Property Taxes: Delaware's property taxes are among the lowest of any state.

Retirement: The following table shows the total annual sales, property and income tax bill for a retired couple living in Delaware and surrounding states. The couple is assumed to have $50,000 of annual income and live in a home worth the median market value of 2,000 square foot houses in their town.

Sales Tax
Property Tax
Income Tax
Delaware #3 $0 $1,350 $790 $2,140
Pennsylvania 23 $2,268 $2,250 $560 $5,078
New York 43 $3,025 $3,086 $446 $7,279
Maryland 45 $1,968 $4,975 $520 $7,363
New Jersey 49 $2,268 $4,945 $342 $7,555


Sussex County and Delaware State Taxes

Personal Income Tax: State personal income taxes for residents are assessed on Delaware taxable income. Delaware taxable income equals Delaware adjusted gross income minus personal exemptions and standard or itemized deductions. Delaware adjusted gross income is derived by adding to the Federal adjusted gross income and receipts from the securities of states or political subdivisions other than Delaware and its political subdivisions. Income from obligations of the United States, disability and/or elderly credits and pensions up to $3,000 (age 60 and over) is then deducted from the federal adjusted gross income. Nonresidents are taxed on the portion of income derived from sources within Delaware. The current State tax rate schedule is graduated and includes six rate reductions.

State Taxes: Delaware has reduced its personal income taxes at all income levels. The state has never had a general sales tax or an inventory tax. There are no state real property taxes, and the local real property taxes are very low. The total state and local tax burden is competitive with most other states.

County Taxes: Sussex County taxes are based on a 1974 appraisal and assessed at 50 percent of the 1974 market value. The county tax rate for the year is $0.445 per $100 of assessed property value. This is the eighth year that the rate has been $0.445. This tax includes the county's cost for General Obligation Bonds, Libraries, Paramedics and the general operation of the county.

City and Town Taxes: Municipal governments and school districts are financed in part through real property tax receipts. Real estate in incorporated areas is subject to local property taxes, school district property taxes and vocational school taxes. The total property tax burden depends on the tax rate, the property assessment and the assessment ratio.