Delaware is the second-smallest state in the country but punches above its weight as a relocation destination — combining no sales tax, no inheritance tax, proximity to Philadelphia, Baltimore, and Washington D.C., and a cost of living right at the national average at 100.1.
Humid subtropical with hot summers and cold winters.
Delaware's no-sales-tax status is the most visible financial advantage for residents: every retail purchase is sales-tax-free, adding up to meaningful savings for households that would otherwise pay 6–8% on most purchases.
Delaware's geography is useful: Wilmington is 25 miles from Philadelphia, 75 miles from Baltimore, and under 2 hours from Washington D.C. and New York City.
Delaware requires you to get a Delaware driver's license within 60 days of establishing residency.
Moves from neighboring states (Maryland, Pennsylvania, New Jersey) run $1,000–$3,000.
Delaware has a graduated income tax with a top rate of 6.6% starting at $60,000.
Wilmington: Delaware's largest city, financial and corporate services hub, 25 miles from Philadelphia, urban neighborhoods with walkable amenities, $250K median home.
Delaware has no state sales tax — not even a low rate.
Wilmington to Philadelphia: 25 miles (30–45 minutes without traffic).