State Summary

• Tax Collection Method: Deeds
• Primary Bidding Type: Premium
• Redemption Period: 60 days
• Redemption Interest Rate/Flat Penalty: 15% simple interest per annum

Is Delaware a tax lien or a tax deed state?
Delaware is a "redeemable" tax deed state. Investors receive interest on purchased tax deeds if they are redeemed by the propety owner within the redemption period.

What is the name of the county official whom typically collects property taxes in Delaware?
Each of the three counties uses a different title. In New Castle County, the Chief Financial Office collects property tax. Kent County uses "Receiver of Taxes and Treasurer", and Sussex County uses "Director of Finance".

When are property taxes due in the state of Delaware?
The due date for property tax payments is July 1 for New Castle County, June 1 for Kent County, and May 1 for Sussex County. 

When do property taxes become delinquent in the state of Delaware?
In Kent and Sussex County, property taxes become delinquent on September 30 and a 1.5% interest penalty is assessed each month the property owner is delinquent. In New Castle County, property taxes become delinquent on September 1 with an immediate 6% penalty on total tax amount and then an additional 1% interest penalty is assessed each month the property owner is delinquent thereafter.

When do the Delaware counties make the delinquent tax list available?
Kent County will publish a list of delinquent properties at least one week prior to settlement. For all three counties, the sheriff shall publish the "tax sale list" at least 10 days prior to the scheduled date of the sale.

What is the name of the county official whom typically conducts tax deed sales in Delaware?
The county sheriffs conduct tax deed sales in all three counties. Tax deed sales in Delaware are also called "Sheriff Sales" or "Monition Sales".

When do the Delaware counties hold their sheriff sales?
Sheriff sales are held once a month in New Castle County (on second Tuesday of month) and Sussex County (third Tuesday of month). Kent county has a sheriff sale on the last Tuesday in January, April, July and October.

What are the registration requirements for the Delaware sheriff sales?
All three counties require registration just prior to the sale. To register, bidders need to present a valid photo ID and a deposit in the form of cash, cashier's check, or certified check. New Castle County requires a deposit of $5000, Sussex County requires $4000, and Kent County requires $2000. These funds are returned to the bidder immediately following the sale if no purchases are made during the sale.

What is the bidding type used at Delaware sheriff sales?
All three counties hold premium bidding public outcry auctions.

What forms of payment are generally accepted at Delaware sheriff sales?
Cash, cashier's check, or certified check.

What are the general terms of payment for tax deeds purchased at Delaware sheriff sales?
Full payment is due the day of the sale.

What is the maximum return (interest rate and/or flat penalty rates) investors earn while they hold the redeemable tax deed?
The state mandated interest rate is 15% per annum, or 1.25% accrual per month.

Is the interest rate applied only to the minimum bid amount for each property, or is this interest rate also assessed on the premium or "overbid" paid for the property during the auction?
The 15% interest is applied to the total purchase amount, so the "overbid" also earns 15% interest if the property is redeemed.

What is the redemption period for redeemable tax deeds in Delaware?
60 days, starting the same day that the tax deed is first offered for sale to the general public.

Are tax deeds offered "over-the-counter" in Delaware?
No.

What is the name of the county official whom typically determines the values of properties on a annual basis?
Director of Assessment in Sussex County, Assessment Supervisor in Kent County, and Tax Assessor in New Castle County.

Do the Delaware counties feature a Geographic Information System (GIS) application on their Web site?
New Castle and Sussex counties have GIS applications, and Kent County does not have a GIS application at this time. GIS applications can be very useful for tax lien and tax deed investors because most of them feature aerial photos (some with zooming options), and a lot of them are integrated with tax bills and assessor/appraisal records, which simplifies the task of researching properties online.

For more information on the statutes regarding property tax collection, tax liens, and tax deeds in the state of Delaware, refer to Delaware's Title 9 Counties code. A couple of the key chapters include:

• CHAPTER 86    COLLECTION OF TAXES
• CHAPTER 87    COLLECTION OF DELINQUENT TAXES