Tax-free shopping isn’t the only benefit of living in Delaware’s southernmost county. In fact, the tax benefits of living in coastal Delaware are many! Find out why calling the area home makes great financial sense, no matter what stage of life you’re in.
Low Property Taxes
First of all, Delaware boasts the seventh-lowest property tax rate of any state in the U.S. Here, the average effective property tax rate is just 0.56%. This is quite an incentive to live in such a sought-after location. Why are Delaware’s property taxes are so low? The state bases them on assessments from decades ago — for Sussex County, this was in 1974. So if you’re buying a new home in Coastal Delaware, you can expect to pay much, much less in taxes than if you bought in most other states.
One of the most well-known tax benefits of living in Coastal Delaware is tax-free shopping. People will even travel from surrounding areas to visit the First State to take advantage of it. And it applies to every store, from the charming, local boutiques on the boardwalk to large national chains. Think of how much money you could save by enjoying this tax benefit every day!
No Social Security Taxes
There is no state tax in Delaware on Social Security income, which makes it an incredibly popular place to live for active adults and retirees. Because many people aged 65 and older depend on Social Security income, it’s great to have more money each month because it’s not being taxed.
No Inheritance Tax
Delaware repealed its estate tax in 2018, which is another huge benefit to older families. Now, they can bequeath their estates to loved ones without having to pay an arm and a leg in taxes. What a wonderful gift to give future generations.
Other Tax Benefits of Living in Coastal Delaware
Believe it or not, there are even more tax benefits of living in Coastal Delaware. For starters, there are pension exclusions. For people aged 60 and older, up to $12,500 of pension and eligible retirement income are exempt from Delaware income taxes. Next are school tax credits. Each qualified homeowner 65 and older receive a Senior Citizen Property School Tax Credit of up to $500. Finally, unlike other states, there are no personal property taxes. This all adds up to a lower cost of living in a truly amazing place to live.
Reap the many tax benefits of living in Coastal Delaware
It’s no wonder why Coastal Delaware is such an appealing place to live. In fact, Sussex is the fastest-growing county in the state. Everyone from retirees, to families, to second homeowners are choosing to buy homes here. If you’d like more information on the stunning new homes in our Coastal Delaware neighborhood, Sweetbay, please contact us today!
Learn more about these exciting Delaware tax facts: Property, shopping, social security, pension, estate, and school.