If you sold Delaware real estate during 2025, you may have made a Real Estate Capital Gains Tax Payment at the time of the sale. This payment is not an additional tax on top of your income tax return. Instead, it is generally treated as a credit toward your Delaware income tax liability when you file your Delaware return.
What is a Real Estate Capital Gains Tax Payment?
When certain Delaware real estate is sold, an estimated income tax payment may be required at closing. The payment is reported on Form REW-EST and is intended to cover any Delaware income tax that may be due from the sale.
When preparing your Delaware return, you can claim this payment as a credit so that it is applied against your Delaware tax balance.
Where do I enter this payment?
In our program, enter the amount shown on your Form REW-EST by going to:
- State
- Edit Delaware using the three dots
- Payments
- Capital Gains Tax Payments
The amount entered will be reported on Line 39, Real Estate Capital Gains Tax Payments Credit, of your Delaware PIT-RES return.
What documents do I need?
Keep a copy of:
- Form REW-EST received at closing
- Your settlement statement or closing documents
- Any records showing the payment that was made on your behalf
What if I am married?
If you file a Delaware Married Filing Combined Separate (filing status 4) return, Delaware allows you to allocate the real estate capital gains tax payments between spouses. For all other filing statuses, the payment must be claimed by the taxpayer who made the payment. Common allocation methods include:
- Assign 100% of the payment to the spouse who owned and sold the property.
- Split the payment 50/50 between spouses.
- Allocate the payment in any other percentage that reflects ownership, income, or your filing strategy.
Important
Do not enter a Delaware Real Estate Capital Gains Tax Payment as tax withholdings or as an estimated tax payment.
Note: This credit applies to payments made in connection with the sale of Delaware real estate. If you did not receive Form REW-EST or did not make a payment at closing, you generally should not enter an amount in this section.