Most states measure their transfer tax in fractions of a percent. Delaware measures it in whole ones. The combined realty transfer tax here reaches 4%, the highest rate in the country. On a $400,000 sale, that is $16,000 handed over at the settlement table for the privilege of recording a deed.
Delaware's own statewide median sale price is $398,585, so the math barely softens: 4% of that is $15,943.
Hold that next to everything else. Ordinary closing costs here run about 2% to 4% of the price, or $7,972 to $15,943 at the median, and that range excludes the transfer tax. At the top of it, Delaware's transfer tax roughly equals every other closing cost combined: lender fees, title insurance, appraisal, attorney, prepaids, all of it.
Two details soften the picture. The 4% is two taxes stacked, and it is customarily split with the seller. For how the underlying fees work anywhere in the country, start with our line-by-line breakdown of what closing costs actually are.
A note before you start: this is general education, not financial, legal, or tax advice. Every figure below is a statewide number from CalculatorByState's sourced dataset, and your county, lender, attorney, and contract will all move the total. The local portion of Delaware's transfer tax is set county by county, so the only rate that truly matters is the one for the address you are buying. Your Loan Estimate and Closing Disclosure are authoritative; use this to sanity-check them, not to replace them.
1. What closing costs actually run in Delaware
Set the transfer tax aside. A 2% to 4% range against Delaware's $398,585 median gives you roughly $7,972 to $15,943, midpoint near $11,958. At a rounder $350,000 price, the same range is $7,000 to $14,000.
The narrower sourced figure is that Delaware buyers typically pay about 2.99%, or roughly $11,918 on $398,585 — almost exactly the midpoint. Neither number includes agent commissions or the realty transfer tax.
So the honest all-in at the median, for a buyer putting 20% down and splitting transfer tax by custom: $79,717 down, about $11,958 in closing costs, and a $7,972 transfer tax share. Roughly $99,647 in cash, financing $318,868 at current rates of 6.65% on a 30-year fixed or 5.95% on a 15-year.
See your all-in Delaware closing costs2. The highest transfer tax in the country
Delaware's realty transfer tax is a tax on the transfer of the deed, collected at settlement and assessed on the property's value rather than your loan. Under Delaware Code Title 30, Chapter 54, the state rate is 2.5%. It rose from 1.5% effective August 2017, which is why older guidance online understates it badly.
On top of that, counties and municipalities may impose up to another 1.5%. Where the full local rate has been enacted, the combined bill is 4%. That is the number Delaware agents quote, and the one to budget against unless you have confirmed otherwise for the address.
At the $398,585 median, the pieces break down like this:
- State portion at 2.5%: $9,965
- Local portion at 1.5%: $5,979
- Combined at 4%: $15,943
At a $350,000 price, the combined 4% is $14,000.
None of this gets negotiated away with the county, and all of it is knowable in advance. What is negotiable is which side of the table pays. Transfer tax is the biggest reason closing costs swing from state to state, a point covered in why the same house costs wildly different amounts to close on in different states.
3. Who pays it, and the first-time buyer credit
Under the standard Delaware Association of Realtors contract, realty transfer tax is split 50/50 between buyer and seller. At the median, half of $15,943 is $7,972 apiece.
That half is worth staring at: $7,972 is almost exactly the entire bottom of Delaware's ordinary closing-cost range. One line item, already halved, can equal a lean buyer's whole closing bill somewhere else.
The split is a contract default, not a law. Delaware's Division of Revenue describes the buyer's customary share of the state portion as 1.25%, the 2.5% state tax cut in half, so the convention runs deep. But terms get negotiated. In a slow market you can ask the seller to carry more. On a hot listing, absorbing a larger share is a lever some buyers pull instead of raising their price, because it costs the seller real money without touching the appraised value.
First-time buyers get a real, specific discount. Delaware's Division of Revenue reduces a qualifying first-time buyer's state transfer-tax share by 0.5 percentage points — 1.25% down to 0.75% — on the first $400,000 of price, capped at $2,000 total. At the $398,585 median that's $1,993 back: the state half drops from $4,982 to $2,989, bringing the full buyer-side transfer tax (state plus the unaffected local half) from $7,972 down to about $5,979.
To qualify: you must never have held a direct legal interest in residential real estate anywhere, must intend to occupy the home within 90 days of closing, and every buyer on the deed must qualify — one disqualified co-buyer disqualifies the purchase. The credit reduces the rate at closing rather than refunding money later; your settlement attorney claims it on the transfer tax forms, so raise it before you sign a contract. See first-time home buyer programs explained for what else to look for.
4. Delaware is an attorney-required state
This one is law, not custom. Delaware requires that all real estate settlements on Delaware property be conducted by a Delaware-licensed attorney, following a 2000 Delaware Supreme Court decision. That covers refinances as well as purchases; settling without a Delaware law license is unauthorized practice of law.
Three practical consequences:
- The attorney fee is a certainty, not a variable. Where a title company handles closing alone, a buyer can skip that line. You cannot here.
- Required does not mean fixed. Ask two or three settlement attorneys what they charge before you commit.
- The license must be a Delaware one. A Maryland, Pennsylvania, or New Jersey attorney cannot conduct your settlement.
You do get contract review in the bargain, real value on an estate sale or a messy title history. Title insurance is separate from the attorney's fee; see what title insurance actually covers and who it protects.
5. No mortgage recording tax, which is a real break
Some states charge a separate tax on your loan size when the mortgage is recorded, stacked on top of the transfer tax on the sale price. Delaware does not. There is no mortgage recording tax and no intangible tax here. At the median with 20% down you are financing $318,868, and none of that drives a percentage-based government charge.
It changes the refinance math too: no deed transfer means no transfer tax, and no mortgage tax on the new loan keeps the government-fee side small. The one cost you can't avoid is the attorney — the settlement requirement applies to refinances too.
6. How to lower the bill before you sign
- Confirm the local transfer tax rate for the exact address. The state's 2.5% is universal; the add-on of up to 1.5% is not. That difference is up to $5,979 at the median.
- Negotiate the split, not just the price. At $7,972 a side, moving even a quarter of that share beats most fee negotiations you will ever win.
- Ask about the first-time buyer credit early, while it can still shape your offer.
- Get quotes from more than one settlement attorney. The requirement is mandatory; the price is not.
- Shop lenders, not just rates. Origination and underwriting charges differ on identical loans, and which fees you can push back on and which you cannot sorts the negotiable from the fixed.
Do not forget prepaids either. Funding your property tax and insurance escrow is real cash due at settlement, separate from every fee above; how escrow accounts get funded walks through that bucket.
Frequently asked questions
How much are closing costs in Delaware?
About 2% to 4% of the purchase price, which at Delaware's $398,585 median is roughly $7,972 to $15,943, midpoint near $11,958. Buyers here typically pay about 2.99%, or roughly $11,918 at that price. Those figures exclude agent commissions and the realty transfer tax.
Does Delaware really have the highest transfer tax in the country?
Yes. The combined realty transfer tax reaches 4%, the highest state rate in the country. That is $16,000 on a $400,000 sale, or $15,943 at Delaware's $398,585 median.
Why is Delaware's transfer tax 4% when the state rate is 2.5%?
Because two taxes stack. The state rate is 2.5% under Delaware Code Title 30, Chapter 54, and counties and municipalities may add up to another 1.5% on the same sale. Where the full local rate has been enacted, the combined bill is 4%.
Does the buyer or the seller pay transfer tax in Delaware?
Customarily it is split 50/50, so at the median each side pays about $7,972 of the $15,943 total. That split comes from the standard Delaware Association of Realtors contract rather than from statute, so it is negotiable.
Do I need a lawyer to close on a house in Delaware?
Yes. Delaware requires all settlements on Delaware property to be conducted by a Delaware-licensed attorney, per a 2000 Delaware Supreme Court decision. It covers refinances as well as purchases, and an attorney licensed in a neighboring state does not qualify.
Is there a first-time home buyer transfer tax credit in Delaware?
Yes. It cuts a qualifying first-time buyer's state transfer-tax share from 1.25% to 0.75% on the first $400,000 of price, capped at $2,000. At the median that's about $1,993 back, bringing buyer-side transfer tax from $7,972 to roughly $5,979. You must never have held a direct interest in residential real estate, plan to occupy within 90 days, and every buyer on the deed must qualify.
Does Delaware charge a mortgage recording tax?
No. Delaware has no mortgage recording or intangible tax, so your loan size does not trigger a percentage-based government charge. At the median with 20% down you would finance $318,868 with no loan-based tax attached.
How much cash do I need to close on a Delaware home?
At the $398,585 median with 20% down: $79,717 down, roughly $11,958 in closing costs at the midpoint, and a customary $7,972 transfer tax share, for about $99,647. Closing costs are separate from the down payment; ways to reduce what you bring to closing covers the levers.
What to do next
Run your actual purchase price through Delaware's payment calculator, which folds in the state's property tax and insurance figures so you see a real monthly number. Then work backward from the cash you have, budgeting 4% for transfer tax and taking half as your share until the contract says otherwise.
- Delaware mortgage payment calculator
- Delaware affordability calculator
- Delaware first-time buyer calculator
- How to buy a home in Delaware
- First-time home buyer programs explained
Every figure on this site is sourced and dated; see where each comes from on our methodology page.
The figures above are illustrations drawn from CalculatorByState's sourced dataset. They are statewide numbers, not county-level quotes, and Delaware's local transfer tax add-on in particular is set county by county. Your own costs depend on your address, lender, settlement attorney, and contract. For advice specific to your situation, consult a licensed real estate professional or attorney in Delaware.