The downside: The major bummer in Delaware? The income taxes start at 2.2% on taxable income from $2,001 to $5,000 and go as high as 6.6% on taxable income surpassing $60,000.
Why it’s still a good place to move: The First State is one of just four states in the nations with no sales tax but is also has the lowest property tax rates of any state. There’s also no estate or inheritance tax. Some might say it’s a tax haven.
Property tax averages somewhere at $562 per $100,000 in assessed home value and eligible seniors can benefit from school property tax credits. More than that, Social Security benefits are not taxed, and retirees aged 60 and over can get an exemption of up to$12,500 in retirement income, including dividends, interest, pensions and IRA and 401(k) distributions.
Congratulations, Delaware! You’re the most tax-friendly state for retirees!