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Delaware Real Estate Sale: Capital Gains Tax Explained

No short-term versus long-term distinction at all — the gain is simply added to everything else you earned.

Delaware Division of Revenue

By the FigureMyTax Editorial Team · Reviewed 2026 · How we calculate

Quick answer: up to 6.6% for 2026, with no separate rate for how long the house was held. See the full cost picture in the Delaware probate real estate sale calculator.

No distinction the federal government makes

Confirmed current: unlike the federal government, Delaware makes no distinction between short-term and long-term capital gains — or even between capital gains and other ordinary income.

Seven brackets, topping out quickly

Delaware's 2026 income tax runs seven brackets from 2.2% to 6.6%, with the top rate applying to income at or above $60,000 — most working residents reach the top bracket.

One city adds its own layer, for wages

Wilmington collects its own individual income tax of 1.25%, the only Delaware jurisdiction to do so — though this applies to earned income rather than a real estate sale gain specifically.

No estate or inheritance tax layered on top

Delaware imposes neither a state estate tax nor an inheritance tax, so this income tax on the gain is the only state-level tax question the sale itself raises.

Facing probate in Delaware?

A local probate attorney can review your estate — many offer a free consultation.

Talk to a Delaware attorney

The same bracket schedule applies whether the sale closes in New Castle, Kent, or Sussex County.

Capital gains tax on the sale — frequently asked questions

Does Delaware distinguish short-term from long-term capital gains?

No — unlike the federal government, Delaware makes no distinction between short-term and long-term capital gains, taxing the gain like any other income.

What are Delaware's 2026 income tax brackets?

Seven brackets ranging from 2.2% to 6.6%, with the top rate applying to income at or above $60,000.

Does Wilmington add its own tax on top of the state rate?

For wage income, yes — Wilmington collects its own 1.25% individual income tax, the only Delaware jurisdiction to do so, though this applies to earned income rather than a real estate sale gain specifically.

Does Delaware have a state estate or inheritance tax on top of this income tax?

No — Delaware imposes neither, so this income tax on the gain is the only state-level tax question the sale itself raises.

Keep going

Delaware Probate Real Estate Sale CalculatorYour estimate, based on your answers Court Approval to Sell in DelawareThe Court of Chancery, explained Delaware Sale Costs & CommissionNo statutory schedule, a wide filing-fee range Delaware Small Estate CheckerDoes this estate even need a sale?

This page provides general guidance only and is not legal, tax, or financial advice. Based on Delaware Division of Revenue guidance and federal Internal Revenue Code § 1014. Confirm current figures with the IRS, the Delaware Division of Revenue, a CPA, or a licensed Delaware attorney before acting.