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 northeastern retirement haven for snowbirds who can't quite leave the seasons. No wage income tax, no sales tax, and pristine outdoor lifestyle.
| 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 (since 2025) |
| 0.61% | Property tax (effective) | 1.93% |
| 0.00% | Avg combined sales tax | 0.00% |
| 102.7 | Cost of living (US=100) | 109.7 |
| None | Estate / inheritance tax | None |
| Four mild seasons. Coastal moderation keeps winters mild and summers tolerable. | Climate | Four full seasons including snowy winters. Mild summers (70–80°F), cold winters (often below 20°F). |
| Solid — ChristianaCare (Wilmington area), proximity to Penn Medicine and Johns Hopkins. | Healthcare | Excellent — Dartmouth-Hitchcock Medical Center is one of the top academic systems in the country. |
| Lewes, Rehoboth Beach, Wilmington | Top retirement cities | Portsmouth, Hanover, Wolfeboro |
Senior school property tax credit up to $500 for 65+; some county-level senior tax relief
Property tax exemption for elderly (varies sharply by town) with age 65/75/80 tiers
Delaware: Underrated mid-Atlantic option. No sales tax, low property tax, and a meaningful pension exclusion. Coastal beach towns are surprisingly affordable. New Hampshire: The northeastern retirement haven for snowbirds who can't quite leave the seasons. No wage income tax, no sales tax, and pristine outdoor lifestyle. 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, New Hampshire does not tax Social Security retirement benefits.
Delaware's cost of living index is 102.7 (US = 100). New Hampshire's is 109.7. Delaware is cheaper on average.
Enter your retirement income and see the after-tax difference between Delaware and New Hampshire 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.