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.
Big, varied, and tax-friendly. No state income tax, lower cost of living than Florida, and three distinct retirement regions (Hill Country, Gulf Coast, North Texas).
| 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) | 1.63% |
| 0.00% | Avg combined sales tax | 8.20% |
| 102.7 | Cost of living (US=100) | 92.6 |
| None | Estate / inheritance tax | None |
| Four mild seasons. Coastal moderation keeps winters mild and summers tolerable. | Climate | Highly varied. Hot humid summers statewide. Hill Country mild winters; Panhandle has snow; Gulf Coast similar to Florida. |
| Solid — ChristianaCare (Wilmington area), proximity to Penn Medicine and Johns Hopkins. | Healthcare | Strong in major metros — MD Anderson Cancer Center (Houston), Houston Medical Center, Dallas-area systems. Rural Texas healthcare is weaker. |
| Lewes, Rehoboth Beach, Wilmington | Top retirement cities | Fredericksburg, San Antonio, Georgetown |
Senior school property tax credit up to $500 for 65+; some county-level senior tax relief
$100K homestead exemption (2023) + senior 65+ school tax freeze + additional $10K senior exemption
Delaware: Underrated mid-Atlantic option. No sales tax, low property tax, and a meaningful pension exclusion. Coastal beach towns are surprisingly affordable. Texas: Big, varied, and tax-friendly. No state income tax, lower cost of living than Florida, and three distinct retirement regions (Hill Country, Gulf Coast, North Texas). 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, Texas does not tax Social Security retirement benefits.
Delaware's cost of living index is 102.7 (US = 100). Texas's is 92.6. Texas is cheaper on average.
Enter your retirement income and see the after-tax difference between Delaware and Texas 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.