Living in Delaware? Here’s What You Really Need to Know About Property Taxes
If you have just made the move to Delaware, or you are thinking about buying a home there, you might be wondering why everyone keeps raving about how low the property taxes are. It’s not just the hype; compared to many states, Delaware offers homeowners a pretty sweet deal when it comes to annual tax bills. Even in a low-tax state, things can get confusing fast. With recent reassessments, local levies, and a mix of exemptions, understanding how your property taxes are calculated can go a long way toward saving you money.
Let’s break it down–a finance degree is required. From how your tax rate is determined to what programs might help you pay less, this guide covers everything you need to know about property taxes in Delaware in plain English.
Why Are the Property Taxes in Delaware So Low?
Delaware has earned a reputation for having some of the lowest property taxes in the entire country. On average, homeowners pay an effective property tax rate of around 0.55%, which is significantly lower than the national average. What makes Delaware unique is that there is no statewide property tax. Instead, all property taxes are handled at the local level by counties, school districts, municipalities, and special service districts. The result? A patchwork of different rates, but an overall lighter burden compared to other places.
Who’s Charging You and How is it Calculated?
In Delaware, property taxes are calculated based on the assessed value of your home, not the full market value. Here’s where it gets tricky: until recently, many countries were using assessments that hadn’t been updated in decades. There are assessments that date back to the 1970s or ’80s, which meant that taxes weren’t always aligned with a home’s true value. After a major legal push, all three countries in Delaware have started reassessing property values. These types of reassessments aim to bring things up to date and make the system fairer for homeowners. This can raise important questions, such as: Will my property taxes go up? Will they go down? The answer will depend not only on your home’s new value but also on how your local government adjusts its tax rate in response.
Reassessments Are Rolling Out–Here’s Why That Matters
Reassessments are designed to realign property values so that taxes reflect current market conditions. But the change isn’t always simple. If your home has increased significantly in value, you may see your assessed value jump, particularly if the old number was out of date. The good news is that counties are required to adjust tax rates downward to prevent a huge spike in total revenue. However, school districts and municipalities don’t always have the same restrictions. This means even if your county keeps things level, your local school or city tax can still increase. It’s a good idea to pay attention to where your total tax bill is going and which portions are rising.
Property Tax Tips Every Delaware Homeowner Should Know
Even though the system might seem low-key compared to other states, it still pays to stay on top of your property taxes. Here are some research-backed tips to help you make the most of what Delaware offers:
- Check Your Assessment During Reassessment Years: Compare your new assessed value with other similar homes in your area. If it feels way off, you might have grounds to file an appeal.
- Know Your Tax Breakdown: Your bill includes county, school, and sometimes city or district charges. If one portion jumps unexpectedly, don’t be afraid to ask questions or attend local meetings.
- Apply Early For Exemptions: Many tax relief programs have deadlines in the spring or early summer. Missing them means you’ll have to wait another year to save.
- Watch How School Districts Vote: In Delaware, school boards can approve tax increases without a full reassessment. Stay informed about school referendums or board decisions in your area.
- Don’t Forget to Appeal: If you think your new assessed value is incorrect, file a formal appeal. There’s a process, and you might need documentation, but it could be well worth the effort.
Final Thoughts: Low Doesn’t Mean You Shouldn’t Pay Attention
Delaware’s low property taxes are one of the state’s best-kept secrets, but that doesn’t mean you should ignore them. With property values rising and reassessments rolling out, understanding how your taxes are calculated and where your money is going is more important than ever. By knowing your rights, applying for exemptions, and staying proactive about reassessments and local changes, you can make sure you’re only paying your fair share, and not a dollar more. In a state that gives homeowners an edge, these small moves can help stretch your budget even further. Trust your local real estate professionals at The Jeffrey Fowler Group to guide you in finding and settling down in the home of your dreams in the many beautiful single-family homes in Sussex County neighborhoods today.