Delaware - The Most Tax Friendly State
Let's take a look at what makes the first state a tax haven.
State Sales Tax
Delaware's sales tax is FREE. Neither the state nor localities impose a sales tax. Shop till you drop!
Delaware boasts the nation's sixth lowest property tax rate.
Residents pay an average of $604 in taxes per $100,000 of assessed home value
For example, a $400,000 home in Delaware would owe $2,416 per year in property taxes.
Tax breaks for seniors: Homeowners 65 and older can get a credit equal to half of school property taxes, up to $400.
There are also no inheritance or estate taxes to worry about!
Income Tax Range
Low: 2.2% (on taxable income from $2,001 to $5,000)
High: 6.6% (on taxable income above $60,000).
Effective Tax Rate: 3.83% for single filers, 5.53% for joint filers.
The City of Wilmington taxes wages of everyone who lives or works there at 1.25%.
For everyone who does not live or work in Wilmington only the state tax is due.