Retire in Delaware: 2026 Tax & Cost of Living Guide
No state sales tax, no Social Security or estate tax, $12,500 pension exclusion at 60+, and low property taxes — consistently top-5 for retirees.
State income tax
Progressive — top rate 6.60%
Social Security
Not taxed
Estate tax
None
Property tax
0.61%
How Delaware Taxes Retirement Income
- Social Security
- Not taxed
- Public pensions (state/federal)
- Taxed
- Private pensions
- Taxed
- 401(k) / IRA withdrawals
- Taxed
Exemption / exclusion
$12,500 pension/retirement income exclusion age 60+
What Would You Pay in State Income Tax?
Rough estimates at the top marginal rate (actual effective rate will be lower for most retirees due to brackets, exemptions, and standard deduction):
| Annual Retirement Income | Estimated State Tax | Effective Rate |
|---|---|---|
| $50,000 | $3,300 | 6.6% |
| $100,000 | $6,600 | 6.6% |
| $200,000 | $13,200 | 6.6% |
We don't have detailed cost-of-living data for a city in Delaware yet. See our city guides for 300+ other cities worldwide, or compare Delaware against other US states below.
States With No Income Tax
Compare Against Other States
All 50 US States + DC
Ranked by tax-friendliness for retirees. Grouped by income-tax type.
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Tax rates and programs are subject to change. Data is current for 2024–2025. Always consult a qualified tax professional before making relocation decisions.