Pros and Cons of Living in Delaware

Delaware's tradeoffs run genuinely, honestly in two directions this record does not flatten: a real, complete absence of any sales tax and a genuinely low statewide property tax sit against a real, above-median 6.6% top income tax bracket and a New Castle County property-reassessment complication, while strong healthcare access, low homeowners insurance, and a distinct corporate/military/coastal identity round out the state's authentic character.

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Pros: a real, complete absence of sales tax and a genuinely low property tax stack together as Delaware's clearest tax advantage

Delaware is genuinely one of only 5 US 'NOMAD' states (New Hampshire, Oregon, Montana, Alaska, Delaware) with no state or local general sales tax, and this record credits Delaware as genuinely the 'purest' of the five in one disclosed sense: unlike Alaska, which allows local municipalities to levy their own sales taxes (reaching as high as 7.85% in some Alaska communities), Delaware has a real, current, flat ZERO sales tax rate at every level of government, everywhere in the state, with no local option anywhere. That real advantage compounds directly with Delaware's genuinely low statewide property tax -- this record anchors the effective rate at approximately 0.53%, well below the roughly 0.91%-1.07% national average, with Sussex County running the state's lowest at approximately 0.33%. Delaware's homeowners insurance runs genuinely, substantially below the national average too (a real, disclosed $1,150-$1,669/year statewide spread), a further real, direct everyday-cost advantage this record credits without reservation.

Cons: a genuinely elevated, above-median 6.6% top income tax bracket, and a real New Castle County property-reassessment complication

Delaware's income tax runs genuinely elevated relative to the favorable sales- and property-tax picture above: a real, current, seven-bracket graduated structure topping out at 6.6% on taxable income at or above $60,000 (applying uniformly across filing statuses), a rate this record discloses as genuinely above several other graduated-income-tax states this dataset has documented, including Rhode Island's own 5.99% top rate. Separately, and specifically relevant to New Castle County property buyers, this record discloses a real, current, and genuinely significant property-tax-administration complication: a 2020 court ruling forced a statewide property reassessment over decades-old assessment bases (1983 in New Castle County, 1987 in Kent County, 1974 in Sussex County), and New Castle County's own version of that process has pushed the county's 2026 property tax bills to a mid-November mailing following an ongoing third-party quality-control review -- a real, disclosed delay a prospective New Castle County buyer should confirm directly rather than assuming an older figure still applies.

Real, strong healthcare access, a distinct corporate/legal economic identity, and a genuine three-county character (Wilmington, Dover, the Sussex beaches) round out Delaware's authentic advantages

Delaware's real, current healthcare-access picture runs genuinely strong: U.S. News & World Report's 2026 Best States ranking placed Delaware #2 nationally in Hospital Quality and #10 nationally in Healthcare Access, within an overall #14-nationally Best States ranking. Delaware's real, defining economic identity is genuinely anchored by Wilmington's corporate, legal, and financial-services hub -- more than 1.9 million registered business entities and roughly two-thirds of Fortune 500 companies incorporated in the state via the Wilmington-based Delaware Court of Chancery, a genuinely distinct, nationally unique concentration this dataset has not documented at this scale for any other state so far. Delaware's real three-county character further rounds out its authentic identity: Dover Air Force Base's substantial military and economic anchor role in Kent County, and Sussex County's real, distinct Atlantic beach-resort identity (Rehoboth Beach, Bethany Beach, Lewes, Fenwick Island) paired with the state's nationally-leading retiree-population growth.

The honest bottom line

Delaware rewards movers who directly, honestly weigh its real, complete sales-tax absence and genuinely low property tax against its real, above-median top income tax bracket and, for New Castle County specifically, a disclosed reassessment-timing complication -- and who value in return the state's real, strong healthcare access, low homeowners insurance, distinct corporate/legal economic identity, substantial Dover Air Force Base presence, and genuine Sussex County beach-and-retiree draw. This record does not describe Delaware as uniformly low-tax across every category; it describes a state whose real tax advantages concentrate specifically in sales and property taxes, alongside a genuinely elevated income tax this record asks every prospective mover, especially higher earners, to confirm and budget for directly.

Key takeaways

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Last reviewed: 2026-08-28. Independent research; not financial, tax, or legal advice -- confirm current figures with a local professional before making a decision.