No sales tax
Delaware has no state or local sales tax. Furniture, appliances, electronics and everything else you need to set up a new home cost what the price tag says, and the tax-free outlets along Route 1 draw shoppers from neighboring states.
Relocating to Delaware
Why so many buyers are moving to coastal Delaware
Every week I meet buyers from Maryland, New Jersey, Pennsylvania, New York and Virginia who have done the math. Delaware pairs beaches, small towns and lower housing costs than many nearby metro areas with some of the friendliest tax rules on the East Coast, especially for retirees.
- No sales tax on anything you buy in the state
- Social Security isn't taxed by Delaware
- Retirement income exclusion of up to $12,500 per person at age 60+
- No inheritance tax and no estate tax
- Low property taxes, among the lowest in the country
Tax advantages
How Delaware's taxes work in your favor
A quick guide to the state and local taxes that matter most when you move here. Rules change, so confirm the details for your situation with a tax professional.
Social Security is tax-free
Delaware does not tax Social Security benefits, no matter your income.
Retirement income exclusion
At age 60 and older, each person can exclude up to $12,500 of pension and other eligible retirement income (such as IRA and 401(k) distributions, interest, dividends and capital gains) from Delaware income tax. That's up to $25,000 for a married couple. Under age 60, up to $2,000 of pension income is excluded.
Extra breaks for seniors
Taxpayers 65 and older get an additional standard deduction, and Delaware's personal tax credit is increased for filers 60 and older. Income tax rates start at 0% and top out at 6.6% on income over $60,000.
No inheritance or estate tax
Delaware repealed its estate tax for deaths on or after January 1, 2018, and it has no inheritance tax, so more of what you build passes to your family.
Low property taxes
Delaware's property taxes are among the lowest in the nation, and Sussex County, home to most Insight communities, is known for especially modest county taxes. Your bill combines county, school district and (inside town limits) municipal taxes, so it varies by address. Ask me for the estimate on any home.
Good to know
The fine print for new residents
- Senior school tax credit takes 10 years. Homeowners 65 and older can get a credit of 50% of their school property taxes, up to a capped amount, but anyone who became a Delaware resident on or after January 1, 2018 must live here 10 consecutive years before qualifying.
- Realty transfer tax. Delaware charges a 4% transfer tax when a home is sold, customarily split between buyer and seller. First-time homebuyers may qualify for a reduced state share. Ask me how it applies to the home you're considering.
- County senior exemptions are income-limited. Sussex County offers property tax exemptions and subsidies for longtime residents with limited incomes; most relocating buyers won't qualify for these.
- Vehicles. There's no sales tax on a car, but Delaware charges a one-time document fee when you title a vehicle here.
- Update your license within 60 days. New residents have 60 days to get a Delaware driver's license, which you'll also need for property tax credits.
This page is general information, not tax or legal advice. Tax rules and amounts change; confirm current details with the Delaware Division of Revenue, Sussex County or a tax professional.
Why coastal Delaware
- Beaches at Lewes, Rehoboth, Bethany and Fenwick Island
- About two to three hours from Washington, Baltimore and Philadelphia
- Small-town downtowns, state parks, golf and the water
- Energy-efficient new homes that keep utility bills low
Start your search
Let's talk
Thinking about moving to Delaware?
Tell me where you're moving from, your timeline and what matters most. I'll help you compare communities, taxes and commutes, and set up tours that fit your trip.
