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The Motor Standard

Last checked Nov 10, 2026

Buying a car in Delaware

The tax you will pay, whether your trade-in lowers it, what the dealer may charge for paperwork, and where to title and register. Taken from official Delaware sources.

State tax on vehicles
5.25%

motor vehicle document fee

Trade-in lowers tax
Yes
Doc fee limit
Check with the state
Deadline to title or register
30 days

details below

Sales tax on a car in Delaware

Delaware charges a state motor vehicle document fee of 5.25% on vehicle purchases.

Delaware does not impose a state or local sales tax.

Delaware has no sales tax; instead the Division of Motor Vehicles collects a 5.25% document fee when the vehicle is titled, based on the sale price or the NADA average trade-in value, whichever is higher. The rate rose from 4.25% on October 1, 2025.

Does a trade-in lower the tax?

The fee is calculated on the gross purchase price minus any trade-in or allowance given by the seller.

Example, state tax only. On a $30,000 car with a $10,000 trade-in, the taxable amount is $20,000, so the state tax is about $1,050. Without the trade-in it would be $1,575. Local taxes and fees are extra.

Dealer doc fees in Delaware

We could not confirm from an official source whether the state limits the documentation fee. Ask the dealer for the fee in writing and compare it with other dealers.

Whatever the rule, the fee is part of your out-the-door price. Ask for it in the written quote and negotiate the total, not the line. See dealer fees explained.

Title and registration

Titles and registrations are handled by the Delaware Division of Motor Vehicles. A title must be transferred within 30 days of purchase, and a late fee applies after that.

Also worth knowing

  • The state's motor vehicle document fee is separate from any documentation or processing fee a dealer charges for its own paperwork.
  • A buyer must provide proof of liability insurance when applying for a title.
  • A buyer must provide a Delaware driver's license or two accepted proofs of residency when applying for a title.

Sources

  1. Delaware Code Title 30, Chapter 30: Motor Vehicle Document Fee (delcode.delaware.gov)
  2. Delaware Division of Motor Vehicles: Titling, Transferring a Title (dmv.de.gov)
  3. State of Delaware News: DMV Fees Increase in October 2025 (news.delaware.gov)
  4. Delaware Division of Revenue: Gross Receipts Taxes (revenue.delaware.gov)

Last checked Nov 10, 2026; next review by Feb 10, 2027. This page explains how the rules generally work and is not tax or legal advice. Rules change, so confirm with the state. Report an error.

Concierge

Rather not do this part yourself?

Tell us the car you want. A person finds it, checks it, negotiates the out-the-door price in writing, and lines up the paperwork. You approve every step.

How concierge works