Marcus is purchasing a home in Wilmington, Delaware for $320,000. He has been told that Delaware imposes a realty transfer tax on the transaction. Assuming the standard split convention applies and the local jurisdiction charges the maximum allowable local rate, what is the total combined realty transfer tax rate that will apply to this transaction?
Correct Answer
D) 4.0%
Delaware imposes a state realty transfer tax of 2.5% under 30 Del. C. § 5401 et seq. Local jurisdictions (counties and municipalities) may impose an additional transfer tax of up to 1.5%. When the local jurisdiction charges the maximum 1.5%, the combined rate totals 4.0%. This is one of the highest combined transfer tax rates in the Mid-Atlantic region.
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