Delaware does have property tax, but the rate is lower than most states

Delaware charges property tax on real estate. The state's effective property tax rate — the amount you pay as a percentage of your home's value — is among the lowest in the nation, typically between 0.5% and 0.6%. This means a home worth $300,000 might generate an annual property tax bill between $1,500 and $1,800, though the exact amount depends on your county and local assessments.

The tax is collected at the county level, not the state level. Delaware has three counties: New Castle, Kent, and Sussex. Each sets its own assessment practices and tax rates, so what you pay in Wilmington differs from what you pay in Dover or Georgetown. Your local county assessor determines your property's assessed value, and the county tax collector sends the bill.

Property tax in Delaware funds schools, county services, and municipalities. Unlike some states, Delaware does not allow a state income tax deduction for property taxes paid, though you may be able to deduct them on your federal return if you itemize.

Key Takeaways

  • Delaware's property tax rate is typically 0.5% to 0.6% of assessed home value, which is lower than the national average of around 0.8%.
  • Each of Delaware's three counties — New Castle, Kent, and Sussex — sets its own tax rate and assessment practices, so rates vary by location.
  • The county assessor determines your property's assessed value, and the county tax collector bills you annually.
  • Property tax bills in Delaware fund local schools, county government, and municipal services.

How property tax rates differ by Delaware county

New Castle County, which includes Wilmington and the northern suburbs, typically has a property tax rate around 0.57% of assessed value. Kent County, centered on Dover, runs slightly lower at roughly 0.50%. Sussex County, in the southern part of the state, falls between them at approximately 0.55%. These figures shift year to year as counties adjust their rates to meet budget needs.

Within each county, municipalities may also levy additional property taxes. A homeowner in the city of Wilmington pays both the New Castle County rate and a city rate on top of it. A homeowner in an unincorporated area of the same county pays only the county rate. Before buying property, check both the county rate and whether the specific municipality adds its own tax.

Assessment practices also vary. Some counties reassess property values annually; others do so less frequently. A property reassessment can raise or lower your assessed value significantly, which directly affects your tax bill. Contact your county assessor's office to learn when your property was last assessed and when the next assessment is scheduled.

What property tax covers in Delaware

The largest share of Delaware property tax revenue goes to public schools. School funding in Delaware relies heavily on property tax, particularly in suburban and rural areas. The remainder supports county government operations — courts, sheriff's offices, public health departments — and municipal services like police, fire, and road maintenance in incorporated towns and cities.

Delaware also has a homestead property tax exemption for owner-occupied homes, which reduces the assessed value used to calculate tax for certain homeowners. The exemption amount varies by county and changes annually. If you own and live in your home, contact your county assessor to see whether you meet the income and ownership requirements.

How to find your property tax bill and assessment

Your county tax collector mails property tax bills annually, usually in the fall. The bill shows your assessed value, the tax rate, and the amount due. Payment is typically due by the end of the year, though some counties offer installment plans.

You can also look up your property's assessed value online through your county assessor's website. New Castle County, Kent County, and Sussex County all maintain searchable property records. Search by address or parcel number to see the assessed value, last assessment date, and sometimes the tax history. If you believe your assessment is incorrect, most counties allow you to file a written appeal within a set window after the assessment is issued.

Property tax exemptions and relief programs in Delaware

Delaware offers a homestead exemption for owner-occupied residential property. The exemption reduces your assessed value, which lowers your tax bill. To may have access to, you must own the property and live there as your primary residence. Income limits explore and vary by county — some counties cap the exemption at households earning below a certain threshold, while others have no income limit. Check with your county assessor for the current rules in your area.

Delaware also has a property tax credit for low-income homeowners and renters, administered through the state Division of Revenue. This is a separate program from the homestead exemption. If your household income falls below the threshold set each year, you may receive a credit on your state income tax return. The credit amount depends on your income and property tax paid or rent paid.

Seniors and disabled homeowners may also may have access to for additional relief programs. Some counties offer tax deferrals or exemptions for people over a certain age or with documented disabilities. Contact your county assessor's office directly to learn what programs exist in your county and whether you meet the requirements.

How Delaware property tax compares to neighboring states

Delaware's property tax burden is lighter than most of its neighbors. Maryland's effective rate is around 0.8%, New Jersey's around 2.1%, and Pennsylvania's around 1.6%. Only a handful of states nationwide have rates as low as Delaware's. This is one reason Delaware attracts homebuyers from the Northeast, though the savings must be weighed against other costs of living and state taxes.

Delaware compensates for low property tax with other revenue sources. The state has no sales tax on most goods, but it does charge sales tax on services and meals. Delaware also has a state income tax that ranges from 2.2% to 5.75% depending on income. When comparing the total tax burden, consider property tax, income tax, and sales tax together rather than property tax alone.

What happens if you don't pay Delaware property tax

If your property tax bill goes unpaid, the county tax collector will send notices and may charge penalties and interest. The exact timeline and penalty amounts vary by county. After a period of non-payment — typically two to three years, depending on county rules — the county may place a lien on your property or begin foreclosure proceedings to recover the unpaid taxes.

If you cannot pay your full bill by the due date, contact your county tax collector when ready. Many counties offer payment plans or installment agreements that allow you to spread the payment over several months. Some also have hardship programs for homeowners facing temporary financial difficulty. Acting early gives you more options than waiting until a lien is filed.

Frequently Asked Questions

Is Delaware property tax deductible on my federal income tax return?

Yes, if you itemize deductions on your federal return. Property tax paid to Delaware counties is deductible as a state and local tax (SALT) on Schedule A, subject to the current $10,000 annual cap on total state and local taxes. If you take the standard deduction instead, you cannot deduct property tax. Consult a tax professional about your specific situation.

Can I appeal my property assessment if I think it's too high?

Yes. Each county has a formal appeal process, usually requiring a written request filed within a set period after the assessment is issued — often 30 to 60 days. You may need to provide evidence such as recent appraisals, comparable sales, or documentation of property defects. Contact your county assessor's office for the specific important date and required forms.

Do I pay property tax on a rental property I own in Delaware?

Yes. Rental properties are subject to the same property tax as owner-occupied homes. The assessed value may differ because the assessor considers the property's income-generating potential. You cannot claim the homestead exemption on a rental property, but you can deduct property tax as a business expense on your federal return.

What is the difference between assessed value and market value?

Assessed value is what the county assessor determines your property is worth for tax purposes. Market value is what your home would sell for on the open market. Assessed values are often lower than market values, though they can differ significantly depending on when the last assessment occurred and how the county's assessment formula works. Your property tax is based on assessed value, not market value.

Do I have to pay property tax if I own land but no building?

Yes. Delaware taxes all real property, including vacant land. The assessed value of land depends on location, size, zoning, and development potential. Vacant land in a developed area typically has a higher assessed value than the same acreage in a rural area. You still owe property tax each year until you sell the land or it is transferred.