Cost of Living in Delaware
Things cost about the same here as the national average.
What Things Cost in Delaware
Compared to the US national average
See raw index numbers
US national average = 100. Source: BEA Regional Price Parities 2023.
Delaware punches above its weight for a state smaller than many counties. It has no sales tax at all, which creates a noticeable difference in everyday spending. Combined with relatively low property taxes (about 0.53% effective rate) and moderate housing costs near the national average, Delaware offers a tax-efficient package, especially for retirees. Social Security benefits and pension income up to certain thresholds are exempt from state tax. The flip side is a graduated income tax that reaches 6.6% and a corporate-friendly legal system that does not translate to lower costs for individuals.
Delaware at a Glance
Taxes in Delaware
Delaware's state income tax tops out at Up to 6.6%. Property taxes run about 0.53% of home value, which on a $302,500 median home means roughly $1,603/year.
Explore Delaware
FAQ About Delaware
For most people, yes. Delaware has no sales tax, low property taxes (about 0.53% effective rate), and exempts Social Security benefits from state income tax. Retirees get additional benefits including a $12,500 pension income exclusion. The income tax does reach 6.6% at higher levels, but the absence of sales tax creates savings on every purchase that add up over the year.
Delaware is about 6% above the national average for cost of living, which is moderate for the Northeast. Housing is near the national average at around $302,500 median home price. The no-sales-tax advantage effectively reduces your cost of goods by 6-10% compared to most other states. For someone moving from nearby New Jersey or Pennsylvania, the tax savings on large purchases like cars and appliances can be substantial.
Wilmington and its suburbs offer the most job opportunities and proximity to Philadelphia. Middletown has grown rapidly as a family-friendly suburban community. Dover is affordable with a government-centered economy. The beach towns (Rehoboth, Lewes, Bethany) are popular with retirees and second-home buyers, with costs above the state average but well below comparable beach communities in New Jersey or Maryland.