Delaware offers an incredibly favorable tax climate for homeowners, boasting a statewide effective property tax rate of just 0.54% and no state sales tax. Following a historic court-mandated reassessment project spanning 2024-2025, property values across all three counties have been updated to 100% of fair market value, bringing modern fairness to the state’s tax system (est., Tax Foundation 2026 / U.S. Census ACS 2023).
Because Delaware derives significant revenue from corporate franchise taxes and high real estate transfer taxes, local property taxes remain exceptionally low. The state’s three countiesNew Castle, Kent, and Sussexeach manage their own assessment rolls, with Sussex County boasting some of the lowest effective property tax rates on the East Coast.
The Historic Statewide Reassessment (2024-2025)
For decades, Delaware property taxes were calculated using shockingly outdated base years (1983 in New Castle, 1987 in Kent, and 1974 in Sussex). Following a 2020 Court of Chancery ruling that deemed this system unconstitutional, all three counties underwent a massive, multi-year reassessment project to bring values up to 100% of current fair market value.
- Kent County: Reassessment values rolled out for the 2024 tax year.
- New Castle and Sussex Counties: Reassessment values rolled out for the 2025 tax year.
To ensure this didn’t result in a massive tax hike, state law required counties and municipalities to implement revenue-neutral millage rates. Because your home’s assessed value skyrocketed, the local tax rate was slashed proportionally to keep the total amount collected roughly the same.
Going forward, a 2024 law (House Bill 62) mandates a rolling five-year reassessment cycle to prevent values from ever becoming outdated again.
Delaware statewide effective rate. On a $350,000 home, expect approximately $1,890 per year at the statewide average. (est., Tax Foundation 2026 / Census ACS 2023).
| Home Value | Annual Tax (est.) | Monthly Payment | vs. U.S. Average |
|---|---|---|---|
| $250,000 | $1,350 | $112 | -$900 below avg. |
| $350,000 | $1,890 | $157 | -$1,260 below avg. |
| $500,000 | $2,700 | $225 | -$1,800 below avg. |
| $750,000 | $4,050 | $337 | -$2,700 below avg. |
| $1,000,000 | $5,400 | $450 | -$3,600 below avg. |
Estimates use 0.54% statewide effective rate. U.S. average uses 0.90%. Source: est., Tax Foundation / Census ACS 2023.
Caps on Property Tax Revenue Increases
While there is no statewide cap on how much an individual property’s assessment can increase, Delaware places strict limits on local government revenue following a reassessment:
- Counties and Municipalities: Must roll back millage rates to be revenue-neutral. If they wish to raise revenue above that neutral baseline, they face strict statutory limitations.
- School Districts: School taxes make up the largest portion of a Delaware property tax bill. Following a reassessment, school districts are limited to a maximum 10% revenue gain over the prior year. Any request to raise operating rates further requires a direct voter referendum.
Senior School Property Tax Credit and Veteran Exemptions
Delaware offers robust, targeted relief programs designed to shield vulnerable populations from high school district levies.
- Senior School Property Tax Credit: Homeowners aged 65 or older can receive a 50% credit against their regular school property taxes, capped at a maximum of $500 annually. (Note: A residency requirement applies, ranging from 3 to 10 years depending on when you moved to the state).
- Disabled Veteran Exemption: Veterans with a 100% permanent and total service-connected disability rating from the VA are eligible for a 100% tax credit against their non-vocational school district property taxes. This requires a 3-year residency.
Tax Rates Across Delaware’s Three Counties
Delaware is unique in having only three counties, each with distinct property tax profiles based on their economies and school district needs.
| County | Effective Rate | Annual Tax on $350k Home | Notes |
|---|---|---|---|
| New Castle County | 0.70% | $2,450 | Most populous; highest rates, especially in northern school districts. |
| Kent County | 0.45% | $1,575 | Central county; includes Dover (State Capital). |
| Sussex County | 0.33% | $1,155 | Southern beaches; massive resort values keep resident rates incredibly low. |
Disclaimer and Methodology
This calculator provides estimates for planning purposes only, based on effective property tax rates (actual median taxes paid divided by median home values). Under Delaware law, property is assessed at 100% of fair market value. Because exact millage rates vary heavily by specific school district and municipality, this calculator uses historical “effective rates” to bypass complex overlapping levies and provide a highly realistic estimate of actual homeowner burden.
What this calculator does not account for:
- Recent voter-approved school referendums, which can spike local tax rates above the revenue-neutral caps established during the 2024-2025 reassessment.
- The $500 Senior School Property Tax Credit, which is applied directly to the tax bill rather than subtracted from the home’s value.
How to get an accurate estimate:
- Find your home’s 100% Assessed Value on your County Assessor’s property search tool.
- Multiply the Assessed Value by your total combined local millage rate (county + school + municipal).
- Divide the result by 100 to get your total tax bill.
Data sources: Statewide effective rate and county effective rates derived from U.S. Census Bureau ACS 2023 and SmartAsset aggregations. Statutory rules and reassessment mandates from the Delaware Department of Finance and 2024-2025 Legislative Session laws.
Return to the National Property Tax Calculator to compare Delaware with other states.