Want a place where state income taxes, inheritance, and real estate taxes aren’t a burden?
According to Kiplinger, Delaware ranks No. 9 nationally
- State Income Tax: 2.2% to 6.75%
- State Sales Tax: None
- Estate Tax / Inheritance Tax: Yes / No
The first state is number one with many retirees, thanks to low real estate taxes, modest income taxes, and no sales tax. In fact, its highway billboards welcome visitors to the “Home of Tax-Free Shopping.” Social Security benefits are exempt from income taxes, and residents 60 and older can exclude $12,500 per person of qualified pension benefits and investment income, including dividends, interest, and capital gains, from income taxes. Income tax rates on remaining income range from 2.2% to 6.75%, with the top rate kicking in for both individuals and married couples when income reaches $60,000.
Residents 65 and older who do not itemize their deductions are eligible for a standard deduction of $2,500. Real estate taxes vary by county but are generally low. And homeowners 65 and older qualify for a credit against school taxes of up to $500 on their primary residence.
By Kiplinger’s Personal Finance magizine Washington editors