Delaware Property Tax Law Changes 2026: What Homeowners Need to Know

Updated March 2026

Key Takeaway

Delaware has not conducted a countywide reassessment in decades in most jurisdictions -- Sussex County last reassessed in 1974, Kent County in 1987. This means assessed values are wildly disconnected from actual market values. The state has the lowest property tax burden of any state on the East Coast (0.57% effective rate), but that could change if reassessment lawsuits succeed.

Delaware Property Tax Snapshot: 2026

Median home value: $251,100
Average annual tax: $1,431
Effective tax rate: 0.57%
Assessment ratio: 100% of market value
Reassessment cycle: varies (many decades old)

The Reassessment Problem

Delaware's most notable property tax feature is its refusal to reassess. Most properties are still assessed at values from 30-50 years ago:

Sussex County: Last reassessed in 1974
Kent County: Last reassessed in 1987
New Castle County: Last reassessed in 1983

This creates significant inequities -- two identical homes can have vastly different assessed values depending on when they were last sold or improved. Legal challenges to force reassessment have been filed periodically.

School Property Tax Credit

Delaware offers a Senior School Property Tax Credit of up to $500 for homeowners 65+. This directly reduces the school portion of your property tax bill. No income limit applies for the basic credit. Apply through the Delaware Division of Revenue.

No Sales Tax Offset

Delaware has no sales tax, which is why the state can maintain low property tax rates. However, this means the state relies more heavily on income taxes and business entity fees. Property taxes remain low by design -- the state constitution limits the state's ability to impose a statewide property tax.

Transfer Tax Instead of Reassessment

Because Delaware rarely reassesses, it relies on a 4% real estate transfer tax (split between buyer and seller) to capture value when properties change hands. This is one of the highest transfer taxes in the nation and effectively serves as a one-time property tax adjustment at sale.

Appeal Process

Appeals go to the county Board of Assessment Review. Deadlines vary by county -- typically you have a window in spring after assessment notices are mailed. Given that assessments are decades old, the strongest appeal argument is often demonstrating that your property's condition has deteriorated significantly from the base year assumptions.

Check Your 2026 Delaware Assessment

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Delaware Appeal Process

Filing deadline: Varies by county
File with: Board of Assessment Review
Evidence needed: Comparable sales, property condition photos, record corrections

2026 Action Checklist

Review your assessment notice when it arrives
Verify all exemptions are applied (homestead, senior, veteran)
Compare your assessed value to recent comparable sales
File your appeal by Varies by county if over-assessed
Check your property record for errors (square footage, features, classification)

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