Introduction
Delaware has some of the lowest property tax rates in the U.S., making it an attractive place to own a home. Unlike many states, Delaware’s property tax system is straightforward, with no state-level property tax—only county and local property taxes apply.
This guide explains Delaware’s property tax rates, how taxes are calculated, available exemptions, and tips to reduce your property tax bill.
How Do Property Taxes Work in Delaware?
- Delaware does not have a state-level property tax.
- Property taxes are levied by counties, school districts, and municipalities.
- Homeowners pay property taxes based on the assessed value of their home.
- Delaware’s property tax rates are among the lowest in the country.
Delaware Property Tax Rates by County
County Average Effective Property Tax Rate
New Castle County 0.55%
Kent County 0.51%
Sussex County 0.34%
Example Property Tax Calculation
- If your home is valued at $300,000 and you live in New Castle County (0.55% tax rate):
- $300,000 × 0.55% = $1,650 in annual property taxes.
What Determines Your Property Tax Bill?
- Assessed Property Value – Determined by county tax assessors.
- Local Tax Rates – Vary based on county, city, and school district funding needs.
- School Taxes – The largest portion of property taxes goes toward public schools.
Property Tax Exemptions & Discounts in Delaware
1. Senior School Property Tax Credit
- Homeowners 65 and older can receive a credit of up to $500 on school property taxes.
- Must have lived in Delaware for at least 10 years.
2. Disabled Veteran Property Tax Exemption
- Veterans with 100% service-connected disabilities may qualify for full or partial property tax exemptions.
3. Homestead Exemption for Low-Income Residents
- Some counties offer property tax relief for low-income homeowners.
How to Lower Your Delaware Property Taxes
1. Apply for Exemptions & Credits
- Check eligibility for senior, veteran, or low-income tax relief programs.
2. Verify Your Property Assessment
- Ensure the county’s assessed value is accurate—if it’s too high, you may be overpaying.
- Request a reassessment if your home value is outdated.
3. Appeal Your Property Tax Bill
- If you believe your tax assessment is incorrect, you can file an appeal with your county tax office.
4. Take Advantage of Tax Payment Plans
- Some counties allow installment payments to make property tax bills more manageable.
Delaware Property Tax Payment Deadlines
- New Castle County: Due September 30 each year.
- Kent County: Due October 31 each year.
- Sussex County: Due January 31 each year.
IRS Compliance & Property Tax Considerations
- Form 1040 (Schedule A) – Homeowners can deduct Delaware property taxes on their federal tax return if they itemize deductions.
- IRS SALT Deduction Limit – Property taxes count toward the $10,000 cap on state and local tax (SALT) deductions.
Conclusion
Delaware homeowners benefit from low property tax rates, but understanding exemptions, assessments, and local tax laws can help reduce tax bills even further. Applying for senior credits, verifying assessments, and using deductions ensures homeowners maximize their savings.
For expert property tax planning and homeowner tax strategies, schedule a meeting with our CPA Anshul Goyal by clicking at https://calendly.com/anshulcpa/ now.
Frequently Asked Questions (FAQs)
1. How are property taxes calculated in Delaware?
Delaware property taxes are based on the assessed home value multiplied by the local tax rate.
2. What is the average property tax rate in Delaware?
The average effective property tax rate in Delaware is 0.43%, one of the lowest in the U.S.
3. Do seniors get a property tax break in Delaware?
Yes, homeowners 65 and older may qualify for the Senior School Property Tax Credit (up to $500).
4. Can I deduct Delaware property taxes on my federal return?
Yes, Delaware property taxes are deductible if you itemize, but the SALT deduction is capped at $10,000.
5. Should I appeal my property tax assessment?
If you believe your home’s assessed value is too high, you can file an appeal with your county tax office.
About Our CPA
Anshul Goyal, CPA EA FCA is a licensed Certified Public Accountant and an IRS Enrolled Agent (EA). He specializes in Delaware property tax planning, homeowner tax deductions, and real estate tax strategies.
Schedule a consultation today with Anshul Goyal, CPA, for expert property tax guidance.