Delaware Property Tax

Delaware property taxes are based on the value of land and buildings. These taxes are a significant source of revenue for the state. The property tax rate varies by county and can vary by type of property. It is important to understand the property tax process and how it is calculated to avoid any surprises. In addition to property taxes, Delaware also has a graduated state individual income tax and levies a gross receipts tax on most businesses. The latter tax is based on the company’s gross receipts, including sales, delivery costs, and other expenses.

Inheritance taxes are also a part of the property tax in Delaware. These taxes are imposed on the value of property that is inherited from a deceased person or corporation. To determine the amount of inheritance tax owed, the value of the estate must be multiplied by the state’s property tax rate. However, there are some exemptions available for certain types of property. A tax professional can help you determine the correct tax rate and the applicable exemptions.

How to Calculate Delaware Property Tax?

If you own property in Delaware, it’s important to understand your responsibilities and how to pay them. Failure to do so can result in tax liens or foreclosure, and you may be subject to additional fees and interest. To avoid these penalties, you should prioritize your property tax payments and seek guidance from tax professionals or financial advisors. Delaware counties reassess properties periodically, with different schedules for each county:

• Kent County: Every 10 years, most recently in 1987.
• New Castle County: Every 3 years, most recently in 1983.
• Sussex County: Every 8 years, most recently in 1974.

You can find your assessed value online through your county’s website or assessor’s office. The calculation of property taxes in Delaware is based on the property’s value and tax rate. The value is determined through an assessment or appraisal process, and the county’s assessor sets the rate. The resulting amount is multiplied to determine the property’s tax owed. Additional factors that influence the calculation of property tax include exemptions, deductions, and changes to tax rates.

You can find your property tax information and payment history online via the Delaware Department of Revenue. The site also offers an interactive property tax estimator tool, which allows you to select the county where your home is located and use averages from that county to calculate your approximate yearly property tax.

Delaware Property Tax Due Dates

Delaware property tax payments are due by the last day of September each year. If the last day of September falls on a weekend or holiday, taxes are due the next business day. A penalty of 6% on county line items and 5% on school line items is charged if the taxes are not paid by the end of September.

If you are late in paying your property tax, you can still avoid penalties by submitting a payment to the county treasurer. You can also file a protest with the assessor if you believe your property has been overvalued. However, you must file an appeal within the allotted time frame or lose your right to contest your property taxes. In extreme cases, unpaid taxes may result in the county placing a lien on your property and selling it at a tax foreclosure sale.

Delaware Property Tax Exemption

Whether you are an investor, property manager, or landlord, you need to understand how Delaware’s property tax system works. Knowing how the process is calculated and what exemptions are available is important. There are several online property tax calculators that can help you determine your estimated taxes, but they should be used as a guide.

The state offers a senior property tax credit. This program reduces a homeowner’s school property tax by up to $500 per year. Eligibility requirements include meeting age and income requirements and owning the home as your primary residence. To apply, you must submit an application and provide proof of age, such as a driver’s license or birth certificate, along with income documentation, such as tax returns and Social Security statements.