The short version
- Social Security taxed?
- No
- Income tax
- Brackets 2.2%–6.6%
- Property tax on a $300,000 home
- ≈ $1,620 / yr ($135 / mo)
- Everyday cost index (U.S. = 100)
- 102
- January / July high
- 40°F / 87°F
- Sales tax (state + local avg)
- 0.00%
Retiring in Delaware
No sales tax at all, low property taxes, and beaches within reach of big-city hospitals. Watch out: pension income above the exclusion is taxed up to 6.6%.
How Delaware taxes your retirement income
Social Security: not taxed at all.
Pensions: $12,500 pension exclusion per person age 60+.
401(k) and IRA withdrawals: The $12,500 exclusion covers 401(k)/IRA withdrawals at 60+.
The setup: Brackets 2.2%–6.6%.
Property tax & senior breaks
The average effective property tax rate is about 0.54% — roughly $1,620 a year ($135 a month) on a $300,000 home. Your county sets the real number.
Help for seniors: Homeowners 65+ get a school property tax credit of up to $500.
Try your own home value in the Property Tax Estimator.
Everyday costs & sales tax
Overall cost of living runs about 2% above the U.S. average. The combined state and average local sales tax is 0.00%.
Weather
January days top out around 40°F and July days around 87°F, with roughly 208 sunny days a year. Watch out for: Coastal storms and nor'easters; humid summers.
Healthcare
ChristianaCare anchors good care near Wilmington; beaches are farther from major hospitals.