Delaware offers an attractive combination of low property taxes, no sales tax, and proximity to major Mid-Atlantic metros including Philadelphia, Baltimore, and Washington D.C. With a property tax rate of just 0.57% — one of the lowest on the East Coast — and some of the cheapest homeowners insurance in the country at around $900 per year, Delaware's total monthly carrying costs are far more manageable than neighboring states like New Jersey and Maryland. The state is also increasingly popular with retirees due to its favorable tax treatment of pension income.
Calculate Your Monthly Payment
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Select a program to apply FHA/VA/USDA rules.
Funding fee is often financed into the loan.
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20.0% of home price
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Used to estimate potential Year‑2 escrow shock if taxes reset after purchase.
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Used for Conventional PMI estimates and FHA minimum down rules
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Extra payments reduce balance faster and can end PMI sooner.
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Principal & Interest • Tax • Insurance • PMI • HOA
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Note: This is an estimate. Tax timing, exemptions, and escrow rules vary by county and lender. Always verify with your county assessor and your lender’s escrow analysis.
Extra Payment Savings
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Disclaimer: Results shown are estimates for educational purposes only and do not constitute financial, tax, legal, or investment advice. Actual payments vary based on lender, credit score, loan type, and local assessments. Consult a licensed mortgage professional for your specific situation.
Delaware Mortgage Calculator Guide
Buying a home in Delaware requires understanding local costs. The median home price in the state sits around $406,000, which means your down payment and loan amount will heavily dictate your monthly expenses. Because Delaware has an average property tax rate of 0.57%, factoring this into your monthly mortgage payment is essential for an accurate budget.
Beyond principal and interest, homeowners insurance in Delaware averages $900 per year. Local weather risks and property age can push this number higher. By using our pre-loaded local averages, you get a realistic view of your true housing costs rather than just a basic principal calculation.
If you put down less than 20%, you will also need to pay Private Mortgage Insurance (PMI). Adjust the down payment field above to see exactly how your PMI drops off once you reach that 20% equity threshold in Delaware.
Delaware's average property tax rate of 0.57% is well below the national average of 1.07% and remarkably low for an East Coast state. Property is assessed at a percentage of appraised value, and rates vary by county — New Castle County, which includes Wilmington, carries the highest rates, while Sussex County on the coast is lower. Delaware also has no sales tax, which reduces the overall cost of living and leaves more household income available for mortgage payments.
Frequently Asked Questions
Delaware's average property tax rate is 0.57%, well below the national average of 1.07%. Rates vary by county — New Castle County is highest and Sussex County is lowest. On a $406,000 home, annual property taxes average approximately $2,314 — significantly lower than neighboring New Jersey and Maryland.
No. Delaware has no state sales tax, which is a meaningful financial advantage for residents and reduces the overall cost of living. This, combined with low property taxes, makes Delaware one of the more tax-efficient states on the East Coast for homeowners.
The Delaware State Housing Authority (DSHA) offers the Welcome Home Program with competitive fixed-rate mortgages, the Preferred Plus Down Payment Assistance program, and a First-Time Homebuyer Tax Credit (MCC). DSHA also offers special incentives for buyers purchasing homes in targeted areas.
Delaware offers favorable treatment of retirement income — Social Security is not taxed, and pension income from most sources receives a significant exclusion. Combined with no sales tax, low property taxes, and coastal communities in Sussex County, Delaware consistently ranks among the top retirement destinations on the East Coast.
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