Overview
Delaware is a small state with no sales tax and low property taxes, making it attractive for retirees and those from high-tax neighbors. Wilmington provides access to Philadelphia while the beaches draw vacation home buyers. The state's corporate-friendly laws have created a business services hub.
Delaware Real Estate Market
Northern Delaware (Wilmington area) serves as affordable Philadelphia suburbs with strong demand from PA migrants. The beach communities (Rehoboth, Bethany, Lewes) have seen tremendous appreciation as second-home markets. Dover provides the most affordable options as the state capital.
Property Taxes in Delaware
Delaware has very low property taxes, one of the lowest rates in the nation.
Average effective rate: 0.57%
Annual tax on median home: ~$2,024
Senior exemption: School tax exemption for those 65+
First-Time Buyer Programs
DSHA Programs: Delaware State Housing Authority offers:
- First-Time Homebuyer Program - Below-market rates
- Welcome Home Grant - Down payment assistance
- Preferred Plus - Additional assistance
Closing Costs in Delaware
Delaware closing costs are moderate, typically 2-3% of purchase price.
Common costs include:
- Title insurance: Based on purchase price
- Transfer tax: 4% split (typically 2.5% seller, 1.5% buyer)
- Recording fees: County-dependent
Frequently Asked Questions
Delaware offers no sales tax, low property taxes, and relatively affordable housing near major metros. Many Philadelphia and New Jersey residents relocate to reduce taxes while maintaining regional access.
Rehoboth, Bethany, and Lewes beaches have seen strong appreciation and rental demand. They serve as DC/Baltimore/Philadelphia vacation destinations. High season rentals can offset carrying costs.
Delaware has a 4% transfer tax, typically split between buyer and seller. The seller usually pays 2.5% and buyer pays 1.5%, but this is negotiable. First-time buyers may qualify for reduced rates.