Underrated mid-Atlantic option. No sales tax, low property tax, and a meaningful pension exclusion. Coastal beach towns are surprisingly affordable.
| State income tax | Progressive, top rate 6.6% |
| Social Security | Fully exempt |
| Pensions & 401k/IRA | $12,500 pension/retirement income exclusion at 60+; SS fully exempt |
| Avg combined sales tax | 0.00% |
| Estate / inheritance tax | None |
Effective property tax: 0.61% (ranked #11 of 50 states).
Senior school property tax credit up to $500 for 65+; some county-level senior tax relief
Cost of living index: 102.7 where the US average is 100 — about 3% above the national average.
Four mild seasons. Coastal moderation keeps winters mild and summers tolerable.
Solid — ChristianaCare (Wilmington area), proximity to Penn Medicine and Johns Hopkins.
Lewes, Rehoboth Beach, Wilmington
No, Delaware does not tax Social Security retirement benefits.
Progressive, top rate 6.6%. $12,500 pension exclusion at 60+ ($25K per couple).
Delaware's cost of living index is 102.7 where the US average is 100. Effective property tax averages 0.61% and combined sales tax averages 0.00%.
Popular retirement spots in Delaware include Lewes, Rehoboth Beach, Wilmington.
Enter your retirement income and estimate what you'd actually pay in Delaware in 30 seconds.
Open tax estimator →Retire in Florida · Retire in Arizona · Retire in Texas · Retire in North Carolina · Retire in South Carolina · Retire in Tennessee
Tax data current as of 2026 publication. Rates and rules change annually — verify with a CPA before relocating. This page is educational and not personalized tax or legal advice.