How are property taxes prorated at settlement in Delaware?
Delaware county and school property taxes are billed once a year and cover a tax year that runs July 1 through June 30 in most of the state. When a home sells, the settlement attorney prorates the taxes by day. If the seller has already paid the year's bill, the buyer reimburses the seller for the days after settlement. If the bill is unpaid, it's paid at settlement and the seller is charged for their share of the year.
By David Sordelet | November 11, 2026
If you just paid your property tax bill this fall and you're thinking about selling, here's the good news: you'll likely get a chunk of it back at settlement.
Property tax proration is one of the line items sellers ask me about most when we review a net sheet. It's simple once you see how Delaware bills taxes.
How Delaware Bills Property Taxes
Unlike many states that bill twice a year, Delaware counties typically send one annual bill for county and school taxes:
New Castle County: The tax year begins July 1. Bills go out in July and are generally due by September 30.
Kent County and Sussex County: Also billed annually. Check your county's current due date, since each county sets its own schedule.
City and town taxes (Wilmington, Newark, Middletown, Dover, New Castle, and others) are usually billed separately by the municipality, on their own schedule.
Because the bill covers the whole year in advance, the person who owns the home on the day it's paid has usually paid for months they won't own the house.
How the Proration Works at Settlement
At settlement, the attorney divides the annual tax by the number of days in the tax year. The seller is responsible through the settlement date, and the buyer is responsible after that.
Here's an example. Say your annual county and school tax bill in New Castle County is $3,650, and you've already paid it. That's about $10 a day.
Tax year: July 1, 2026 to June 30, 2027
Settlement date: December 15, 2026
You owned the home for about 167 days of the tax year, so your share is about $1,670.
The buyer owes about 198 days, or about $1,980.
The buyer credits you about $1,980 on the settlement statement.
If the bill hasn't been paid yet, it works the other way: the tax is paid from the settlement funds, and you're charged for your share of the days.
The same logic applies to municipal taxes and, in many cases, sewer or HOA dues billed in advance.
What This Means for Your Net Proceeds
A few things I always point out to sellers:
Selling early in the tax year means a bigger credit. If you paid in September and settle in November, most of that payment comes back to you.
Escrowed taxes are handled separately. If your lender pays your taxes from an escrow account, the proration happens at settlement and any remaining escrow balance is refunded to you by your lender after the loan is paid off, usually within a few weeks.
Exemptions and credits don't transfer. A senior school tax credit or other exemption on your bill was based on you, so the buyer's future bills may be higher. Your settlement attorney will handle how that's reflected.
Reassessment changed a lot of bills. New Castle County's countywide reassessment changed many tax bills starting in 2025, so don't assume last year's number. Use the current bill.
When I build a net sheet for a seller, tax proration is one of the lines we estimate up front, so there are no surprises at the settlement table. You can see the full list in how much it costs to sell a house in Delaware.
Frequently Asked Questions
Who pays property taxes when you sell a house in Delaware?
Both the buyer and the seller do, each for the part of the tax year they own the home. The settlement attorney prorates the annual bill by day and settles up on the closing statement.
Do I get my property taxes back when I sell my house in Delaware?
If you've already paid the current year's bill, the buyer typically reimburses you at settlement for the days after the sale. The credit shows up on your settlement statement.
When are property taxes due in New Castle County?
New Castle County's tax year begins July 1. Bills are mailed in July and generally due by September 30. Municipal taxes are billed separately.
What happens to my escrow account when I sell?
Your mortgage is paid off at settlement, and your lender refunds any leftover escrow balance to you afterward, typically within a few weeks.
The Bottom Line
Delaware property taxes are billed annually and in advance, so sellers who've paid their bill usually get a credit for the remaining days at settlement. It's one of several line items that affect your bottom line, and it's worth estimating before you list.
Curious what you'd walk away with? Request your free Home Equity Report — it'll show you your home's current value, how much equity you've built, and what's happening with prices and inventory right in your neighborhood. Get your free report at search.teamsordelet.com/seller.
Team Sordelet and David Sordelet are licensed real estate professionals, not attorneys, accountants, or financial advisors. This article is general information, not legal, tax, or financial advice. Every situation is different — consult a qualified attorney, CPA, or lender about your specific circumstances before making decisions.
About David Sordelet
Looking for a trusted real estate professional in Delaware or Maryland who can help you make smart choices? Look no further than David Sordelet, Designated Broker of Real Broker Delaware and Team Leader of Team Sordelet.
With over two decades of experience, 1,000+ successful transactions, and 200+ five-star client reviews, David is recognized as one of the region's leading real estate experts. As the Designated Broker in Delaware and a licensed agent in Maryland, he provides unmatched knowledge of Wilmington, Newark, Hockessin, Dover, Middletown, and the Maryland Eastern Shore.
David understands that in real estate, who you work with matters most. That's why he combines personalized service, clear communication, and expert negotiation with the most modern marketing strategies and cutting-edge technology to achieve exceptional results for his clients.
Whether you're a first-time homebuyer, a move-up family, an investor, or a seller looking to maximize value, David Sordelet is the proven real estate professional you can count on.
License: RB-0031238-DE / 5013138-MD
