Quick answer
The median Delaware home ($371,600) costs about $2,744 a month with 10% down at the 7.24% national average rate, helped by a low 0.47% effective property tax rate. The catch is at closing: the state realty transfer tax of 2.5% — 3% where no local tax applies — is the highest statewide rate in the country, on top of any county or town tax, and is usually split with the seller. First-time buyers get up to $2,000 off their share, and DSHA adds 0% second mortgages of up to 5% of the loan.
Key facts
$2,000
First-time buyer reduction, up to
Delaware Division of Revenue: First-Time Home Buyer Tax Credit · Oct 29, 2026
0.47%
Effective property tax rate
US Census Bureau, American Community Survey 2024 1-year · 2024 ACS 1-year
73.8%
Homes lived in by their owners
US Census Bureau, American Community Survey 2024 1-year · 2024 ACS 1-year
$371,600
Median home value in Delaware
US Census Bureau, American Community Survey 2024 1-year · 2024 ACS 1-year
Delaware’s realty transfer tax
Delaware’s state realty transfer tax is 2.5% of the price where a county or municipality also charges a transfer tax, and 3% where none does. Local taxes come on top, so the combined rate depends on the town. Buyer and seller typically split the total equally, although the contract can say otherwise.
| Amount | |
|---|---|
| State tax at 2.5% | $9,290 |
| Buyer’s half | $4,645 |
| First-time buyer reduction | −$1,858 |
| First-time buyer’s share of the state tax | $2,787 |
| State tax at 3% (no local tax) | $11,148 |
Add the county or town tax and the CFPB’s typical 2%–5% of the price for lender, title and prepaid costs. The closing cost estimator splits the state tax for you.
The first-time buyer transfer tax cut
If you have never held a direct legal interest in residential real estate and will make this home your principal residence, Delaware cuts your share of the state transfer tax by 0.5% of the price — for most buyers from 1.25% to 0.75% of the price. The reduction applies to the first $400,000 of value, so it is capped at $2,000; on the median home it is worth $1,858. You claim it at closing; eligible buyers who paid the full rate can ask the Division of Revenue for a refund.
Delaware’s definition is stricter than the “no home in 3 years” rule many loan programs use: owning a home at any point disqualifies you. See who counts as a first-time buyer.
Low property taxes in a state of owners
Census data put the median Delaware property tax bill at $1,750 a year, an effective rate of 0.47% — the 8th-lowest among the states and DC. On the median home that is about $1,747 a year, against $3,307 at the national ratio of 0.89%. Delaware also stands out for ownership: 73.8% of occupied homes are owner-occupied, the 2nd-highest share in the country and above the US share of 65.3%.
Bills come from the county, the school district and, in towns, the municipality, so ask for the latest tax statement on any home you consider.
Payment on a median Delaware home
$371,600 home, 10% down, 30-year fixed at 7.24%
| Monthly cost | Amount |
|---|---|
| Principal and interest on $334,440 | $2,279 |
| Property tax at 0.47% | $146 |
| Homeowners insurance (national average, $4.90 per $1,000) | $152 |
| PMI (midpoint of Freddie Mac’s typical range) | $167 |
| Total | $2,744 |
On the median household income of $87,534, Freddie Mac’s 30% guideline allows $2,188 a month — enough for about $296,000 with 10% down, $75,600 below the median home value. Test other prices in the mortgage payment calculator or start from your income in the affordability calculator.
DSHA Welcome Home, Open Door and the 0% seconds
The Delaware State Housing Authority (DSHA) offers 30-year fixed first mortgages through participating lenders, each with a minimum credit score of 620; borrowers at 659 or below must complete housing counseling.
| Option | What it is | Works with |
|---|---|---|
| Welcome Home | First mortgage for first-time buyers, below-market rate | — |
| Open Door | First mortgage for first-time and repeat buyers | — |
| First State | 0% second mortgage of 3% of the first mortgage | Welcome Home, Open Door |
| Keys4You | 0% second mortgage of 4% | Welcome Home, Open Door |
| Take5 | 0% second mortgage of 5% | Welcome Home only |
| Diamond in the Rough | 0% second of 5% for homes needing minor repairs (FHA 203(k) limited) | Welcome Home only |
The seconds have no monthly payment; you repay them when you sell, refinance or transfer the home, or stop living in it. In New Castle County, Welcome Home is limited to household incomes of $122,700 for one or two people (Open Door: $147,240), and to prices of $659,385; Kent and Sussex limits are lower, and targeted areas allow more. The median Delaware home is below the New Castle price limit.
DSHA second mortgage on the median home
FHA first mortgage: $358,594. First State would add $10,758, Keys4You $14,344 and Take5 $17,930. A first-time buyer needs about $23,225 for the FHA down payment, low-end closing costs and their share of the state transfer tax — Take5 alone would cover about 77% of it.
Compare Delaware’s options with federal ones in the first-time buyer programs guide.
Frequently asked questions
How much is the transfer tax in Delaware?
The state realty transfer tax is 2.5% of the price where a local transfer tax also applies and 3% where none does, plus any county or town tax. Buyer and seller typically split it. On the median home the state portion at 2.5% is about $9,290.
Do first-time home buyers pay less transfer tax in Delaware?
Yes. Buyers who have never owned a home get their share of the state tax cut by 0.5% of the price on the first $400,000 of value, worth up to $2,000. It is claimed at closing.
What is the property tax rate in Delaware?
Census data put Delaware’s effective rate at 0.47% of home value, with a median bill of $1,750 a year — the 8th-lowest rate among the states and DC.
Does Delaware have down payment assistance?
DSHA offers 0% second mortgages of 3%, 4% or 5% of the first mortgage with its Welcome Home and Open Door loans. They have no monthly payment and are repaid when you sell or refinance.
What credit score do I need for a DSHA loan?
At least 620. Borrowers with scores of 659 or below must also complete housing counseling.
Sources
- Freddie Mac Primary Mortgage Market Survey — 30-year fixed rate, national weekly average (Week of Oct 29, 2026)
- US Census Bureau, American Community Survey 2024 1-year — Median value of owner-occupied homes (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Median household income (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Effective property tax rate (median taxes ÷ median home value); Median real estate taxes paid by homeowners (2024 ACS 1-year)
- Freddie Mac Research — Average homeowners insurance premium per $1,000 of home value (2023 data)
- Freddie Mac My Home — Typical PMI cost, low end; Typical PMI cost, high end (Oct 28, 2026)
- Delaware Division of Revenue: First-Time Home Buyer Tax Credit — Delaware first-time buyer cut in the buyer’s share of the state realty transfer tax (share of the price); Delaware first-time buyer transfer tax reduction, capped at; Delaware state realty transfer tax where no local transfer tax applies (Oct 29, 2026)
- CFPB — Minimum FHA down payment; Typical closing costs, low end (share of purchase price); Typical closing costs, high end (share of purchase price) (Oct 28, 2026)
- Delaware State Housing Authority: Homeownership Loans — DSHA First State 0% second mortgage (share of the first mortgage); DSHA Keys4You 0% second mortgage (share of the first mortgage); DSHA Take5 0% second mortgage (share of the first mortgage) (Sep 23, 2026)
- Freddie Mac My Home — Freddie Mac guidance: housing costs below this share of gross income (Jan 22, 2026)
- 42 U.S.C. 12704(14) — First-time homebuyer: has not owned a home in the past (HUD/HOME statute) (Oct 28, 2026)
- US Census Bureau, American Community Survey 2024 1-year — Effective property tax rate (median taxes ÷ median home value) (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Share of occupied homes lived in by their owners (2024 ACS 1-year)
- US Census Bureau, American Community Survey 2024 1-year — Share of occupied homes lived in by their owners (2024 ACS 1-year)
Last reviewed Figures are checked against the sources above. Read our editorial policy. This page is general information, not financial advice — see the disclaimer.