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.