reduction on their own portion: one half of one percent multiplied by the lesser of the property value or $400,000. It does not change the seller’s share. The statute also states that no tax is imposed on conveyances where the actual value of the property is less than $100.
A worked example on a hypothetical $300,000 sale
Take a hypothetical $300,000 sale in a place where the full local rate applies, so the combined rate is 4%.
- State share: 2.5% of $300,000 is $7,500.
- Local share: 1.5% of $300,000 is $4,500.
- Total: $12,000.
- Seller’s half under an equal split: $6,000.
If the full local rate did not apply and only the 3% state rate is in play, the total at the state level would be $9,000, with $4,500 for each side under an equal split.
| Scenario | Total | Seller half (equal split) |
|---|---|---|
| 4% combined | $12,000 | $6,000 |
| 3% state only | $9,000 | $4,500 |
A first-time buyer on the same $300,000 price would see a reduction on the buyer’s portion of 0.5% of $300,000, or $1,500. The seller’s $6,000 would not change.
The other seller costs
- Agent commission. Negotiable, and usually the largest cost on a listed sale.
- Mortgage payoff. Your remaining balance plus interest through the payoff date.
- Prorated property taxes. Settled as of the closing date under your contract. The tax proration calculator can estimate this.
- Title, settlement and recording fees. These vary by company. Ask for a written estimate. The sources used here do not state whether Delaware promulgates title insurance rates.
Why investors care
For a flipper, realty transfer tax shows up twice: once when you buy and again when you sell. On a hypothetical $240,000 purchase and $300,000 resale at a combined 4%, the tax is $9,600 plus $12,000, or $21,600, across the two deeds. If it is split equally on both, your share is $10,800. On a thin spread, that is the number that decides whether a deal clears.
The structure of a wholesale deal changes the count. An assignment moves the contract to your end buyer, so the closing runs between the original seller and that buyer. A double close means two closings and two sets of costs: you buy, then you resell, and each deed carries realty transfer tax on its own price, with two rounds of title and recording charges. On the same hypothetical prices, the double close carries $21,600 in transfer tax, compared with $12,000 on a single deed at the resale price. That is a real difference against a wholesale fee.
For your maximum allowable offer, work backward from the resale price. Subtract rehab, holding costs, the transfer tax on both deeds at the rate that applies to the property, both closings and your target profit. Ask your closing attorney how consideration is reported on each deed and who bears the tax in your contract.
Check your numbers
Confirm every figure with your title company or closing attorney, since local rates and contract terms vary. For a quick estimate, the closing cost calculator in Automize CRM lets you enter your own price and fees.
This is general information, not legal or tax advice.
Sources
- Delaware Code Title 30, Section 5402: Realty Transfer Tax
- Delaware Division of Revenue: Realty Transfer Tax instructions
Rates checked October 24, 2026. General information, not tax or legal advice.
Common questions
What is the Delaware realty transfer tax rate?
Under 30 Del. C. 5402, the state rate is 3% of the property value, or 2.5% where a county or municipality has enacted the full 1.5% local realty transfer tax. That makes a combined 4% in those places. The Division of Revenue instructions describe the same 2.5% state plus 1.5% local split.
Who pays the transfer tax in Delaware?
Section 5402 states the tax is apportioned equally between grantor and grantee. Many contracts follow that, but the purchase agreement is where you confirm it. Ask your title company or closing attorney what is customary locally, and check the clause before you set your net proceeds.
Is there a first-time homebuyer break on Delaware transfer tax?
Yes, on the buyer’s share only. The statute reduces a first-time buyer’s portion by one half of one percent multiplied by the lesser of the property value or $400,000. It does not reduce the seller’s share, so the seller’s math is unchanged.
Does a double close cost more in Delaware?
A double close records two deeds, so realty transfer tax is calculated on two prices, plus two sets of title and recording costs. At a combined 4%, that is a large line, so ask your closing attorney how consideration is reported on the deed in an assignment versus a double close.
Ready to automate your acquisitions?
See how AutomizeCRM can transform your real estate business.
Schedule a Demo