Beyond prime waterfront real estate, the state’s low tax rates are another bonus for retirees; Delaware has no sales tax, Social Security benefits are tax exempt, and seniors can exempt a portion of pension and investment income from state taxes, which max out at 6.75% for top earners.
Location is everything in Delaware. As mentioned, relaxing coastal communities are reason for retirees to choose Delaware as a retirement destination, but so too is the state’s proximity to other tourist destinations like Philadelphia, Washington, DC and New York City. All are an easy drive or train ride away, and can give retirees a taste of nearby urban culture.
Con: High cost of living in some areas
Best For: Beach lovers
Cost of Living: 13% higher than national average
Median Home Cost: $196,200
Top State Income Tax: 6.75%
Still, Delaware has a higher cost of living than the national average, though this is often isolated to certain towns. Retirees are advised to research cost of living in town’s they are interested in before relocating.