Side-by-side for American retirees in 2026.
Underrated mid-Atlantic option. No sales tax, low property tax, and a meaningful pension exclusion. Coastal beach towns are surprisingly affordable.
The default American retirement state — and still the #1 destination. No state income tax, no estate tax, year-round warm weather, and the country's largest retiree community.
| Progressive, top 6.6% | Income tax | No state income tax |
| Exempt | Social Security | Exempt |
| $12,500 pension exclusion at 60+ ($25K per couple) | Pension treatment | All retirement income state-tax-free |
| 0.61% | Property tax (effective) | 0.82% |
| 0.00% | Avg combined sales tax | 7.00% |
| 102.7 | Cost of living (US=100) | 102.8 |
| None | Estate / inheritance tax | None (no estate or inheritance tax) |
| Four mild seasons. Coastal moderation keeps winters mild and summers tolerable. | Climate | Hot/humid year-round, especially May–October. Mild winters statewide. Hurricane season June–November. |
| Solid — ChristianaCare (Wilmington area), proximity to Penn Medicine and Johns Hopkins. | Healthcare | Strong — large hospital systems statewide (Cleveland Clinic Florida, Mayo Jacksonville, AdventHealth). Above-average Medicare Advantage options. |
| Lewes, Rehoboth Beach, Wilmington | Top retirement cities | The Villages, Sarasota, Naples |
Senior school property tax credit up to $500 for 65+; some county-level senior tax relief
$50,000 homestead exemption + 'Save Our Homes' 3% annual cap on assessment increases
Delaware: Underrated mid-Atlantic option. No sales tax, low property tax, and a meaningful pension exclusion. Coastal beach towns are surprisingly affordable. Florida: The default American retirement state — and still the #1 destination. No state income tax, no estate tax, year-round warm weather, and the country's largest retiree community. The right choice depends on your income mix, climate preference, and whether state income tax matters more to you than property tax.
No, Delaware does not tax Social Security retirement benefits.
No, Florida does not tax Social Security retirement benefits.
Delaware's cost of living index is 102.7 (US = 100). Florida's is 102.8. Delaware is cheaper on average.
Enter your retirement income and see the after-tax difference between Delaware and Florida in 30 seconds.
Open tax estimator →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.