Delawareincome tax up to 6.6%, 11th lowest property tax, median home $350K

Worth knowing before you move to Delaware

Delaware has no sales tax, low property taxes and a graduated income tax that tops out at 6.6%. More than a million business entities are incorporated in the state because of its Court of Chancery. Sussex County beaches draw retirees from Pennsylvania, New Jersey and Maryland; the state does not tax Social Security and exempts up to $12,500 of pension and retirement income for residents 60 and over.

What Delaware taxes, and what it doesn't

Delaware levies a graduated income tax that tops out at 6.6%. A household earning $75,000 pays an effective 5.2%, about $3,934 a year; at $150,000 the effective rate is 5.9%. Among the 41 states that tax income, Delaware has the 6th highest effective rate at $100,000 of income.

Property tax runs 0.55% of home value a year, roughly $1,925 on the state's median home of $350K. The national effective rate is about 1.10%, and Delaware has the 11th lowest rate of the 50 states.

There is no sales tax in Delaware.

For retirees: Social Security benefits are not taxed, pension income is partly exempt, and there is no estate or inheritance tax.

Capital gains are taxed as ordinary income.

Housing and the cost of living in Delaware

Delaware's cost of living index is 102, where 100 is the national average; that is the 20th most expensive of the 50 states.

The median home costs $350K, 15% above the national figure and the 24th highest among the states. A two-bedroom rents for about $1,550 a month.

Carrying costs matter as much as the price: home insurance averages $700 a year, flood coverage adds about $700 where it is needed, car insurance runs $2,150.

Budget $145 a month for electricity and gas, $520 a month in groceries for two, $1,350 a month for full-time infant care.

Safety, health and schools

Violent crime is 446 incidents per 100,000 residents in the FBI's 2023 Crime Data Explorer figures, above the median state (387); Delaware is the 17th most violent of the 50 by that measure. Property crime is 1,827 per 100,000.

Life expectancy is 76.6 years (County Health Rankings 2024). 6.3% of residents have no health insurance, and the state has expanded Medicaid. The Commonwealth Fund's 2023 scorecard ranks Delaware's health system 18th of 50.

Education Week's 2023 Quality Counts report ranks K-12 schools 24th in the country.

Politics, guns and social policy

Politically, Delaware is a competitive state that went to Harris by 8 points in 2024.

On guns, concealed-carry permits are may-issue, at the discretion of local authorities, and Giffords grades the state's gun laws A-.

Abortion is protected by state law. Marijuana is legal for adults. Delaware is not a right-to-work state, and the minimum wage is $13.25 an hour.

Climate, risk and getting around

Natural disaster risk is moderate. The main hazards are hurricane, flood. Annual average air quality index is 35 (under 50 is good).

Delaware has no top-25 hub airport, with about 45 nonstop destinations from its busiest airport.