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 Delaware 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, Declaration of Estimated Income Tax, 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 against your Delaware tax liability.
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 Form PIT-RES.
What Documents Do I Need?
Keep copies of:
- Form REW-EST received at closing
- Your settlement statement or closing documents
- Any records showing the payment amount made at closing
Important: Delaware instructs taxpayers claiming this credit to submit copies of all Forms REW-EST with their return.
What If I Am Married?
If you file a Delaware Married Filing Combined Separate return (Filing Status 4), Delaware allows you to allocate the Real Estate Capital Gains Tax Payments between spouses in any manner.
Common allocation methods include:
- Assigning 100% of the payment to the spouse who owned and sold the property.
- Splitting the payment 50/50 between spouses.
- Allocating the payment in any other percentage you choose for the Delaware return.
For all other filing statuses, the payment must be claimed under the taxpayer identification number for which the payment was made.
Important
Do not enter a Delaware Real Estate Capital Gains Tax Payment as:
- Delaware income tax withholding
- A Delaware estimated tax payment made directly by you
These payments are reported separately as a Real Estate Capital Gains Tax Payments Credit on the Delaware return.
Note
Only enter an amount if a payment was made at closing and is supported by Form REW-EST. If you did not receive Form REW-EST or no payment was made at closing, you generally should not enter an amount in this section.