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HB286 • 2025

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO DECREASING THE STATE'S REALTY TRANSFER TAX RATE OF TAXATION.

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO DECREASING THE STATE'S REALTY TRANSFER TAX RATE OF TAXATION.

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Yearick
Last action
2026-06-11
Official status
House Appropriations 6/11/26
Effective date
Not listed

Plain English Breakdown

The official bill text excerpt was truncated before showing the full details for Section 4, though the pattern suggests a continued rate reduction.

HB286: Lowering Delaware Realty Transfer Tax Rates

This bill removes state realty transfer taxes for residential properties valued at $350,000 or less and lowers the tax rate by a quarter percent each year over four years for homes valued between $350,000 and $500,000.

What This Bill Does

  • Removes state realty transfer taxes entirely for residential properties with a value of $350,000 or less.
  • Lowers the tax rate by 1/4% per year over four years for homes valued between $350,000 and $500,000.
  • Sets specific new tax rates based on whether local counties have enacted their own full transfer taxes.
  • Requires that any remaining state realty transfer tax be split equally between the seller and buyer.

Who It Names or Affects

  • People buying or selling residential homes in Delaware valued at $500,000 or less.
  • Local municipalities and counties where property is located if they have enacted local realty transfer taxes.
  • The State of Delaware regarding the collection of revenue from these transactions.

Terms To Know

Realty Transfer Tax
A fee paid to the state when ownership of a property is transferred or sold.
Conveyance
The legal act of transferring title or ownership of real estate from one person to another.

Limits and Unknowns

  • This bill only applies to residential properties; it does not mention commercial property.
  • The tax reduction for homes between $350,000 and $500,000 happens gradually over four years rather than all at once.
  • The final effective date of these changes is not listed in the provided text.

Bill History

  1. 2026-06-11 Delaware General Assembly

    Assigned to Appropriations Committee in House

  2. 2026-06-10 Delaware General Assembly

    Reported Out of Committee (Revenue & Finance) in House with 3 Favorable, 7 On Its Merits

  3. 2026-01-29 Delaware General Assembly

    Introduced and Assigned to Revenue & Finance Committee in House

Official Summary Text

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO DECREASING THE STATE'S REALTY TRANSFER TAX RATE OF TAXATION.
For conveyances having a property value of less than $350,000, the state will not assess a realty transfer tax. This Act also reduces the State's rate of realty transfer tax by 1/4% per year for 4 years, for residential property conveyances having a property value of $350,000 to $500,000.

Current Bill Text

Read the full stored bill text 
Legislation Document

SPONSOR:

Rep. Yearick & Sen. Buckson

Rep. Michael Smith; Sen. Wilson

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 286

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO DECREASING THE STATE'S REALTY TRANSFER TAX RATE OF TAXATION.

BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF DELAWARE:

Section 1. Amend § 5402, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 5402. Rate of tax; when payable; exception [For application of this section, see 81 Del. Laws, c. 56, § 2 and 81 Del. C. 384, § 3].

(a)

(1)

Every person who makes, executes, delivers, accepts or presents for recording any document, except as defined or described in § 5401(5) of this title, or in whose behalf any document is made, executed, delivered, accepted or presented for recording shall be subject to pay for and in respect to the transaction, or any part thereof, a realty transfer tax at the rate of 3 percent of the value of the property represented by such document, unless the municipality or county where the property is located has enacted the full 1½ percent realty transfer tax authorized by § 1601 of Title 22 or § 8102 of Title 9, in which case 2 ½ percent, which tax shall be payable at the time of making, execution, delivery, acceptance or presenting of such document for recording. Said tax is to be apportioned equally between grantor and grantee.

(a)(2) For every residential property convenance having a property value of $350,000 or less, there shall be no realty transfer tax payable to the state.

(a)(3) For every residential property conveyance having a property value of more than $350,000 but less than $500,000, every person who makes, executes, delivers, accepts or presents for recording any document except as defined or described in § 5401(5) of this title, or in whose behalf any document is made, executed. delivered, accepted or presented for recording shall be subject to pay for and in respect to the transaction, or any part thereof, a realty transfer tax at the rate of 2 3/4 percent of the value of the property represented by such document, unless the municipality or county where the property is located has enacted the full 1 ½ percent realty transfer tax authorized by § 1601 of Title 22 or § 8102 of Title 9, in which case 2 1/4 percent, which tax shall be payable at the time of making, execution, delivery, acceptance or presenting of such document for recording. Said tax is to be apportioned equally between grantor and grantee.

Section 2. Amend § 5402, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 5402. Rate of tax; when payable; exception [For application of this section, see 81 Del. Laws, c. 56, § 2 and 81 Del. C. 384, § 3].

(a)

(1)

Every person who makes, executes, delivers, accepts or presents for recording any document, except as defined or described in § 5401(5) of this title, or in whose behalf any document is made, executed, delivered, accepted or presented for recording shall be subject to pay for and in respect to the transaction, or any part thereof, a realty transfer tax at the rate of 3 percent of the value of the property represented by such document, unless the municipality or county where the property is located has enacted the full

1½

percent realty transfer tax authorized by § 1601 of Title 22 or § 8102 of Title 9, in which case

2.25

2 1/2

percent, which tax shall be payable at the time of making, execution, delivery, acceptance or presenting of such document for recording. Said tax is to be apportioned equally between grantor and grantee.

(a)(2) For every residential property convenance having a property value of $350,000 or less, there shall be no realty transfer tax payable to the state.

(a)(3) For every residential property conveyance having a property value of more than $350,000 but less than $500,000, every person who makes, executes, delivers, accepts or presents for recording any document except as defined or described in § 5401(5) of this title, or in whose behalf any document is made, executed. delivered, accepted or presented for recording shall be subject to pay for and in respect to the transaction, or any part thereof, a realty transfer tax at the rate of 2 1/2 percent of the value of the property represented by such document, unless the municipality or county where the property is located has enacted the full 1 ½ percent realty transfer tax authorized by § 1601 of Title 22 or § 8102 of Title 9, in which case 2 percent, which tax shall be payable at the time of making, execution, delivery, acceptance or presenting of such document for recording. Said tax is to be apportioned equally between grantor and grantee.

Section 3. Amend § 5402, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 5402. Rate of tax; when payable; exception [For application of this section, see 81 Del. Laws, c. 56, § 2 and 81 Del. C. 384, § 3].

(a)

(1)

Every person who makes, executes, delivers, accepts or presents for recording any document, except as defined or described in § 5401(5) of this title, or in whose behalf any document is made, executed, delivered, accepted or presented for recording shall be subject to pay for and in respect to the transaction, or any part thereof, a realty transfer tax at the rate of 3 percent of the value of the property represented by such document, unless the municipality or county where the property is located has enacted the full 1½ percent realty transfer tax authorized by § 1601 of Title 22 or § 8102 of Title 9, in which case 2 1/2 percent, which tax shall be payable at the time of making, execution, delivery, acceptance or presenting of such document for recording. Said tax is to be apportioned equally between grantor and grantee.

(a)(2) For every residential property convenance having a property value of $350,000 or less, there shall be no realty transfer tax payable to the state.

(a)(3) For every residential property conveyance having a property value of more than $350,000 but less than $500,000, every person who makes, executes, delivers, accepts or presents for recording any document except as defined or described in § 5401(5) of this title, or in whose behalf any document is made, executed. delivered, accepted or presented for recording shall be subject to pay for and in respect to the transaction, or any part thereof, a realty transfer tax at the rate of 2 1/4 percent of the value of the property represented by such document, unless the municipality or county where the property is located has enacted the full 1 ½ percent realty transfer tax authorized by § 1601 of Title 22 or § 8102 of Title 9, in which case 1 3/4 percent, which tax shall be payable at the time of making, execution, delivery, acceptance or presenting of such document for recording. Said tax is to be apportioned equally between grantor and grantee.

Section 4. Amend § 5402, Title 30 of the Delaware Code by making deletions as shown by strike through and insertions as shown by underline as follows:

§ 5402. Rate of tax; when payable; exception [For application of this section, see 81 Del. Laws, c. 56, § 2 and 81 Del. C. 384, § 3].

(a)

(1)

Every person who makes, executes, delivers, accepts or presents for recording any document, except as defined or described in § 5401(5) of this title, or in whose behalf any document is made, executed, delivered, accepted or presented for recording shall be subject to pay for and in respect to the transaction, or any part thereof, a realty transfer tax at the rate of 3 percent of the value of the property represented by such document, unless the municipality or county where the property is located has enacted the full 1½ percent realty transfer tax authorized by § 1601 of Title 22 or § 8102 of Title 9, in which case 2 1/2 percent, which tax shall be payable at the time of making, execution, delivery, acceptance or presenting of such document for recording. Said tax is to be apportioned equally between grantor and grantee.

(a)(2) For every residential property convenance having a property value of $350,000 or less, there shall be no realty transfer tax payable to the state.

(a)(3) For every residential property conveyance having a property value of more than $350,000 but less than $500,000, every person who makes, executes, delivers, accepts or presents for recording any document except as defined or described in § 5401(5) of this title, or in whose behalf any document is made, executed. delivered, accepted or presented for recording shall be subject to pay for and in respect to the transaction, or any part thereof, a realty transfer tax at the rate of 2 percent of the value of the property represented by such document, unless the municipality or county where the property is located has enacted the full 1 ½ percent realty transfer tax authorized by § 1601 of Title 22 or § 8102 of Title 9, in which case 1 1/2 percent, which tax shall be payable at the time of making, execution, delivery, acceptance or presenting of such document for recording. Said tax is to be apportioned equally between grantor and grantee.

Section 5. Section 1 of this Act shall become effective January 1, 2027.

Section 2 of this Act shall become effective January 1, 2028.

Section 3 of this Act shall become effective January 1, 2029.

Section 4 of this Act shall become effective January 1, 2030.

SYNOPSIS

For conveyances having a property value of less than $350,000, the state will not assess a realty transfer tax. This Act also reduces the State's rate of realty transfer tax by 1/4% per year for 4 years, for residential property conveyances having a property value of $350,000 to $500,000.