It is the dream of many to retire under the sun along a sandy beach in a charming ocean-side town. One of the best places to retire to the beach may actually be one of the least known: Delaware. Considered one of the country’s top beach destinations by nearby East Coast residents, the Delaware Shore offers a variety of financial benefits that can be as attractive as the area’s pristine sands when considering a retirement destination.
Aside from its pleasant summertime weather and quiet, friendly towns such as Bethany Beach, Rehoboth Beach, and Fenwick Island, the main advantage of retiring to the Delaware Beaches is that the tax burden for retirees is among the country’s lowest by any measure. Furthermore, most taxation statistics on Delaware take into account tax practices in the country at large, so one can imagine how much more favorably the Delaware Shore appears when compared with more expensive beach areas!
Specifically, Delaware is one of five states in the U.S. that does not levy a sales tax of any kind. In fact, driving anywhere near the Delaware Shore one is likely to see many road signs advertising the state’s tax-free shopping for clothes, jewelry, and gifts for the grandkids! Additionally, Delaware’s income tax rates are relatively low. Social Security income is not subject to state income tax, and nor is the first $12,500 of investment or pension income. This means that Delaware retirees don’t have to worry about losing their nest egg or benefits to the Delaware tax man.
Additionally, the Tax Foundation found that Delaware’s property tax burden is one of the eight lowest in the nation. Delaware is also one of 13 states that does not charge a property tax at the state level. Therefore, Delaware residents don’t have to worry about high property taxes driving them out of their idyllic beachside homes. Finally, Delaware boasts a favorable tax structure for trusts that can be utilized to bring even more tax benefits to its residents.
With all of the tax advantages of retiring to Delaware, it is no wonder that the AARP and Kiplinger have both repeatedly found the state to be one of the best destinations for retirees in financial terms. 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 too!