Delaware isn’t just tax-friendly — it’s life-friendly. As one of only five states with no sales tax, residents keep more of their paycheck every time they make a purchase. Pair that with the lowest property tax burden in the Northeast and no vehicle property taxes, and it’s no wonder Delaware continues to attract cost-conscious renters from surrounding states.

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No State Sales Tax

Delaware is one of only five states in the U.S. with no statewide sales tax. This alone can save residents hundreds to thousands per year on everyday purchases.

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Low Property Taxes

Delaware ranks among the lowest in the nation for property tax burden. The average effective property tax rate is just 0.56%, significantly below the national average.

Example: A $300,000 home in DE would have approx. $1,680/year in property taxes vs. $6,600/year in NJ.

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No Vehicle Property Taxes

Unlike some states, Delaware residents do not pay annual vehicle property taxes, which can save hundreds per vehicle each year.

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Modest Income Tax Rates

Delaware’s income tax ranges from 0% to 6.6%, depending on income level.

Retirement income exclusions apply: Residents 60+ can exclude up to $12,500 of pension and retirement income from state taxes.

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No Inheritance or Estate Tax

Delaware does not levy an inheritance tax or estate tax, unlike nearby New Jersey and Maryland.

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No Tax on Social Security Income

Social Security benefits are not taxed by the state, adding to retiree appeal.

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