Why are taxes low in Delaware? Is it all good?

Delaware has no sales tax, and the property taxes are low, which may change with the upcoming statewide reassessment. However, we expect it will still remain lower than many other places.

So, how low is the property tax in Sussex County? 

Many houses pay less than $2,000/year. Then, 90% of that whole property tax goes to the school district and the County takes only 10%. So, if you pay $2,000/year, Sussex County takes only $200/year.

What can you expect from the County when you pay only $200/year? Not much.

Most of the houses in Sussex County are in subdivisions that are governed by the volunteer board of directors of homeowners associations (HOAs). The annual fees collected by the HOA are to maintain the internal streets, sidewalks, street lights, stormwater and drainage systems, common facilities, etc. There are often problems among neighbors due to the lack of understanding of their governing rules and the untrained volunteers performing tasks that the paid government employees are supposed to do. 

The property tax also does not include sewer fees, which are included in many other places. If the house is hooked up to the sewer for the first time, there is a hook-up fee of over $6,000.

Sussex County has volunteer fire departments, but the volunteer pools are dwindling due to the aging population. The influx of retirees outnumbers in great ratio the outflow of young people seeking better career opportunities elsewhere. This will be a big problem down the road.

Sussex County does not provide green spaces or parks for the residents because much of the green spaces are to be provided by each subdivision.

4% Property/Vehicle Transfer Fee

This is the major revenue source for both the County and the State. The County takes in 1.5% and the State takes 2.5%.

So, each time you buy a house or a car (or register a car in Delaware for the first time), this fee is charged. 

So, you get what you pay for is true here in Sussex County and Delaware.