Delaware homeowners facing steep property tax increases have a fresh reason to breathe easier. On August 13, 2025, Governor Matt Meyer signed the Fairness Law, delivering immediate tax relief, refunds, and flexible payment options in response to a first-of-its-kind statewide property reassessment.
This “stopgap” legislation aims to shield families from sudden spikes in bills while preserving school funding—bringing relief that many residents sorely need.
What the Fairness Law Delivers
New measures enacted include:
- Split tax rates for residential and commercial properties.
- Extended payment deadline moved from September 30 to November 30.
- Refunds or credits for homeowners who overpaid.
- Flexible school tax installment plans starting in 2025–26.
- Cash refunds for successful appeals exceeding $50 overpayment.
- Protection for homeowners entering payment plans—no penalties or enforcement actions.
Actions were taken almost immediately after a late-night emergency legislative session, underscoring the urgency of the relief.
Breakdown of Relief Measures
| Measure | Details |
|---|---|
| Split Tax Rates | Schools can charge higher rates on businesses and lower them for homeowners, easing residential burden. |
| Refunds / Credits | Homeowners who overpaid receive cash (if >$50) or a credit on the next bill. |
| Extended Deadline | Tax due date moved from September 30 to November 30 for immediate cash flow relief. |
| Installment Payments (2025–26) | School taxes can be paid in three installments instead of all at once. |
| Appealed Property Values | Approved appeals yielding $50+ overpayment trigger cash refunds; smaller differences become credits. |
| Penalty Freeze | Tax plans relieve homeowners from penalties or enforcement actions while they comply. |
Why This Fairness Law Matters
1. Houses, Not Wealth, Bear the Brunt
A long-overdue reassessment transferred a large share of property tax burden from businesses to homeowners—especially in New Castle County. This Fairness law helps rebalance that shift.
2. Schools Stay Funded — Avoiding Crisis
Legislation preserves total school district funding while shifting the distribution of tax share. Teachers’ unions supported the approach to prevent program cuts.
3. Immediate and Fair Relief
Delaying deadlines and offering installment options and refunds give homeowners breathing room—not a vague promise of future relief.
4. Accountability and Transparency
The legislation calls for a full reassessment review, ensuring future property valuations are fairer and more transparent.
A Vision for Financial Stability
Residents are urged to do the following:
- Watch for updated tax bills in the mail.
- Check if you overpaid—look for refunds or credits.
- File appeals by the deadline—successful ones yield refunds.
- Use the new installment plan starting with the 2025–26 school year.
- Stay alert for future reassessment reforms and tax rate adjustments.
Delaware’s Fairness Law offers real, practical relief—restructured tax rates, payment flexibility, and refunds—as a thoughtful response to the harsh consequences of a major property reassessment.
While homeowners aren’t entirely exempt from higher bills, this legislation lightens the burden and eases financial stress.
For true fairness, affected residents should review their new tax notices carefully, appeal when warranted, and take advantage of the new options available to them.
FAQs
Do I need to apply for these refunds?
No. If you’ve overpaid, refunds or credits are automatic once the adjusted payments are issued—no separate claim is required.
What if I can’t pay the full tax amount?
Visit your county tax office. Under the new fairness law, you can set up a payment plan and avoid penalties, liens, or enforcement while current.
Will schools lose funding because of split rates?
No. The Fairness Law maintains school funding levels but shifts the source of revenue—making business property owners pay slightly more to lighten the load on homeowners.