Does Delaware Have an Estate Tax or Inheritance Tax?

Delaware has no estate tax and no inheritance tax. For anyone who died on or after January 1, 2018, no state estate tax return is required regardless of the estate's size. For the vast majority of families settling a Delaware estate in 2026, state tax liability is zero — but federal obligations and the fiduciary income tax on estate earnings are a different story.

Delaware Repealed Its Estate Tax in 2018

Delaware formally eliminated its state-level estate tax for all deaths occurring on or after January 1, 2018. Before that date, Delaware imposed its own estate tax on estates above a certain threshold, and executors had to file a state estate tax return even when no tax was owed. For estates where the decedent died before 2018, those older filing requirements — including specific "No Delaware Estate Tax Return is Required" affidavits needed to clear real estate titles — still apply retroactively.

If your loved one died in 2026, you do not file a Delaware state estate tax return. Period. Any source telling you otherwise is outdated.

No Inheritance Tax Either

Delaware also imposes no inheritance tax. Unlike neighboring states such as Pennsylvania and New Jersey, Delaware does not tax beneficiaries on what they receive from an estate. It does not matter whether you are a child, a sibling, a friend, or an unrelated party — the inheritance passes to you without any Delaware-specific tax liability attached.

Federal Estate Tax: Still Applies for Large Estates

The absence of a Delaware state estate tax does not eliminate the federal estate tax. In 2025 and 2026, the federal estate tax exemption is approximately $13.99 million per individual. Estates below that threshold owe no federal estate tax. For the overwhelming majority of Delaware families, the federal estate tax is irrelevant.

For estates above the exemption, the executor must file IRS Form 706 (United States Estate and Generation-Skipping Transfer Tax Return) within nine months of the date of death, with a possible six-month extension. This is complex work — hire a CPA or estate attorney if the estate approaches the federal threshold.

The Delaware Fiduciary Income Tax (Form FID-TAX)

This is where many executors get caught off guard. Even though there is no estate tax, the estate itself can generate taxable income during the administration period, and Delaware taxes that income.

If the estate earns dividends from held stocks, collects rent on estate-owned property, or sells an asset at a gain after the date of death, the executor must file a Delaware Fiduciary Income Tax return (Form FID-TAX) with the Division of Revenue.

Key rules for Form FID-TAX:

• Due date: April 30 of the year following the taxable year
• Extension: File Form FID-EXT for an automatic extension to October 15, but any tax owed must be paid by April 30 — otherwise interest accrues at 0.5% per month
• Estimated tax: If a trust holds assets exceeding $1 million, it must file estimated tax declarations (Form FID-EST) for the following year
• Who must file: Resident estates, resident trusts, and any non-resident trust deriving income from Delaware sources (such as an S-Corporation operating in Delaware)

If the estate earns no income during administration — common for small estates settled quickly — no FID-TAX is required.

The Decedent's Final Personal Income Tax Return

The executor is legally responsible for filing the decedent's final Delaware personal income tax return for the portion of the year they were alive. The Delaware Division of Revenue actively monitors its decedent collections program. If the decedent owed back taxes or filed jointly with a surviving spouse, the state will pursue the estate and the joint filer for full payment.

Practically, this means:

• Gather all income documents (W-2s, 1099s, pension statements) for the year of death
• File a final Delaware state personal income tax return alongside the federal Form 1040
• If the surviving spouse was a joint filer, understand that the state can and will pursue them for any underpayment

If the final return involves complex items — S-Corporation income, rental property, K-1 distributions — hire a CPA. The cost of professional preparation is almost always far less than the interest and penalties from an error.

Why the "No Estate Tax" Affidavit Still Matters for Property Transfers

Even though Delaware has no estate tax for deaths post-2018, property records require documentation before title can be transferred. When clearing a real estate title after a death, the county Recorder of Deeds or Register of Wills may require a "No Delaware Estate Tax Return is Required" affidavit (sometimes called Form NDETRR99) — particularly for deaths that occurred in the transition period between 1999 and 2017.

For deaths in 2026, executors clearing joint tenancy property typically file an Affidavit of Jointly Held Real Property with the Register of Wills, which certifies the property now passes to the surviving owner. Your title company can confirm exactly which affidavit applies to your situation.

What an Executor Needs to Do (Tax Checklist)

1. Confirm no Delaware state estate tax applies — date of death must be on or after January 1, 2018
2. File the decedent's final Delaware personal income tax return — due April 15 of the following year (standard extension rules apply)
3. Determine if the estate generated income — if yes, file Form FID-TAX by April 30
4. Check if federal estate tax applies — if the gross estate exceeds ~$13.99 million, file Form 706
5. Clear property titles — file the appropriate affidavit at the Recorder of Deeds to document the transfer and confirm no state estate tax obligation

For most Delaware estates, steps 4 and 5 are the only ones that require a professional. Steps 1 through 3 are manageable with the right guidance.

The Delaware Estate Settlement Guide walks through every tax obligation in plain language — including the FID-TAX, the final 1040, and when to bring in a CPA — so you handle the filings correctly without overpaying for professional help on tasks you can do yourself.

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