Behind on Property Taxes in Delaware?

Back Taxes in Delaware: Your Options

This page explains what happens in Delaware when property taxes on land go unpaid. Delaware's three counties, New Castle, Kent and Sussex, collect county and school property taxes, and towns may bill their own taxes too. The page covers the due dates, the late penalties, the court process called monition, the sheriff sale, redemption after the sale and the choices you have.

Delaware does not sell tax lien certificates. A county collects back taxes by getting a court judgment and having the sheriff sell the land. Even after a sale, the owner has a short time to redeem. Until then, you can pay off the taxes or sell the land yourself. This page is general information, not legal or tax advice. For your own case, ask your county finance office or a Delaware attorney.

When Delaware property taxes are due

State law sets the due dates by county. Taxes are due July 1 in New Castle County, June 1 in Kent County and July 1 in Sussex County (9 Del. C. 8601). The county must mail a tax statement within 30 days after taxes are due, but not getting one does not excuse late payment (9 Del. C. 8602).

Each county sets the last day to pay without a penalty. Check the date on your bill or the county website. If the land is inside a town, the town may send a separate bill with its own dates.

Penalties for late payment

New Castle County adds a penalty of 6 percent of the current charge once the payment deadline passes, then 1 percent of the unpaid principal on the first day of each month until paid. Kent and Sussex Counties add a penalty of 1.5 percent a month on taxes paid after September 30 (9 Del. C. 8604).

A county can set up payment plans, but the state-required plan is for a primary home zoned residential whose bill rose by $300 or more (9 Del. C. 8604). Vacant land does not qualify for that plan. Ask the county if it offers any other arrangement.

What the county does next: monition and the sheriff sale

Delaware law lets a county collect back taxes through the monition method (9 Del. C. 8721). The steps are:

• The county files a praecipe with the Prothonotary of the Superior Court, and a judgment is entered for the taxes (9 Del. C. 8722).
• The sheriff posts the monition on the property. That posting counts as notice to the owner and anyone with an interest (9 Del. C. 8724).
• If the judgment and costs are not paid within 20 days after the sheriff's return, the county can ask for a writ ordering the sheriff to sell the land (9 Del. C. 8725).
• The sheriff sells the land at public sale. The Superior Court must approve the sale. If no one redeems, the buyer asks the court for a sheriff's deed (9 Del. C. 8728).

Redemption after a sheriff sale

After a monition sale, the owner can redeem within 60 days from the day the court approves the sale. You pay the buyer the purchase price plus 15 percent of it, plus all costs of the case. If the buyer will not accept the money or cannot be found, you can pay it into the court (9 Del. C. 8729).

Kent and Sussex Counties also have an older tax sale method. Under it, no deed is made until 1 year after the sale, and the owner can redeem by paying the costs, the purchase price, 20 percent interest on it and the deed expenses. Money left after paying the taxes and sale costs goes to the owner (9 Del. C. 8776 and 8779). Ask the county which method applies to your parcel.

Before a sale, paying the full judgment, taxes, penalties and costs stops the process. Once the sale is approved, the 15 percent premium makes redemption costly, so it is best to act earlier.

Your options if you are behind

Your choice depends on what you owe and what you want to do with the land.

• Pay the county in full, with penalties, before a monition is filed or before the sale.
• Ask the county about a payment arrangement.
• Sell the land. The back taxes are paid from the sale price at closing.
• Do nothing. The land can be sold at a sheriff sale, and you would have only 60 days after the court approves the sale to redeem.

Selling land with back taxes in Delaware

You can sell land with back taxes until a sheriff's deed is delivered. At closing, the settlement attorney gets a payoff from the county, and any town that bills taxes, and pays it from the sale price. If a monition has been filed, the payoff will include the court costs. You get the rest.

EasyLotBuyer buys vacant land in Delaware for cash, including land with back taxes, liens, title issues or no road access, and land from heirs and estates. We make a cash offer within 24 hours, charge no fees or commissions, and pay the closing costs. We can close in as few as 7 days. Back taxes are paid at closing from the sale.

Where to check your tax status

Contact the county office that collects taxes: in New Castle County, the Office of Finance; in Kent County, the Receiver of Taxes; in Sussex County, the Director of Finance (9 Del. C. 8602). Each county website, New Castle, Kent and Sussex, has a tax lookup by parcel number. If a monition has been filed, the Superior Court Prothonotary in that county has the case. The state law is in Title 9, Chapter 86 and Chapter 87 of the Delaware Code.