Is There a Delaware Transfer Tax on a Refinance

There is no Delaware Transfer Tax on a refinance, this is a common question but there can never be a transfer tax on a refinance because a transfer is when the property changes hands from one owner to another.  The tax on a refinance is called a mortgage tax.  Delaware doesn’t have a mortgage tax either.  The only government fee you will pay on refinancing a home in Delaware is the recording fee to the county for recording the new mortgage.  Delaware technically doesn’t have a transfer tax it is actually a transfer fee.  This is a big distinction because a fee is not tax deductible as a tax would be.  The Delaware transfer fee on a purchase is 3% total.  Customarily split 1.5% to the seller and 1.5% to the buyer. Keep Reading...