According to a 2018 article on Wallet Hub, Delaware has the lowest tax burden of any State in the contiguous United States. Alaska is #1 of the 50 states, but it's not in the contiguous United States and it's so cold and far away that not many people are going to move there just for the tax benefits.
If you're looking to retire and on a fixed income, every penny you can save is a big deal in choosing where to call home. If you'd like to stay on the East Coast to be close to friends and family but pay less in taxes, you might want to browse all of the Delaware Homes for Sale on our site.
In comparison, our neighboring States were much lower on the list. Pennsylvania #41, New Jersey #43, Maryland #36.
*Assumes “Median U.S. Household” has an annual income of $55,754 (mean third quintile U.S. income); owns a home valued at $184,700 (median U.S. home value); owns a car valued at $24,000 (the highest-selling car of 2017); and spends annually an amount equal to the spending of a household earning the median U.S. income.
**National Average of State and Local Tax Rates = 10.78%
***Assumes “Median State Household” has an annual income equal to the mean third quintile income of the state; owns a home at a value equal to the median of the state; owns a car valued at $24,000 (the highest-selling car of 2017); and spends annually an amount equal to the spending of a household earning the median state income.
See the entire article here: https://wallethub.com/edu/best-worst-states-to-be-a-taxpayer/2416/