Delaware Tax Burden
Delaware ranks #38 nationally for total tax burden with a combined rate of 7.00%.
Compare with Neighboring States
Is Delaware a High-Tax State?
Delaware is a relatively low-tax state, ranking #38 out of 50 at 7.00%. The state income tax rate of 5.252% is among the higher rates nationally, significantly impacting residents' take-home pay.
Property taxes are a major factor here — at 0.47% effective rate, homeowners in Delaware pay significantly more than the national median of ~1.1%. On a $300,000 home, that's approximately $141,000/year in property taxes alone. With a median household income of $75,406, the average Delaware resident pays approximately $5,278 per year across all state and local taxes.
Tax Planning Tips for Delaware Residents
High income tax state: At 5.252%, Delaware's income tax takes a significant bite. Consider maximizing pre-tax retirement contributions (401k, IRA, HSA) to reduce your state tax bill. If you're nearing retirement, evaluate whether relocating to a no-income-tax state could save you significantly on withdrawals.
Property tax protest: With an effective rate of 0.47%, property tax appeals are worth pursuing in Delaware. Homeowners who formally protest their assessed value often achieve reductions of 5–15%. On a $300,000 home, that's a potential savings of $14,100/year. Check your county assessor's deadline — most states allow annual appeals.
No sales tax: Delaware has no sales tax — a meaningful advantage for major purchases. Residents save hundreds to thousands annually compared to high-sales-tax states.
For retirees: At 5.252% income tax, all retirement withdrawals are potentially taxable. Check whether Delaware offers any exemptions for Social Security or pension income — many states do.
All 3 Counties in Delaware
| Rank | County | Property Tax | Income Tax | Sales Tax | Total Burden | Nat'l Rank |
|---|---|---|---|---|---|---|
| 1 | New Castle County | 0.76% | 5.408% | 0.00% | 8.18% | #2071 |
| 2 | Kent County | 0.47% | 5.133% | 0.00% | 7.00% | #2405 |
| 3 | Sussex County | 0.35% | 5.252% | 0.00% | 6.74% | #2495 |
Delaware Tax Burden Summary
Delaware ranks #38 for total tax burden in the United States with a combined effective rate of 7.00%. Residents earning $100,000 pay approximately $7,000 in total state and local taxes — including $141,000 in property tax on a $300,000 home, $525,200 in state income tax, and an estimated $0 in sales tax on $40,000 of taxable spending.
With a median household income of $75,406 and a population of 993,635, Delaware has 3 counties with tax burdens ranging from 6.74% to 8.18%. As a relatively low-tax state, Delaware offers meaningful savings compared to the national average, especially for those relocating from high-tax states in the Northeast or West Coast.