Costs of Selling Land in Delaware

Selling Costs in Delaware: What to Know

The Delaware realty transfer tax is 4% of the value: 2.5% to the state and 1.5% to the county or town. By law the buyer and seller split it equally, so the seller's share is 2%. Sellers also pay their share of closing costs, property taxes, and tax on any gain.

This page lists each cost, who usually pays it, and where the number comes from. A worked example shows a $25,000 land sale. If you want to skip most of these costs, you can get a cash offer for your Delaware land.

Delaware realty transfer tax

Under Title 30, Chapter 54 of the Delaware Code, the realty transfer tax is 4% of the value of the property. The state gets 2.5% and the county or town gets 1.5%. The Division of Revenue return instructions explain how to figure it.

The return compares the price with the highest assessed value of the land and uses the greater number. The tax is paid when the deed is presented for recording. Some transfers are exempt under 30 Del. C. 5401.

Who pays what by custom

The Division of Revenue says the tax is split equally between the seller and the buyer. On a $25,000 sale, that is $500 for each side. The parties can still negotiate a different split in the contract, so read it before you sign.

Recording fees, title search and title insurance are usually set by the contract. The seller pays to clear their own liens and any unpaid property taxes, because the buyer needs clear title.

Attorney closings in Delaware

Delaware real estate settlements are usually handled through a Delaware attorney's office, which prepares the deed and the transfer tax return and records them. Attorney and title fees vary, so ask for a written quote before you sign.

Each county Recorder of Deeds (New Castle, Kent and Sussex) sets its own recording fees. Check the county's fee list for the current amount.

Prorated property taxes

Property taxes are split at closing so each side pays for the part of the year they owned the land. Your settlement statement shows the credit or charge. Any back taxes are paid from the sale proceeds at closing.

Delaware property taxes are billed by the county, and some towns bill their own. Ask the settlement office to show both on your closing statement if they apply.

Capital gains tax basics (federal and Delaware)

You owe tax on the gain, not on the full price. The gain is the sale price minus your basis (what you paid plus improvements) and minus your selling costs. The IRS explains basis in Topic 703.

If you owned the land for more than one year, the federal gain is long-term and is taxed at 0%, 15% or 20%, based on your taxable income. For 2025, a single filer pays 0% on long-term gains when taxable income is $48,350 or less. Land held one year or less is taxed as regular income. See IRS Topic 409.

Delaware taxes capital gains as part of your income. The Division of Revenue lists graduated rates from 2.2% to 5.55% on income under $60,000, and 6.6% on income of $60,000 or more. The return also asks whether the seller is a Delaware resident, so tell the settlement office if you live out of state.

The closing agent usually reports the sale to the IRS on Form 1099-S. This page is general information, not legal or tax advice. Confirm the numbers with your closing agent or a tax professional.

How selling to a cash buyer changes the costs

A listing with an agent adds a commission on top of the costs above. When you sell to EasyLotBuyer, there are no fees or commissions, and we pay the closing costs. You get a cash offer within 24 hours and can close in as few as 7 days.

We also buy land with back taxes, liens, title issues or no road access, and land held by heirs or an estate. Back taxes are paid at closing from the sale, so you do not need cash up front. Your capital gains tax is still your own, so keep your closing statement for your tax return.

• No agent commission
• No closing costs for you: we pay them
• Back taxes paid at closing from the sale
• Cash offer within 24 hours