Back to Relief Resources

House Bill 241

Passed

Property Tax Payment Plans & Penalty Relief

Who This Applies To
Eligibility requirements for penalty-free payment plans

Primary Residence

Must be your main home in Delaware

First Year Only

Applies only in the first year after reassessment

$300+ Increase

School tax bill must be at least $300 higher than last year

The Key Changes
What this law provides for qualifying homeowners

Payment Plan Without Penalties

No penalties or late fees while you're on an approved payment plan for school taxes.

At least 3 equal installments spread over the remainder of the tax year.

No added interest or administrative fees unless you fail to meet the plan's requirements.

Additional Protections

Kent & Sussex Counties: Late payment penalties permanently reduced from 1.5% to 1% per month.

No extra barriers: Counties cannot impose additional restrictive requirements beyond the basic criteria.

How to Apply for Payment Plan
Step-by-step process to get penalty-free payments
1

Check Your Eligibility

Verify your school tax bill increased by $300+ compared to last year and the property is your primary residence.

2

Contact County Tax Office

Call New Castle County tax office promptly to request the school tax payment plan option.

3

Sign Payment Agreement

Agree to at least 3 equal payments spread over the remainder of the tax year.

4

Make Payments On Time

Keep up with all scheduled payments to maintain the no penalties/fees benefit.

Important Details to Remember

School Taxes Only: The payment plan specifically applies to the school tax portion of your property tax bill.

First Year Only: This relief applies only to the 2025-2026 tax year (first year after reassessment).

Stay Current: You must make all scheduled payments on time to keep the penalty waiver benefit.

Act Quickly: Contact the county tax office as soon as possible after receiving your bill.

Bill Status

✅ Passed

Signed into law by the Governor

Effective: Immediately upon signing

Applies to: 2025-2026 tax year only

Why This Matters

After the massive reassessment increases, many homeowners especially retirees and those on fixed incomes faced sudden, unaffordable tax bills.

Gives people time to adjust to higher bills

Prevents unnecessary penalty charges

Creates fair payment options for those hit hardest

Need Help?

Contact New Castle County Tax Office to apply for a payment plan:

Official Documents