Delaware has no sales tax on used cars, but it charges a motor vehicle document fee when you title one, and that fee went from 4.25% to 5.25% on Oct. 1, 2025. The DMV figures it on the sale price or the car's current NADA average trade-in value, whichever is higher, so a lowball number on the bill of sale won't cut it. Family gifts of a Delaware-titled car are exempt. Buying from an out-of-state dealer can mean paying twice.
On Oct 20, 2026 I read the Division of Revenue's note on sales tax, the DMV's titling page and vehicle FAQs, its dealer FAQ, the state's September 2025 fee announcement, Title 30, Chapter 30 of the Delaware Code, and the DMV's document fee regulation (2 Del. Admin. Code 2266). Treat every figure here as a snapshot as of Oct 20, 2026. The example math is mine, not the DMV's.
No sales tax, but a 5.25% document fee
The Division of Revenue says it plainly: "There are no state or local sales taxes in Delaware." Cars are no exception. What you pay instead is the document fee in 30 Del. C. 3002, collected by the DMV at titling and sent to the Transportation Trust Fund for roads. A state news release dated Sept. 30, 2025 says the fee rose from 4.25% to 5.25% effective Oct. 1, 2025, under HB 164. If a guide you're reading still says 4.25%, it's out of date.
The statute spells out the brackets. Under $400, the fee is a flat $8. From $400 through $500, it's $13.75. Above that, it climbs $5.25 for each additional $100 of price or fraction of $100, rounded to the nearest dollar. My example: an $8,000 private sale works out to $13.75 plus 75 increments of $5.25, or about $408. A straight 5.25% of $8,000 would be $420. The DMV describes the fee simply as 5.25%, so expect something in that range and use the DMV's fee calculator, or ask at the counter, for the exact figure.
On top of that you pay a $35 title fee, or $55 if a lender is on the title, per the DMV's FAQ, plus the yearly registration. The DMV says a title has to be transferred within 30 days of purchase or a late fee applies, and the car can't be driven until it's titled in the buyer's name. Our Delaware title transfer guide covers the paperwork step by step.
How the DMV sets the value
This is where people get surprised. The DMV's titling page says the fee is based on "the sale price or current NADA average trade-in value of the vehicle, whichever is higher." The statute adds that the price must be shown on a notarized bill of sale. If you don't have a bill of sale, or the back of the Delaware title doesn't show a price, the fee is based on NADA trade-in value. The DMV says you may get an appraisal from a licensed Delaware dealer, which "may also be considered," and that's your route if the car is rougher than the book assumes.
So a $2,500 cash deal on a car NADA calls a $5,000 trade-in pays on $5,000. If the car has a salvage history or a bad engine, bring the appraisal and the evidence.
Trade-ins, gifts and other exemptions
Trade-ins reduce the taxable price: the Code defines purchase price as the gross price less any trade-in allowance, and the DMV's fee page says the trade-in has to be Delaware-titled. Delaware also gives a private-sale version of that credit. If you sell your old car privately within 60 days before or after titling the new one, you get the same credit as if you'd traded it in, for one vehicle per application. Claim it when you title the new car, or within 30 days of the later sale, with proof of ownership and the sale amount.
The regulation exempts several transfers from the fee entirely:
- A gift from an immediate family member, meaning spouse, parent, child, sibling or grandparent, including step and in-law relations, but only on a Delaware title
- An inheritance or bequest (buying from an estate is not exempt)
- Transfers between joint owners without payment, and name changes from marriage, adoption or court order
- Lease buyouts after at least a year of continuous possession, with a letter showing the lessee paid the original fee
A gift that doesn't qualify, say from a friend, is charged on NADA average trade-in value. The DMV's FAQ adds that a qualifying family gift still pays the $35 title fee and may need proof of the relationship, like a birth or marriage certificate.
Buying out of state, or moving in
The DMV's fee page says out-of-state owners who bring a car here get credit for sales tax, transfer tax or a similar levy paid to another state within 90 days before registering in Delaware, and that "the 90-day rule is strictly enforced." Delaware residents buying from an out-of-state dealer get no credit for tax paid there, and the DMV warns that some states tax every sale, so you can be taxed twice. If you're shopping in Maryland or Pennsylvania, read our Maryland and Pennsylvania sales tax guides before you sign, and the used car sales tax overview for the bigger picture.
The fee is the easy part
The DMV clerk checks the paperwork. Nobody at the counter checks whether the car was flooded in another state last year. Run the VIN through NMVTIS for brands, get a CARFAX or AutoCheck report for accident and odometer history, and if anything looks branded, read our Delaware salvage and rebuilt title rules.
Our own prices, since they come up: CarVins is a licensed CARFAX and AutoCheck reseller, unaffiliated with either brand or with the Delaware DMV. As of late October 2026 guests paid about $5.50 a report, members about $4.50, and the two-report bundle was around $6.75, versus roughly $39.99 to $44.99 retail. Confirm the total at checkout before you buy.
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