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Delaware · 30 Del. C. §5402Delaware realty transfer tax: 4% in most places, split between buyer and seller

Delaware's state realty transfer tax is 3% of the value, or 2.5% where the municipality or county has enacted its full 1.5% local tax (30 Del. C. §5402(a)). The state tax is apportioned equally between grantor and grantee. A first-time home buyer's share is reduced by 0.5% of the lesser of the value or $400,000 – up to $2,000 – and the seller's share is not affected. On a $400,000 sale with the full local tax: state $10,000 ($5,000 each) plus local $6,000.

Rate, who pays and an example

  1. State rate

    3%, or 2.5% where the full 1.5% local tax is in force (§5402(a)).

  2. Who pays

    The state tax is split equally between grantor and grantee (§5402(a)).

  3. First-time buyer

    Buyer's share reduced by 0.5% × the lesser of the value or $400,000 (§5402(c)).

  4. Example

    $400,000 → state $10,000 ($5,000 each) + local $6,000. First-time buyer saves $2,000 of the state share.

Good to know

  • No tax when the value is under $100 (§5402(b)).
  • Not a taxable document, among others: mortgages, transfers between spouses or parent and child, and to the lender in a foreclosure or deed in lieu (§5401(1)).
  • The local 1.5% follows the county or town ordinance; check how the contract allocates it.

What the TC checks

  • The tax line on the closing statement against the statutory rate.
  • Who pays it – the statute, the contract or local custom.
  • The value or consideration stated on the deed or declaration.

Questions about this tax

Who pays transfer tax in Delaware?

The state tax is split equally between buyer and seller (30 Del. C. §5402(a)); the contract sets how the local tax is shared.

How much is Delaware transfer tax on $400,000?

With the full local tax: $10,000 state plus $6,000 local – $16,000, of which the state part is $5,000 each.

Is there a first-time buyer break in Delaware?

Yes. The buyer's share is reduced by 0.5% of the value up to $400,000 – at most $2,000 (§5402(c)).

Related guides

Add the transfer tax check to the closing statement review as a task with an owner and due date in ClosingCode.

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Source: 30 Del. C. §§5401 and 5402 (delcode.delaware.gov, read October 25, 2026).

General information, not legal or tax advice. ClosingCode is software; it is not a law firm or brokerage.