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HB 286

AN ACT TO AMEND TITLE 30 OF THE DELAWARE CODE RELATING TO DECREASING THE STATE'S REALTY TRANSFER TAX RATE OF TAXATION.

153rd General Assembly (2025-2026) Introduced by Frank Cooke and 3 co-sponsors

Delaware HB 286 lowers the realty transfer tax rate to reduce closing costs and boost real estate activity.

Assigned to Appropriations Committee in House
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WeVote Research Nonpartisan
Bill Summary · HB 286

Overview

HB 286 (Session 153, Delaware) proposes amending Title 30 of the Delaware Code to decrease the state's realty transfer tax rate. The bill aims to modify how realty transfers are taxed, with the underlying intent of reducing the tax burden on real estate transactions within the state.

Purpose and Intent

  • Reduce the realty transfer tax rate applied to real estate transactions in Delaware.
  • Improve market competitiveness and affordability of real estate purchases by lowering the tax payable at transfer.
  • Potentially stimulate real estate activity, investment, and associated economic activity by reducing transaction costs.

Key Provisions and Changes

  • amends Title 30 of the Delaware Code to change the rate structure or base for the realty transfer tax.
  • Specifies the new tax rate(s) applicable to real estate transfer transactions.
  • Clarifies how the new rate applies to different transaction types (e.g., residential vs. commercial) if the bill contains such distinctions.
  • Addresses any transitional rules, effective dates, or phased implementation (e.g., immediate effect upon enactment or a specified future date).
  • For administrative purposes, may include conformity with existing filing procedures, tax collection mechanisms, and reporting requirements.

Note: The exact text of the amended provisions (e.g., the precise new rate, definitions, exemptions, and transitional language) is not provided in the summary material. The bill’s formal language would detail the specific rate percentage, applicable exemptions (if any), and how it interacts with other state taxes.

Affected Parties

  • Real estate buyers and sellers engaged in taxable property transfers in Delaware.
  • Real estate brokers, attorneys, title companies, and closing agents involved in transfer transactions, due to tax collection and reporting responsibilities.
  • Local governments or state revenue departments responsible for processing and enforcing the realty transfer tax.

Procedural and Timeline Aspects

  • Introduction Date: January 29, 2026.
  • Assigned to: Revenue & Finance Committee in the House.
  • Next steps typically include committee consideration, potential amendments, and votes before advancing to the full House and then Senate for consideration.
  • If enacted, the bill would specify the effective date for the new tax rate (immediate or scheduled rollout).

Potential Impacts to Consider

  • Revenue: A lower realty transfer tax rate could reduce state revenue in the short term, affecting budgeting and funding for state programs unless offset by increased transaction volume or other revenue measures.
  • Real Estate Market: A reduced transfer tax may lower closing costs, potentially boosting market activity and reducing the total cost of ownership for buyers.
  • Administrative Burden: Tax collection and compliance procedures would need to align with the new rate; agents and attorneys may require updated guidance and training.

If you have access to the bill’s full text or fiscal notes, I can provide a more precise summary of the exact rate change, any exemptions, and detailed implementation timelines.

Compiled from official sources — confirm details with the bill’s official record.

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