Delaware to increase transfer tax to 4% starting August 1, 2017
Increase will not apply to contracts signed before August 1st
As part of passing the budget for fiscal year 2018, the Delaware General Assembly voted to increase the transfer tax charged on real estate transactions from 3% to 4%. The higher rate will become effective on August 1, 2017 – but will not apply to transactions where the sales contract was signed before August 1, 2017.
For anyone thinking of buying or selling real estate in Delaware, if they can sign a contract before August 1, 2017, they can avoid the 1% increase.