Delaware - The Most Tax Friendly State
Tyler Michaels
Tyler Michaels, Team Marketing Coordinator, is a graduate of Penn State where he earned a bachelor's degree in business marketing...
Tyler Michaels, Team Marketing Coordinator, is a graduate of Penn State where he earned a bachelor's degree in business marketing...
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!
Property Taxes
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.
Social Security
Social security benefits are not taxed.
Pension Exemptions
Taxpayers age 60 and older can exclude up to $12,500 of pension and other retirement income (up to $2,000 for taxpayers younger than age 60).
Inheritance and Estate Taxes
There are NO inheritance or estate taxes to worry about!
Here's how Delaware stacks up against local states in taxes:
Learn more about Delaware state taxes at Kiplinger.com.
If you have any questions about taxes, the Frampton Realty team recommends contacting your local tax professional.
Thinking of Buying in Delaware?
Talk to a Frampton Realty agent today!