File Updated First documented
Delaware Closing Cost Calculator
Delaware transfer tax is 4% of value where the full 1.5% local levy applies (2.5% state plus 1.5% local), or 3% state tax where it does not. Confirm the transfer value and local levy, then see the buyer’s and seller’s amounts separately, including any qualifying buyer-only state reduction.
Delaware transfer tax and settlement worksheet
Ordinary taxable resale using a confirmed statutory transfer value. State tax is 2.5% where the full 1.5% local levy is enacted, otherwise 3%. Section 5402 apportions the state tax equally between grantor and grantee; section 5412 places it on the grantor between the parties absent a contrary agreement, so confirm the contract allocation. A confirmed first-time-buyer state reduction applies only to the buyer: 0.5% of value up to $400,000. Standard full local levy may be modeled without relief; first-time/local exemptions require separate buyer and seller local quotes. Construction, special transfers and contract reallocations require full tax quotes.
State tax depends on the enacted local levy
Delaware Code section 5402 sets a 2.5% state rate where the full 1.5% local tax has been enacted, and 3% otherwise, apportioned equally between grantor and grantee. As between the parties, section 5412 places the burden on the grantor in the absence of an agreement to the contrary, so the sale contract controls who actually pays. An exemption for one buyer does not change which levy the jurisdiction enacted.
The RTT-TAX instructions describe the usual 4% combined arrangement. On a $300,000 value without relief, that produces $12,000 total: $6,000 per side. The calculator requires confirmation before using that arrangement.
| Scenario | Taxable value | State tax | Local amount | Tax subtotal |
|---|---|---|---|---|
| $300,000; full local levy; no relief | $300,000.00 | $7,500.00 | $4,500.00 | $12,000.00 |
| $500,000; full local levy; no relief | $500,000.00 | $12,500.00 | $7,500.00 | $20,000.00 |
| $500,000; confirmed state credit; illustrative local quotes | $500,000.00 | $10,500.00 | $4,500.00 | $15,000.00 |
The state buyer credit has a $2,000 ceiling
The Division of Revenue’s first-time-buyer guidance describes a reduction of 0.5% on the first $400,000 of value. A qualifying $300,000 purchase has a $1,500 state reduction; a $500,000 purchase reaches the $2,000 maximum.
That credit reduces the buyer’s state amount only. At $500,000 under the 2.5% state schedule, the seller still owes $6,250 to the state while a qualifying buyer owes $4,250 before local charges. Splitting the reduced combined state total equally would improperly transfer $1,000 of the buyer’s benefit to the seller.
Verify eligibility before selecting the reduction
Section 5401 defines first-time status by prior legal interests in residential property wherever located, with principal-residence timing and joint-purchaser requirements. The calculator’s confirmed option does not determine eligibility from age, Delaware residency or the fact that this is a first purchase in the state.
Use the Division of Revenue’s required first-time-buyer documentation and have the settlement preparer confirm the claim. An uncertain claim should not be entered as an automatic credit.
Local buyer relief is a separate calculation
Title 9 section 8102 addresses county tax in unincorporated areas and a first-time-buyer exemption through at least $400,000, with authority to increase that amount. Title 22 section 1601 separately authorizes municipal levies. Both let the county or municipality determine whether the transferor or transferee pays its tax. Confirm the property’s actual jurisdiction, its ordinance and your contract before using an equal local split.
For that reason, selecting the state buyer credit requires a local quote for each party, including zero if appropriate. The example above uses an illustrative $750 buyer local amount and $3,750 seller local amount; those entries are not a county lookup.
With those quoted amounts, a $500,000 qualifying buyer has $5,000 total transfer tax and the seller has $10,000. The combined $15,000 is not split again. If your local quote differs, the result changes only for the party whose quote changes.
Use the confirmed statutory transfer value
The RTT-TAX instructions account for consideration, mortgages, liens and assessed value. Section 5401 also provides an appraisal and fair-market-value rule. Enter the preparer’s confirmed transfer value; the calculator does not silently assume that the advertised price resolves those requirements.
Section 5402 exempts property with actual value below $100. Other exemptions, construction-related tax, entity transfers and nonstandard allocations need a full tax quote for the selected side.
Combine tax with the remaining closing amounts
A hypothetical $500,000 seller paying $10,000 transfer tax, $1,000 other listed fees and $300,000 payoff has $189,000 in proceeds before commission and credits. For the buyer, the tax amount is added to down payment and the quoted lender, title, recording and reserve lines, then deposit and credits are subtracted.
Last reviewed 2026-10-05. Worksheet methodology.
Questions about Delaware
- Does Delaware’s first-time-buyer credit reduce the seller’s tax?
- No. The state reduction belongs to the qualifying buyer. It is 0.5% of the lesser of the transfer value or $400,000, up to $2,000. The seller’s state share remains payable.
- Why does the calculator ask whether the full local levy was enacted?
- The state rate is 2.5% where the jurisdiction has enacted the full 1.5% local levy, and 3% otherwise. An exemption for a particular buyer does not mean the jurisdiction has no levy.