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.
Cheaper than its northern neighbor, with one of the most generous retirement income deductions in the country. Coastal retirement hubs and historic charm.
| Progressive, top 6.6% | Income tax | Progressive, top 6.2% |
| Exempt | Social Security | Exempt |
| $12,500 pension exclusion at 60+ ($25K per couple) | Pension treatment | $15K/person retirement deduction at 65+; Social Security fully exempt |
| 0.61% | Property tax (effective) | 0.53% |
| 0.00% | Avg combined sales tax | 7.50% |
| 102.7 | Cost of living (US=100) | 95.0 |
| None | Estate / inheritance tax | None |
| Four mild seasons. Coastal moderation keeps winters mild and summers tolerable. | Climate | Warm humid summers, mild winters. Low country (Charleston, Hilton Head) is hot and humid; upstate (Greenville) is cooler. |
| Solid — ChristianaCare (Wilmington area), proximity to Penn Medicine and Johns Hopkins. | Healthcare | Solid in major metros — MUSC (Charleston), Prisma Health (Greenville). More limited in rural areas. |
| Lewes, Rehoboth Beach, Wilmington | Top retirement cities | Hilton Head Island, Charleston, Bluffton |
Senior school property tax credit up to $500 for 65+; some county-level senior tax relief
$50K homestead exemption + first $100K of home value exempt from school operating tax for 65+
Delaware: Underrated mid-Atlantic option. No sales tax, low property tax, and a meaningful pension exclusion. Coastal beach towns are surprisingly affordable. South Carolina: Cheaper than its northern neighbor, with one of the most generous retirement income deductions in the country. Coastal retirement hubs and historic charm. 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, South Carolina does not tax Social Security retirement benefits.
Delaware's cost of living index is 102.7 (US = 100). South Carolina's is 95.0. South Carolina is cheaper on average.
Enter your retirement income and see the after-tax difference between Delaware and South Carolina 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.