City of New Castle Announces New Tax Rate & Expanded Exemptions for Fiscal Year 2026

City of New Castle Announces New Tax Rate & Expanded Exemptions for Fiscal Year 2026

On Thursday, June 26^th, City Council approved the Fiscal Year 2026(FY 2026) Budget for the period of July 1, 2025- June 30, 2026, after a thoughtful and lengthy budget season.  Council also adopted the new County property assessments and determined the “rollback rate” from the previous tax rate, to be .23799 per $100 of assessed value.  The “rollback rate’ is the amount which would provide the City with the same amount of revenue as the old county taxable value with the new county taxable value.  The previous tax rate was 1.2 of $100 of assessed value which generated $3.1 million and the “rollback rate” of .23799 per $100 of assessed value would also generate that same amount of revenue.  After careful consideration and determining the need for additional revenue, City Council determined that it was necessary to raise City taxes for Fiscal Year 2026 to .35635499 per $100 of assessed value.  Tax Bills will be sent out in July 2025.

Senior Citizen Property Tax Exemption and Disability Tax Exemption Extended through September 1, 2025 for Fiscal Year 2026 tax billing. 

During the Fiscal Year 2026 Budget process, City Council approved ordinances to extend the deadline for Senior Citizen Property Tax Exemptions and Disability Tax Exemptions through September 1, 2025 and have raised the income limits and exemption amount on assessed valuation to allow for more residents to take advantage of the program.  Residents who have already applied and have been accepted to receive a tax exemption for Fiscal Year 2026, do not need to re-apply for Fiscal Year 2026.  Residents must re-apply each year to ensure the below qualifications are met. 

Here are the details:

• Single property owners whose income, excluding social security, shall not exceed $25,000 are eligible for exemption
• Married property owners whose income, excluding social security, shall not exceed $50,000 are eligible for exemption
• Exemptions are applicable to the first $173,000 of assessed valuation, for those who meet the eligible criteria
• Property Owners must reside at the property or in an assisted living facility to qualify for the exemption

To see if you qualify for the exemption, please schedule an appointment with Diane Delgado, Finance/HR Specialist to complete your application.  Please call the City Administration Office to schedule your appointment (302) 322-9801.

What to bring:               

• Driver’s License or ID
• Copy of 2024 Federal IRS and State Division of Revenue Income Tax Return filed in 2025
• For Disability Tax Exemption, please provide your social security statement/ medical letter.

Delayed Interest on Late Tax Payments through December 1, 2025 for Fiscal Year 2026 tax billing:

Interest charges in the amount of 6% in October and 1.5% each month after are typically applied.  For Fiscal Year 2026, taxes paid on or after October 1, 2025 are subject to an interest charge of 1.5% October, an additional interest charge of 1.5% in November and 6% for the month of December.  For each consecutive month after December, an additional interest charge of 1% will be applied.