Delaware · New Castle County · Local exemptions · Updated Oct 2026
New Castle County, DE property tax exemptions (2026)
The property tax breaks that are set or run locally in New Castle County, on top of Delaware’s statewide rules: what each is worth here, who qualifies, where to apply and the deadline.
What is different in New Castle County
New Castle County, reassessed in 2025 for the first time since 1987, gives homeowners 65+ an elderly exemption of up to $173,000 of assessed value from county property tax if income (not counting Social Security) is $65,000 or less and the home is assessed at $676,000 or less. A separate school-tax elderly exemption has much lower income limits ($15,000 single / $19,000 married); the county's 2025 form lists it at $32,000, and a June 2026 House caucus release says it has since been raised to $173,000. The state senior school credit (50% up to $500) and the disabled veterans school credit also apply.
Apply at
New Castle County Office of Finance, Assessment Division
Phone
302-395-5520
Local breaks
County Property Tax Elderly Exemption, School Tax Elderly Exemption, Senior School Property Tax Credit, Disabled Veterans School Property Tax Credit
Tax year
2026-27, FY2026 (July 1, 2025 - June 30, 2026) form; later form not found, FY2026 form ($32,000); amount since raised per June 2026 caucus release (unconfirmed)
Where to apply in New Castle County
New Castle County Office of Finance, Assessment Division
Up to $173,000 subtracted from the assessed value for county property tax (co-owners other than a spouse get their percentage share)
Set by
county
Tax year
FY2026 (July 1, 2025 - June 30, 2026) form; later form not found
Who qualifies
Homeowner 65 or older before July 1 whose home (or spouse's home) on the property is the principal residence; property assessed at $676,000 or less (July 1, 2024 value); Delaware resident legally domiciled in the state 10 consecutive years before July 1; no county taxes or sewer charges owed (or current on an approved payment plan).
Income limit
$65,000 adjusted gross income single, or $65,000 combined for a married couple, excluding Social Security and Tier 1 Railroad Retirement (prior calendar year; county form rev. Feb. 20, 2025)
How to apply
File the county Application for Real Estate or Mobile Home Exemption (Residents Age 65 Years or Older) with the Office of Finance, Assessment Division, 87 Reads Way, New Castle, by email ([email protected]) or fax (302-395-5544), with a copy of your prior-year federal Form 1040 (or SSA-1099 and other 1099s if you no longer file).
Amount off the assessed value for school district tax: $32,000 on the county's Feb. 2025 form. After HB 159 (2025) allowed counties to update pre-1998 exemption amounts, the House Democratic Caucus reported (June 2026) that the county raised it to $173,000; confirm the current amount with the Assessment Division.
Set by
school district
Tax year
FY2026 form ($32,000); amount since raised per June 2026 caucus release (unconfirmed)
Who qualifies
Homeowner 65 or older before July 1 who is a Delaware resident, lives in the home (or whose spouse does, or who is in a health care facility), and holds record title (or a revocable trust of which they are beneficiary).
Income limit
$15,000 single / $19,000 combined for a married couple, excluding Social Security and Tier 1 Railroad Retirement (county form rev. Feb. 20, 2025). HB 463 (2026), which would have applied the county-tax criteria, was not enacted (in Senate Executive Committee since June 18, 2026).
How to apply
Same county application as the county-tax elderly exemption; the county decides both.
50% of your regular school district property tax on your main home, up to $500 a year, taken off your county tax bill
Set by
state program, local amount
Tax year
2026-27
Who qualifies
Homeowner 65 or older by June 30 before the tax year, for a full-time primary residence, with a Delaware driver's license or ID. If you moved to Delaware on or after Jan. 1, 2018 you need 10 consecutive years of Delaware domicile (3 years if you moved in 2013-2017). Prior year's tax bill must be paid in full. No income limit. Cannot be combined with the Disabled Veterans School Tax Credit.
How to apply
Send the state application with a copy of each applicant's Delaware license/ID to the New Castle County Assessment Division ([email protected]).
Credit for 100% of the non-vocational school district property tax on your primary residence (vocational-technical district taxes are not covered). Each school board must authorize it; the state reported in Nov. 2021 that all 16 non-vocational districts had done so, and no later official district list was found.
Set by
school district
Tax year
2026-27
Who qualifies
Veteran receiving VA 100% disability compensation for a service-connected permanent and total disability (or individual unemployability), or with a 100% rating, legally domiciled in Delaware 3+ consecutive years, who owns and lives in the home. Under 14 Del. C. 1917(d) it continues for a surviving spouse who was a titled owner, has not remarried and still lives there. Prior tax bill must be paid in full.
How to apply
File the state application with your county tax office with a Delaware license/ID, VA disability documentation and Social Security card.
Roughly what an exemption could save you a year: the value it takes off, times your tax rate.
Eligibility finder for New Castle County
Answer a few questions to see which property tax breaks may fit you. Nothing you type here is sent anywhere.
Document checklist for New Castle County
Pick the breaks you plan to apply for. You get a checklist of forms, documents, steps and deadlines to print or keep on your phone.
Questions about property tax exemptions in New Castle County
What property tax exemptions are there in New Castle County?
New Castle County, reassessed in 2025 for the first time since 1987, gives homeowners 65+ an elderly exemption of up to $173,000 of assessed value from county property tax if income (not counting Social Security) is $65,000 or less and the home is assessed at $676,000 or less. A separate school-tax elderly exemption has much lower income limits ($15,000 single / $19,000 married); the county's 2025 form lists it at $32,000, and a June 2026 House caucus release says it has since been raised to $173,000. The state senior school credit (50% up to $500) and the disabled veterans school credit also apply. Local breaks here: County Property Tax Elderly Exemption; School Tax Elderly Exemption; Senior School Property Tax Credit; Disabled Veterans School Property Tax Credit.
Where do I apply for a property tax exemption in New Castle County?
New Castle County Office of Finance, Assessment Division Phone: 302-395-5520 Address: 87 Reads Way, New Castle, DE 19720. Also: Delaware Department of Finance, which state program (senior and disabled veteran school tax credits).
When is the deadline to apply in New Castle County?
County Property Tax Elderly Exemption: June 1 (June 1, 2025 on the current form; confirm the 2026 date with the Assessment Division) School Tax Elderly Exemption: June 1 (June 1, 2025 on the current form) Senior School Property Tax Credit: April 30 before the tax year. Disabled Veterans School Property Tax Credit: April 30 before the tax year.
Is there an income limit for New Castle County’s local breaks?
County Property Tax Elderly Exemption: $65,000 adjusted gross income single, or $65,000 combined for a married couple, excluding Social Security and Tier 1 Railroad Retirement (prior calendar year; county form rev. Feb. 20, 2025) School Tax Elderly Exemption: $15,000 single / $19,000 combined for a married couple, excluding Social Security and Tier 1 Railroad Retirement (county form rev. Feb. 20, 2025). HB 463 (2026), which would have applied the county-tax criteria, was not enacted (in Senate Executive Committee since June 18, 2026). Senior School Property Tax Credit: no income limit listed. Disabled Veterans School Property Tax Credit: no income limit listed.
Do I have to reapply every year in New Castle County?
County Property Tax Elderly Exemption: No reapplication while you keep the same principal residence; new application if you move. Tell the county if you stop qualifying. School Tax Elderly Exemption: No reapplication while you keep the same principal residence. Senior School Property Tax Credit: One-time; the credit ends if the property is transferred or you change your principal residence, and a new application is then required. Disabled Veterans School Property Tax Credit: One-time; not transferable (new application if you move). Notify the county within 60 days of any change in your disability rating.
Good to know in New Castle County
Under 14 Del. C. 1902(a)(3), county exemptions adopted on or before Jan. 1, 1998 also apply to school taxes, and after a county-wide reassessment the county must modify those amounts by ordinance (HB 159, signed June 13, 2025, 85 Del. Laws c. 31).
Under 14 Del. C. 1904, New Castle County non-vocational school districts may tax non-residential property at up to 1.85 times the residential rate.
Owners of homes assessed above $676,000 with income of $3,000 or less can get the smaller state senior exemption ($5,000) under 9 Del. C. 8131-8140 instead (county form).
Median effective tax rate for New Castle County: U.S. Census Bureau, American Community Survey, 2020–2024 5-year estimates, county figures as published by Tax Foundation. The rate is property taxes paid divided by home value.