There are several tax advantages for people who choose to retire in Delaware; Delaware assesses no personal property taxes and does not tax Social Security benefits, as of 2015, notes RetirementInDelaware.com. Delaware also assesses no sales tax on items purchased in Delaware. Regardless of the state in which a Delaware resident lived during his working career, an excluded amount of pension benefits are not taxable by the state of Delaware.Continue Reading
In addition, Delaware has some of the lowest levels of real estate taxes in the nation, notes RetirementInDelaware.com. The average property tax on a home value of $249,400 is $1,078, reports Kiplinger. Credits are available for homeowners age 65 and older in amounts equal to half of normally assessed school property taxes. In addition, Delaware residents who sell their homes can claim an exclusion of up to $250,000 in profit for a single taxpayer or $500,000 for married taxpayers filing joint returns, provided they live in the home for two of the five years before it sells.
Delaware assess no inheritance tax, reports Kiplinger. Its estate-tax exemption is $5.25 million, and its maximum estate tax rate is just 16 percent. Income tax ranges from 2.2 percent to a maximum of 6.6 percent.Learn more about Financial Planning