Carney Proposes New Property Tax Rates And Senior Relief Amid Reassessment Impact

WILMINGTON — Mayor John Carney announced proposed changes to Wilmington’s property tax rates and senior tax exemptions in response to the citywide property reassessment conducted by New Castle County.

The updated property tax rates, which will take effect July 1, 2025, pending City Council approval, are based on a revenue-neutral model and are intended to offset the impact of reassessment while promoting greater equity in the tax system. Under the plan, the residential property tax rate will be set at $3.7413 per $1,000 of assessed value. The non-residential property tax rate will be $5.8276 per $1,000.

“These updated rates reflect our intent to make the property tax system more equitable and to address the challenges we see with the property reassessment process,” said Mayor Carney. “We recognize the financial pressures on our residents and businesses, and this temporary structure is a step toward a fairer system for everyone in the short term.”

The bifurcated rate structure (with separate rates for residential and non-residential properties) is a one-time measure aimed at easing the transition to new property values. While not all residents will see higher bills, those who do face an average increase of $223 for the upcoming fiscal year.

Carney also unveiled a revision to the City’s senior property tax exemption program. Beginning July 1, 2025, the exemption will apply to households at 100 percent of the Federal Poverty Level and will cover the first $210,000 of assessed home value. This adjustment is intended to provide ongoing relief for seniors with limited income.

“Our seniors have worked their whole lives to participate in the American dream and because of the new assessed values we must adjust this program,” Carney said. “These actions are about making sure that everyone, especially our most vulnerable residents, are treated fairly and with respect in the tax system.”

City Council will consider the proposed tax changes and exemptions in the coming weeks.

Why is this happening?

Wilmington is adjusting its property tax system because New Castle County reassessed property values — meaning the government re-evaluated how much each home and commercial property is worth. This is the first major reassessment in decades, and for many properties, the value has changed significantly. As a result, the City of Wilmington is updating how it calculates taxes to respond to this new reality and make things more fair.

What are the new tax rates?

Starting July 1, 2025, if approved by City Council:

Residential rate: $3.7413 per $1,000 of assessed value
(So if your home is assessed at $100,000, you would owe $374.13 annually.)
Non-residential (business) rate: $5.8276 per $1,000 of assessed value
(This higher rate for commercial property is temporary and meant to help balance impacts across sectors.)

This setup is called a “bifurcated rate structure” meaning two separate tax rates depending on whether the property is residential or commercial.

Will everyone pay more?

No. Some residents may see no change or even a tax decrease.
But on average, those who do see an increase will pay about $223 more per year.

This is because:

The assessed value of many homes went up, and even with a lower tax rate, the higher property value results in a higher bill.
The city tried to keep the overall revenue neutral, meaning it’s not trying to collect more money overall — just redistribute the tax burden more fairly.

What’s changing for seniors?

The City is expanding its senior property tax exemption to help older residents on limited incomes:

It will apply to households at 100% of the Federal Poverty Level (FPL).
(For 2025, that’s around $15,060 for a single person or $20,440 for a couple.)
It will exempt the first $210,000 of a home’s assessed value from being taxed.

This change is permanent and is aimed at helping seniors stay in their homes despite rising property values.