Delaware’s transfer tax has a distinctive built-in interaction rule: the moment a county or municipality enacts a 1.5% local rate, the state drops from 3.0% to 2.5% — keeping the combined burden at 4.0%. The 50/50 default split makes both parties equally responsible absent a written agreement. The first-time homebuyer credit reduces only the buyer’s share, creating an asymmetric closing cost in qualifying transactions. This guide uses two running examples: a $300,000 residential sale in unincorporated Sussex County with a first-time buyer, and a $500,000 sale in Wilmington with no buyer credit.
1 Understand Delaware’s Transfer Tax Framework
Section 5401 defines “conveyance” broadly (including leases over 5 years and assignments) and lists all exempt transfers in § 5401(1)(a)–(p).[1] Section 5402 sets rates, the taxable base (full consideration plus assumed debt), the FTHB credit, long-term lease rules, and construction contract rules.[1] Section 5404 governs documentary stamps — affixation, cancellation, and the rule that no deed may be recorded without them.[2] Section 5409 mandates the Affidavit of Gain and Value for deeds that do not state full consideration or claim an exemption.[3] Section 5410 makes failure to pay, or forging/misusing stamps, a misdemeanor (up to $500 fine or 1 year imprisonment).[3]
County transfer tax authority comes from Title 9 Del. C. § 8102; municipal authority from Title 22 Del. C. § 1601.[5][6] Delaware has three county Recorders of Deeds: New Castle (Wilmington), Kent (Dover), and Sussex (Georgetown) — there are no sub-county recording offices. Transfer-on-death deeds under Title 25 are the sole category exempt from even filing Form 5402 or affixing stamps.[8]
Example A — Unincorporated Sussex County, $300,000 Residential Sale, First-Time Buyer
Cash purchase, no assumed debt, residential use, FTHB confirmed. Transfer date: May 2026. Recorded at: Sussex County Recorder, Georgetown. TAXABLE FTHB CREDIT APPLIES
Example B — Wilmington (New Castle County), $500,000 Sale, No FTHB Credit
Cash purchase, no assumed debt, not a first-time buyer. Transfer date: August 2026. Recorded at: New Castle County Recorder, Wilmington. TAXABLE
2 Determine the Total Taxable Consideration
The taxable base is the full consideration including any assumed mortgage or liens taken subject to by the buyer.[1] A buyer paying $250,000 cash while assuming a $50,000 mortgage owes tax on $300,000. If stated consideration is below assessed value, the higher assessed value may govern unless a sworn affidavit demonstrates fair market value is lower. Every deed must either state full value on its face or be accompanied by a § 5409 Affidavit of Gain and Value.[3]
Transfers of a controlling interest (> 50%) in an entity owning Delaware real property are treated as a taxable conveyance of the underlying real estate; the taxable base is the property’s FMV multiplied by the percentage transferred, plus proportionate assumed liabilities — an anti-avoidance provision preventing stock-sale workarounds.
Taxable Consideration (30 Del. C. § 5402): Standard Sale: Taxable Value = Cash Consideration + Assumed Mortgage / Liens Low-Value Threshold: Taxable Value < $100 → No tax due. Construction Contract (§ 5402(f)): Tax = 2.0% × (Contract Amount − $10,000) Owner / builder pays; publicly-funded affordable-housing portion exempt. Long-Term Lease (> 5 years, § 5401(5)): Year 1: State Rate × Full Lease Value (paid at recording) Years 2–N: State Rate × Annual Consideration (paid annually) Example A: $300,000 cash, $0 assumed = $300,000 taxable Example B: $500,000 cash, $0 assumed = $500,000 taxable
3 Determine the Applicable Rates — State + Local
The state rate responds directly to local action: if the applicable county or municipality has enacted a transfer tax of 1.5% or more, the state rate drops from 3.0% to 2.5%.[1] If local is below 1.5% (including 0% or 0.75%), the state stays at 3.0%. In most of Delaware the combined rate is therefore 4.0%. County and municipal rates are mutually exclusive — when property is within an incorporated municipality, the municipal rate applies instead of the county rate, not in addition to it.
Rate Rule
- State 2.5% + local 1.5% = 4.0% — unincorporated New Castle, Kent, and Sussex counties; Wilmington, Newark, Dover, Lewes, Rehoboth Beach, Bethany Beach, Middletown, Milton, Ocean View, Selbyville, Greenwood, Fenwick Island, Dewey Beach, Frankford, Bridgeville, and most other municipalities
- State 3.0% + local 0.75% = 3.75% — Georgetown (Sussex) and Seaford (Sussex)
- State 3.0% + local 1.0% = 4.0% — Hartly, Kenton, and Woodside (small Kent County towns; county 1.0% does not trigger state reduction)
- State 3.0% + local 0% = 3.0% — Milford (Kent and Sussex portions) and Ellendale (Sussex)
Rate Determination (30 Del. C. § 5402; 9 Del. C. § 8102; 22 Del. C. § 1601): Local Rate = County Rate (unincorporated) OR Municipal Rate (incorporated) [not both simultaneously] State Rate = 2.5% if Local Rate ≥ 1.5% State Rate = 3.0% if Local Rate < 1.5% (includes 0% and 0.75%) Combined = State Rate + Local Rate Example A — Unincorporated Sussex County (county 1.5%): State 2.5% + County 1.5% = Combined 4.0% Example B — Wilmington (city 1.5%): State 2.5% + Municipal 1.5% = Combined 4.0%
4 Compute the Tax, Apply the 50/50 Split, and Deduct Any First-Time Homebuyer Credit
Multiply the combined rate by the taxable consideration to get the gross transfer tax, then split it equally between seller and buyer.[4] Parties may contractually shift more or all of the tax burden to one side — but the buyer’s FTHB credit cannot be contractually reassigned to the seller.
First-Time Homebuyer (FTHB) Credit
For residential purchases on or after August 1, 2017, a qualifying first-time buyer receives a credit of 0.5% × min(total value, $400,000), capped at $2,000.[1] The credit applies only to the buyer’s portion of the state tax — it does not reduce the seller’s share or any local tax share. The buyer’s net tax floors at $0. Claimed on Schedule 1 attached to Form 5402. Eligibility: buyer has not owned a principal residence in the past three years; property will be used as a residential principal residence; closing on or after 8/1/2017.
Computation (30 Del. C. §§ 5402, 5412): Gross State Tax = State Rate × Total Value Gross Local Tax = (County Rate + Muni Rate) × Total Value Gross Total = Gross State + Gross Local 50/50 Default Split: Seller Share = Gross Total ÷ 2 Buyer Share = Gross Total ÷ 2 [before FTHB credit] FTHB Credit (residential, post-8/1/2017): Credit = min(0.005 × Total Value, 2000) Buyer Share = MAX(0, Gross Total ÷ 2 − Credit) Net Total = Seller Share + Buyer Share ────────────────────────────────────── Example A ($300,000 — Sussex uncorp., FTHB buyer): State 2.5% × $300K = $7,500.00 County 1.5% × $300K = $4,500.00 Gross Total = $12,000.00 FTHB: 0.5% × $300K = $1,500.00 Seller: $12,000 ÷ 2 = $6,000.00 (no credit) Buyer: $6,000 − $1,500 = $4,500.00 Net Total = $10,500.00 Eff. rate: 3.5000% Example B ($500,000 — Wilmington, no FTHB): State 2.5% × $500K = $12,500.00 City 1.5% × $500K = $7,500.00 Gross Total = $20,000.00 Seller: $10,000.00 | Buyer: $10,000.00 Net Total = $20,000.00 Eff. rate: 4.0000%
Example A — $300,000 Sussex County, FTHB Buyer
Seller: $6,000.00 | Buyer: $4,500.00 (after $1,500 FTHB credit) | Net total: $10,500.00
Example B — $500,000 Wilmington, No Credit
Seller: $10,000.00 | Buyer: $10,000.00 | Net total: $20,000.00
5 Pay via Documentary Stamps, File Form 5402, and Understand Exemptions
Tax is due at deed recording. Payment is made by affixing state documentary stamps to the original deed in the exact tax amount; each stamp must be cancelled by the affixing party (initials and date through the face).[2] County Recorders sell stamps directly (retaining a 1% commission) or accept Division-approved electronic payment. No deed may be recorded without full payment.[2]
Form 5402 (Realty Transfer Tax Return) must accompany every deed at recording, even exempt ones.[9] When the FTHB credit applies, Schedule 1 must be attached. For exempt transfers, a § 5409 Affidavit of Gain and Value must be attached, stating the true value and the specific § 5401(1) exemption basis. In foreclosure/deed-in-lieu transfers (§ 5401(1)(p)), the grantee (lender) — not the grantor — signs the affidavit.[3]
Exemptions Under 30 Del. C. § 5401(1)
§ 5401(1)(b) — Spouse / ex-spouse. Transfers between spouses, or between ex-spouses for property acquired before divorce, are fully exempt.[1]
§ 5401(1)(c) — Parent ↔ child / siblings. Transfers between parent and child (or child’s spouse), and between siblings, half-siblings, and step-siblings, are fully exempt.[1]
§ 5401(1)(d) — Nominee / trustee / straw party. Conveyances with no change in beneficial ownership, and corrective deeds without consideration, are fully exempt.[1]
§ 5401(1)(e) — Parent–subsidiary (no consideration). Transfers between a parent corporation and its wholly-owned subsidiary with no actual consideration are exempt.[1] Liquidation transfers are taxable unless the owner held the interest more than three years.
§ 5401(1)(f) — Government / public instrumentalities. Transfers by or to the U.S. Government, State of Delaware, any county, municipality, University of Delaware, Delaware State University, or authorized instrumentality are fully exempt.[1]
§ 5401(1)(g) — 501(c)(3) nonprofit (no consideration). Transfers without consideration to qualified 501(c)(3) nonprofits are exempt. Nonprofit land banks under Title 31, Ch. 47 are similarly exempt.[1]
Religious organizations and volunteer fire companies. Each party’s share is waived for transfers involving a religious organization (non-commercial use) or volunteer fire company.[1]
§ 5401(1)(m) — Manufactured / mobile home. Transfer of a manufactured home already taxed under the DMV title tax (Title 25 § 3002) is exempt to avoid double taxation.[7]
§ 5401(1)(n) — Affordable housing. Only the non-subsidized portion is taxable; the publicly-funded portion is exempt.[1]
§ 5401(1)(p) — Foreclosure / deed in lieu. Conveyance to a mortgagee in foreclosure or deed in lieu is exempt; grantee must sign a § 5409 affidavit.[1][3]
Transfer-on-death deed (Title 25). No tax, no Form 5402, no affidavit, no stamps required at recording — uniquely exempt from all filing requirements.[8]
Broker trade-in credit (§ 5403). A licensed broker who trades in a client’s home and resells within one year may credit the tax paid on the acquisition against tax owed on the resale.[2]
Rate Reference Tables
| Jurisdiction | State Rate | Local Rate | Combined Rate | Notes |
|---|---|---|---|---|
| Unincorporated New Castle County | 2.50% | 1.50% | 4.00% | County 1.5% → state reduced to 2.5% |
| Wilmington / Newark / Middletown / Elsmere | 2.50% | 1.50% | 4.00% | City 1.5% |
| Unincorporated Kent County | 2.50% | 1.50% | 4.00% | County 1.5% |
| Dover / Smyrna (Kent) | 2.50% | 1.50% | 4.00% | City 1.5% |
| Hartly / Kenton / Woodside (Kent) | 3.00% | 1.00% | 4.00% | County 1.0% — state stays 3.0% (local <1.5%) |
| Milford (Kent portion) | 3.00% | 0% | 3.00% | No local tax |
| Unincorporated Sussex County | 2.50% | 1.50% | 4.00% | County 1.5% |
| Lewes / Rehoboth Beach / Bethany Beach / Dewey Beach | 2.50% | 1.50% | 4.00% | Municipal 1.5% |
| Fenwick / Milton / Ocean View / Selbyville / Greenwood / Frankford / Bridgeville | 2.50% | 1.50% | 4.00% | Municipal 1.5% |
| Georgetown / Seaford (Sussex) | 3.00% | 0.75% | 3.75% | Muni 0.75% — state stays 3.0% |
| Milford (Sussex) / Ellendale | 3.00% | 0% | 3.00% | No local tax |
| First-time homebuyer credit (residential, ≥ 8/1/2017) | −0.5% × min(price, $400K) → max −$2,000 on buyer’s state share | |||
| Scenario | Sale Price | State Tax | Local Tax | FTHB Credit | Net Total | Seller | Buyer |
|---|---|---|---|---|---|---|---|
| Sussex uncorp., FTHB (Ex. A) | $300,000 | $7,500 | $4,500 | −$1,500 | $10,500 | $6,000 | $4,500 |
| Wilmington, no FTHB (Ex. B) | $500,000 | $12,500 | $7,500 | — | $20,000 | $10,000 | $10,000 |
| Sussex uncorp., no FTHB | $300,000 | $7,500 | $4,500 | — | $12,000 | $6,000 | $6,000 |
| FTHB at $400,000 (credit capped at $2K) | $400,000 | $10,000 | $6,000 | −$2,000 | $14,000 | $8,000 | $6,000 |
| FTHB above $400K — still capped $2K | $500,000 | $12,500 | $7,500 | −$2,000 | $18,000 | $10,000 | $8,000 |
| Milford / Ellendale — state only | $300,000 | $9,000 | $0 | — | $9,000 | $4,500 | $4,500 |
| Georgetown (0.75% muni) | $300,000 | $9,000 | $2,250 | — | $11,250 | $5,625 | $5,625 |
| Low-value — under $100 | $50 | $0 | $0 | — | $0 | $0 | $0 |
| Spouse / family — §5401(1)(b)(c) | any | $0 | $0 | — | $0 exempt | $0 | $0 |
| Government transfer — §5401(1)(f) | any | $0 | $0 | — | $0 exempt | $0 | $0 |
| Construction contract $150K (§ 5402(f)) | — | 2% × ($150K−$10K) = $2,800 | — | $2,800 | Builder pays full amount | ||
State rate 2.5% where local ≥ 1.5%; state 3.0% where local < 1.5%. FTHB credit caps at $2,000 regardless of price. 50/50 default split; parties may contract otherwise. Verify current local rates with the applicable county Recorder before closing.
| Conveyance Type | Tax Treatment | Statutory Basis | § 5409 Affidavit? |
|---|---|---|---|
| Spouse / ex-spouse | Fully exempt | § 5401(1)(b) | Yes |
| Parent ↔ child / siblings | Fully exempt | § 5401(1)(c) | Yes |
| Nominee / trustee / straw party | Fully exempt | § 5401(1)(d) | Yes |
| Parent corp ↔ wholly-owned subsidiary (no consideration) | Fully exempt | § 5401(1)(e) | Yes |
| U.S. / State of DE / county / muni / UD / Del State | Fully exempt | § 5401(1)(f) | Yes |
| 501(c)(3) nonprofit (no consideration) | Fully exempt | § 5401(1)(g) | Yes |
| Religious org (non-commercial) / Volunteer fire company | That party’s share waived | § 5401(1) | Yes |
| Nonprofit land bank (Title 31, Ch. 47) | Fully exempt | § 5401(1) | Yes |
| Manufactured / mobile home (already DMV-taxed) | Fully exempt | § 5401(1)(m); 25 Del.C. § 3002 | Yes |
| Affordable housing (publicly funded portion only) | Funded portion exempt | § 5401(1)(n) | Yes |
| Foreclosure / deed in lieu (to lender) | Fully exempt — grantee signs affidavit | § 5401(1)(p) | Yes — grantee signs |
| Old-home trade-in to builder | Fully exempt | § 5402 | Yes |
| Transfer-on-death deed (Title 25) | No tax, no Form 5402, no stamps | Title 25 Del. C. | No |
| Consideration ≤ $100 | No tax (low-value threshold) | § 5402 | Recommended |
| First-time homebuyer (residential, ≥ 8/1/2017) | Buyer’s state share − 0.5% × min(price,$400K), max −$2,000 | § 5402 / Schedule 1 | Schedule 1 to Form 5402 |
All exempt transfers except transfer-on-death deeds still require Form 5402 at recording. The § 5409 affidavit must state true value and exemption basis. Recorder will not process without completed affidavit.
References
- 30 Del. C. §§ 5401–5402 — Definitions; Rate 3.0% (2.5% with local ≥ 1.5%); Taxable Base Including Assumed Debt; FTHB Credit 0.5% × min(price,$400K) Capped $2,000; Long-Term Leases; Construction Contracts 2% Above $10K; Low-Value Threshold <$100; Exemption List § 5401(1)(a)–(p); Pre-Aug 2017 Rate 2.0%.
§ 5401 defines “conveyance” broadly (deeds, long leases over 5 years, assignments, and entity-level controlling-interest transfers) and lists all exempt transfer categories in § 5401(1)(a)–(p). § 5402(a) establishes the state rate at 3.0%, reduced to 2.5% when the applicable county or municipality has enacted a ≥ 1.5% local transfer tax. § 5402 also governs: the FTHB credit (0.5% × min(value,$400K), max $2,000, buyer’s state share only, residential purchase, on/after 8/1/2017; prior state rate was 2.0%); long-term leases (> 5 years — Year 1 tax paid at recording on full lease value, subsequent years annually); construction contracts (2.0% on amount above $10,000, builder/owner pays, affordable housing subsidized portion exempt); low-value threshold (no tax when total consideration including assumed debt is under $100). The closing date — not the contract date — determines the applicable rate.
30 Del. C. Ch. 54 — delcode.delaware.gov - 30 Del. C. §§ 5403–5405 — Broker Trade-In Credit (§ 5403); Documentary Stamps; Affixation and Cancellation; No Recording Without Payment; 1% Recorder Commission; Electronic Payment (§ 5405(b)).
§ 5403 provides a credit for licensed brokers who acquire a home as trade-in and resell within one year — the tax paid on acquisition may be credited against tax on the resale. § 5404 requires documentary stamps to be physically affixed to the deed and cancelled by the affixing party (initials/date). County Recorders sell stamps (retaining 1% commission) or accept approved electronic payment. No deed subject to transfer tax may be recorded without full payment — the Recorder is legally required to refuse deficient filings. § 5405(b) authorizes the Division of Revenue to prescribe electronic payment equivalents.
30 Del. C. §§ 5403–5405 - 30 Del. C. §§ 5409–5410 — Affidavit of Gain and Value; Exemption Affidavit; Foreclosure Grantee Signs; Penalties — Misdemeanor Up to $500 Fine or 1 Year Jail; Mandatory Payment of Unpaid Tax.
§ 5409 requires a sworn Affidavit of Gain and Value for any deed that does not state full consideration on its face or claims a § 5401(1) exemption. The grantor signs in most cases; the grantee (lender) signs for foreclosure/deed-in-lieu transfers under § 5401(1)(p). In sheriff’s sales, the sheriff pays from proceeds unless a § 5409 affidavit establishing the foreclosure exemption is filed. § 5410 makes the following misdemeanors: recording a taxable deed without full payment; affixing, removing, forging, or misusing stamps; and misrepresenting value. Penalty: up to $500 fine or 1 year imprisonment, plus mandatory full payment of unpaid tax.
30 Del. C. §§ 5409–5410 - 30 Del. C. § 5412 — Grantor Default Obligor; 50/50 Split Between Grantor and Grantee; Written Agreement May Reallocate; FTHB Credit Cannot Be Shifted to Seller.
§ 5412 designates the grantor as the default obligor. § 5402 expressly splits the tax equally — 50% from grantor, 50% from grantee — absent contrary written agreement. Parties may contractually shift more or all of the tax to one side, but the FTHB credit attaches specifically to the grantee’s share and cannot be contractually reassigned to the seller. Closing statements (CD/HUD-1) reflect the agreed allocation and the FTHB credit separately.
30 Del. C. § 5412 - 9 Del. C. § 8102 — County Authority; New Castle, Kent, and Sussex Each Impose 1.5% in Unincorporated Areas; Triggers State Rate Reduction; Hartly/Kenton/Woodside 1.0% Exception; Sussex County Code Art. IV.
Title 9 § 8102 authorizes each Delaware county to levy up to 1.5% on transfers in unincorporated areas. All three counties impose the full 1.5% (New Castle County-wide; Kent County-wide except Hartly/Kenton/Woodside at 1.0%; Sussex County-wide under Sussex County Code Art. IV § 103-19). The 1.5% county rate triggers the § 5402 state reduction to 2.5%, resulting in 4.0% combined. The Hartly/Kenton/Woodside 1.0% county rate does not trigger the reduction (1.0% < 1.5%), keeping the state at 3.0% and coincidentally also yielding 4.0% combined. When property is within an incorporated municipality, the county unincorporated rate does not apply — the municipal rate does instead.
9 Del. C. § 8102 | Sussex County Code Art. IV, § 103-19 | Kent County Recorder of Deeds, Dover - 22 Del. C. § 1601 — Municipal Authority Up to 1.5%; Most Municipalities at Full 1.5%; Georgetown and Seaford at 0.75% (No State Reduction); Milford and Ellendale at 0%.
Title 22 § 1601 authorizes incorporated municipalities to levy up to 1.5%. Most major Delaware municipalities use the full 1.5% — including Wilmington, Newark, New Castle (city), Middletown, Elsmere, Newport, Dover, Smyrna, Bethany Beach, Bridgeville, Dewey Beach, Fenwick Island, Frankford, Greenwood, Lewes, Milton, Ocean View, Rehoboth Beach, and Selbyville. Municipal rate applies instead of (not in addition to) the county unincorporated rate. Georgetown and Seaford impose only 0.75%, which does not trigger the § 5402 state reduction (0.75% < 1.5%), yielding 3.75% combined. Milford and Ellendale impose no municipal tax (3.0% state only). Verify current municipal rates with the applicable county Recorder or municipal offices before closing.
22 Del. C. § 1601 - 25 Del. C. § 3002 — Manufactured / Mobile Home DMV Title Transfer Tax; Exemption from Realty Transfer Tax Under § 5401(1)(m) to Prevent Double Taxation.
Title 25 § 3002 imposes a separate transfer tax on manufactured and mobile home title transactions processed through the Delaware Division of Motor Vehicles. Because the DMV title tax is already paid at the time of the DMV title transfer, a subsequent conveyance of a manufactured home that has already been DMV-taxed is exempt from the realty transfer tax under § 5401(1)(m). If a manufactured home is later affixed to land and legally reclassified as real property under Delaware law, the § 5401(1)(m) exemption may not apply to future deed-based transfers of the combined real estate.
25 Del. C. § 3002 | 30 Del. C. § 5401(1)(m) - Title 25 Del. C. — Transfer-on-Death Deeds; No Realty Transfer Tax, No Form 5402, No § 5409 Affidavit, No Documentary Stamps at Recording; Uniquely Full Procedural Exemption.
Delaware’s TOD deed statute under Title 25 allows property owners to designate beneficiaries who receive the property at death without probate. TOD deeds recorded during the grantor’s lifetime carry a unique blanket exemption: no Form 5402, no § 5409 affidavit, and no documentary stamps are required at the time the TOD deed is recorded. This reflects the non-vested, revocable nature of the instrument — no ownership transfer occurs during the grantor’s lifetime. Upon the grantor’s death, when the beneficiary records the actual transfer, tax treatment depends on the circumstances; practitioners should consult Delaware law or counsel regarding post-death recording obligations.
Title 25 Del. C. — Transfer-on-Death Deeds - Delaware Form 5402 — Realty Transfer Tax Return (Rev. 8/2018); Schedule 1 (FTHB Credit); Required at Every Recording; Affidavit of Gain and Value (§ 5409); County Recorders of Deeds: New Castle (Wilmington), Kent (Dover), Sussex (Georgetown).
Form 5402 must accompany every deed at recording, even for exempt transfers (except TOD deeds). It captures grantor/grantee information, property details, consideration and composition (cash, assumed mortgage), applicable state and local rates, gross tax computation, and net tax after credits. Line 10 and attached Schedule 1 cover the FTHB credit — Schedule 1 requires confirmation of no prior home ownership in the past three years, residential use, and the credit computation (0.5% × min(price,$400K), max $2,000). For exempt transfers, the § 5409 Affidavit of Gain and Value must identify the specific § 5401(1) basis and attest to true value. The three county Recorders of Deeds (New Castle: (302) 395-7700; Kent: (302) 744-2314; Sussex: (302) 855-7785) serve as recording authorities and collect the tax at recording.
Delaware Division of Revenue: revenue.delaware.gov — Form 5402 and Instructions - Delaware Division of Revenue — Pre-August 2017 Rate 2.0%; Rate Change Guidance; Controlling Interest Entity Transfers; Broker Credit (§ 5403); Electronic Payment Program; revenue.delaware.gov.
The Division of Revenue administers the state portion of the realty transfer tax and publishes current Form 5402 instructions, exemption guidance, rate change notices, and the electronic payment program. Practitioners must be aware that the current rates (3.0%/2.5%) took effect for transfers on/after August 1, 2017 — contracts predating that cutoff may be subject to the prior 2.0% state rate. The Division also administers interpretive guidance on controlling-interest entity transfers (where Delaware real estate is indirectly transferred through stock or LLC interest sales), which typically require direct consultation with the Division and legal counsel. For broker trade-in credits (§ 5403), both the original acquisition and the resale within 12 months must be documented on Form 5402. The Division’s full resource library is available at revenue.delaware.gov.
revenue.delaware.gov | delcode.delaware.gov
Disclaimer: This guide is for general informational and educational purposes only and does not constitute legal or tax advice. Delaware’s realty transfer tax is governed by 30 Del. C. §§ 5401–5412; county authority by 9 Del. C. § 8102; municipal authority by 22 Del. C. § 1601. Rates and exemptions are current through 2026 but may be amended by statute or local ordinance. Always verify current rates with the applicable county Recorder of Deeds and the Delaware Division of Revenue (revenue.delaware.gov) before closing. Form 5402 and, where applicable, a § 5409 Affidavit of Gain and Value must accompany every deed at recording. Consult a licensed Delaware real estate attorney for complex transactions including entity-level controlling-interest transfers, partial exemptions, and affordable housing projects.