TAX ADVANTAGES OF LIVING IN DELAWARE:
Let’s talk money! Sussex County Delaware is famous for its’ beautiful beaches, inland waterways and its’ close proximity to Washington DC, Baltimore and Philadelphia, which made it a natural vacation destination. But when those same vacationers found out about our tax structure – Southern Delaware quickly became famous as one of “the most tax-friendly states – especially for retirees”.
Delaware has some of the Lowest Real Estate Taxes in the country. But there’s more…there is No Sales Tax, No Inheritance Tax for most residents, and No Social Security Tax. And if you’re 60 or older you can exclude up to $12,500 of Investment and Qualified Pension Income from your taxes and that includes Out-of-State Government Pensions.
A little more detail…
Income taxes are 2.2% up to 5.55% for income under $60,000, and income $60,000 or more is taxed at 6.6%.
There are no taxes on Personal property.
As in any state, all real property is subject to tax unless specifically exempt. Sussex County real estate is subject to county, school district, vocational school district and municipal property taxes as applicable. There are various real property tax relief programs for residents age 65 and older, as well as for residents with disabilities. If you are 65 or older you can get a credit up to 50% of the school property taxes, up to a maximum of $500. To qualify you must have ten years of residence in your home.??Those who established legal residence in Delaware after December 21, 2012, but prior to January 1, 2018, remain under the previous requirement of three consecutive years of legal residence.
Here are a couple examples of the Low Real Estate Taxes you’ll find here in Southern Delaware:
A 3 Bedroom/2.5 Townhouse in Rehoboth Beach recently Sold for $345,000 and has “Annual” Real Estate Taxes of $952.
A 5 Bedroom/3.5 Bath Single Family Home in Rehoboth Beach recently sold for $880,000 and has “Annual” Real Estate Taxes of $1,817.
A 4 Bedroom/3 Bath Single Family Home in Lewes recently Sold for $585,000 and has “Annual” Real Estate Taxes of $1,417.
Click on the link below for the Sussex County Government Website where you will find all the information you need on taxes, tax relief programs, medical facilities, state government and more: