AN TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO THE REALTY TRANSFER TAX.

Taxes

Passed Legislature

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

Sponsor: K. Williams
Last action: 2026-06-11
Official status: House Appropriations 6/11/26
Effective date: Not listed

Plain English Breakdown

Checked against official source text during the last sync.

HB416: Lowering Delaware Realty Transfer Tax

This bill lowers the state's real estate transfer tax rate by one-quarter of a percent, effective January 1, 2027.

What This Bill Does

Decreases the standard realty transfer tax from 3% to 2.75% for most property transactions.
Lowers the reduced tax rate from 2.5% to 2.25% in areas where local governments have enacted their own full taxes.
Sets the effective date of these new lower rates as January 1, 2027.
Keeps the rule that buyers and sellers must split the cost of the tax equally.

Who It Names or Affects

People who buy or sell real estate in Delaware
Local governments with their own property transfer taxes

Terms To Know

Realty Transfer Tax: A fee paid to the state when ownership of land or buildings changes hands.
Grantor and Grantee: The person selling a property (grantor) and the person buying it (grantee).

Limits and Unknowns

This change only applies to transactions happening on or after January 1, 2027.
The bill does not explain how much money this tax cut will save buyers or sellers.

Bill History

2026-06-11 Delaware General Assembly
Assigned to Appropriations Committee in House
2026-06-10 Delaware General Assembly
Reported Out of Committee (Revenue & Finance) in House with 8 On Its Merits
2026-05-12 Delaware General Assembly
Introduced and Assigned to Revenue & Finance Committee in House

Official Summary Text

AN TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO THE REALTY TRANSFER TAX.
This Act decreases the realty transfer tax by ¼ of a percent.

Current Bill Text

Read the full stored bill text

Legislation Document

SPONSOR:

Rep. K. Williams & Sen. Walsh

HOUSE OF REPRESENTATIVES

153rd GENERAL ASSEMBLY

HOUSE BILL NO. 416

AN TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO THE REALTY TRANSFER TAX.

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) 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 ¾

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

2½

2 ¼

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.

(d) Every person who makes, executes, delivers, accepts or presents for recording any document defined or described in § 5401(5) of this title, or in whose behalf any such document is made, executed, delivered, accepted or presented for recording shall be subject to pay for and in respect to the transaction, or in any part thereof, a realty transfer tax at the rate of

2 ¾

2½

2 ¼

percent, which tax shall be payable as follows:

(1) The tax on the consideration attributed to the first year of the term shall be payable at the time of making, execution, delivery, acceptance or presenting of such document for

recording;

recording.

(2) The tax on the consideration attributed to each successive year of the term thereafter shall be paid annually to the Division of Revenue.

Section 2. This Act takes effect on January 1, 2027.

SYNOPSIS

This Act decreases the realty transfer tax by ¼ of a percent.