Many people never consider Delaware retirement but with over 24 miles of sandy beaches that have been rated among the cleanest in the nation by the Clean Beaches Council, it may be worth another look.
Delaware enjoys four seasons. The summers are hot and humid and the winters are cold. The summer months tend to be the wettest with August having the most rainfall. Winters are dry and cold with some snow. Although Delaware is small, the southern part of the state is generally milder than the northernmost part of the state.One thing that seems to be drawing retirees to Delaware is the favorable tax environment. Property taxes are low, there is no sales tax on food and entertainment, social security benefits are exempt from income tax. According to AARP Magazine, taxpayers aged 60 and older in Delaware can exclude up to $12,500 of their investment and pension income.
Rehoboth Beach is just a three hour drive from both Philadelphia and Washington DC and is quickly becoming a popular retirement destination. Experts are expecting the 65+ population to increase by 75 percent over the next 25 years. Throughout the summer months, dolphins can be seen swimming offshore and the mile-long boardwalk features over 70 restaurants. Real Estate prices in Rehoboth are quite expensive but there are several communities nearby, like Lewes, with a population of under 4,000 that are very reasonable and are only minutes away. Nearby Cape Henlopen State Park offers miles of nature trails and bird sanctuaries, adding to the area's reputation as a great spot for outdoor enthusiasts.
Dover boasts some of the lowest property taxes of any city in the country. With a population of a little over 35,000, Dover is rich in history. Founded in 1683 by William Penn, the capital was moved from New Castle to Dover in 1777. There are plenty of activities year-round both indoors and out. You can enjoy the theater, concerts, festivals and special museum exhibits or even NASCAR or harness racing at Dover Downs.
If you are looking for a more country setting, the small village of Milton may be perfect for you. There are plenty of country roads and flat, panoramic farmlands for the bicycle enthusiast. Milton also attracts many people interested in arts and crafts because of it's inspiring panoramic views.
So, what are the pros and cons? The tax structure is one of the best you'll find. The weather, however is obviously a major factor to consider, but with average temperatures of 68 in the summer and 41 in the winter, Delaware affords a comfortable option for anyone not interested in the heat and humidity of the Deep South.
Just remember, if you are considering Delaware retirement, make sure to visit the area you are considering at least twice, once in the summer an then again in the winter before you make that big decision.
Important Facts about Delaware Retirement:
Median Home Price: $116,918
Personal Income Tax: Yes
-- No tax on the first $2,000
-- 2.2 percent on taxable income between $2,000 and $5,000
-- 3.9 percent on taxable income between $5,001 and $10,000
--4.8 percent on taxable income between $10,001 and $20,000
-- 5.2 percent on taxable income between $20,001 and $25,000
-- 5.55 percent on taxable income between $25,001 and $60,000
-- .95 percent on taxable income over $60,000.
Sales Tax: No
Property Tax: Yes
Each county has its own millage rate that is used when determining county property taxes, school district property taxes, vocational school district taxes and, if located within an incorporated area, municipal property taxes.
Inheritance and Estate Tax: No
For More Information: Contact the Delaware Division of Revenue
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