Crossing the Delaware for Tax Reasons - You're Not Alone!
We all know that George Washington crossed the Delaware River from the west to the east to launch a surprise attack on Trenton, New Jersey. It was one of the early pivotal blows in America’s Revolution to fight British taxation.
Today, more and more people, especially retirees, are moving from New Jersey and New York to Delaware for the tax benefits that living here can offer. Here of some of the major tax advantages that you will find living in the First State:
Delaware Tax Benefits:
- According to 2010 Census data report property taxes on a 2,000 square foot home in Delaware will run in the range of $125/month (less than 10% of the tax on an equivalent home in New Jersey).
- Sussex County Delaware is tied for second among all U.S. counties for the lowest ratio of median annual property tax to home value. This means that the percent of your home value devoted to property taxes will be about as low as it can be. In the country, Delaware is the 43rd highest for per capita property taxes.
- Delaware has no sales tax. That’s right – shop until you drop, TAX FREE!
- Social security income is not taxed.
- The first $12,500 of your pension income is not taxed.
- Railroad-Retirement benefits are exempt from income tax.
- If your a homeowner 65 and older, you can get a credit equal to half of the school property taxes up to $500.
Most of the taxation statistics on Delaware take into account tax practices in the country at large. You can imagine how much more favorably the Delaware Shore appears when compared with more expensive beach areas. The Delaware Shore may be one of the few places in the country where retirees can enjoy a great beach location and save on their taxes as well. Since social security benefits are not taxed in Delaware, and because up to $12,500 of pension income (including capital gains, interest, and dividends) is exempt from state taxes for people aged 60 and over, most retirees will pay little or no income tax to Delaware.
Few REALTORS know this area quite like the Pat Campbell-White. If you are looking at Lewes, Dewey or Rehoboth Beach real estate, give the Beachteam a call today. We combine 6 decades of local and trusted real estate experience and look forward to answering all your questions. Call us 7 days a week or fill out the our Contact Us form and we will get back with you right away.