Buying a Home in Delaware in 2026
Delaware's median home price is near $$396,000 in 2026, just under the national median. The state's biggest draw is tax structure: no statewide sales tax and no state-level property tax, with counties setting their own rates.
Wilmington anchors New Castle County, the priciest of the three counties and a popular landing spot for buyers working in Philadelphia. Dover offers the most affordable entry point of the three cities, while Newark benefits from the University of Delaware. Sussex County's beach towns command a premium and behave like a second-home market.
Delaware Property Taxes and Your Monthly Payment
Delaware's effective property tax rate is only about 0.50%, so a $$396,000 home carries roughly $$1,980 a year in tax, or $$165 a month. Rates differ by county: New Castle runs higher, Sussex lower.
There is no homestead exemption in Delaware. After a recent statewide reassessment, lawmakers passed relief in 2025 for homeowners facing higher bills, so new buyers should confirm the current assessed value rather than relying on old tax records for a listing.
First-Time Homebuyer Programs in Delaware
The Delaware State Housing Authority (DSHA) offers the First State Home Loan with down payment assistance for qualifying buyers, plus the Smarter Buy program aimed at first-time purchasers. First-time buyers also get a break on the realty transfer tax, which is a meaningful saving in Delaware.
Delaware Monthly Payment Example
Take the median-priced Delaware home at $$396,000. Put 20% down ($$79,200) and finance $$316,800 over 30 years at 6.35%. The monthly math:
| Item | Monthly Amount |
| Home price | $396,000 |
| Down payment (20%) | $79,200 |
| Loan amount | $316,800 |
| Principal and interest (6.35%, 30-yr fixed) | $1,971 |
| Property tax | $165 |
| Homeowners insurance | $92 |
| Total monthly payment | $2,228 |
The tax line is light at $$165 a month, so most of the $$2,228 monthly payment is principal and interest. That is the trade Delaware makes: low carrying costs, but a hefty transfer tax at the closing table.
Closing Costs and Transfer Taxes in Delaware
Closing costs run 2% to 5% of the price, but Delaware's 2.5% realty transfer tax is the number to watch. It is typically split between buyer and seller, so a buyer often pays 1.25%, or about $4,950 on a $$396,000 home. First-time buyers qualify for a reduced rate, which trims that figure.
Frequently Asked Questions
What is the median home price in Delaware in 2026?
Near $$396,000 statewide. New Castle County runs highest, Kent County lowest, with Sussex beach towns priced like a separate market.
How much is property tax on a $$396,000 Delaware home?
Roughly $$1,980 a year at the 0.50% effective rate, or $$165 a month. County rates vary, so confirm the specific county.
Does Delaware have a first-time homebuyer program?
Yes. DSHA's First State Home Loan and Smarter Buy programs offer down payment assistance, and first-time buyers pay a reduced realty transfer tax.
What is the Delaware realty transfer tax?
2.5% of the price, usually split 1.25% buyer and 1.25% seller by custom. First-time buyers get a reduced rate.
Is there a homestead exemption in Delaware?
No. Delaware does not offer a homestead exemption, though 2025 legislation provided relief for homeowners hit by the statewide reassessment.
Related Calculators
Factor the payment into your overall budget with the Delaware Paycheck Calculator. For the big picture, start with the Mortgage Calculator, or compare nearby markets with the Maryland Mortgage Calculator, Connecticut Mortgage Calculator, and Massachusetts Mortgage Calculator.
Sources: Zillow ZHVI state medians (Feb 2026), Tax Foundation property tax analysis, Delaware State Housing Authority (DSHA). Figures reviewed for 2026. This calculator provides an estimate for planning purposes and is not financial advice.