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.
Four-season retirement with proximity to DC, the Blue Ridge, and the Chesapeake Bay. Income tax applies but a meaningful age 65+ deduction softens it.
| Progressive, top 6.6% | Income tax | Progressive, top 5.75% |
| Exempt | Social Security | Exempt |
| $12,500 pension exclusion at 60+ ($25K per couple) | Pension treatment | $12K age deduction at 65+; Social Security fully exempt |
| 0.61% | Property tax (effective) | 0.82% |
| 0.00% | Avg combined sales tax | 5.77% |
| 102.7 | Cost of living (US=100) | 101.4 |
| None | Estate / inheritance tax | None |
| Four mild seasons. Coastal moderation keeps winters mild and summers tolerable. | Climate | Four distinct seasons. Mild winters in the south/coast; cooler in the mountains. Warm humid summers. |
| Solid — ChristianaCare (Wilmington area), proximity to Penn Medicine and Johns Hopkins. | Healthcare | Excellent — UVA Health (Charlottesville), VCU Health (Richmond), proximity to top DC-area systems. |
| Lewes, Rehoboth Beach, Wilmington | Top retirement cities | Williamsburg, Charlottesville, Roanoke |
Senior school property tax credit up to $500 for 65+; some county-level senior tax relief
Real estate tax relief for elderly/disabled available in most localities — income limits vary
Delaware: Underrated mid-Atlantic option. No sales tax, low property tax, and a meaningful pension exclusion. Coastal beach towns are surprisingly affordable. Virginia: Four-season retirement with proximity to DC, the Blue Ridge, and the Chesapeake Bay. Income tax applies but a meaningful age 65+ deduction softens it. 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, Virginia does not tax Social Security retirement benefits.
Delaware's cost of living index is 102.7 (US = 100). Virginia's is 101.4. Virginia is cheaper on average.
Enter your retirement income and see the after-tax difference between Delaware and Virginia 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.