Moving to Delaware

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.

  • This page covers every Delaware-destination route we track.
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Delaware at a Glance

Taxes

State income tax6.6%
State sales taxNone
Property tax (eff.)0.54%

Climate

Avg annual temp54°F
Annual precipitation46″

Humid subtropical with hot summers and cold winters.

Cost of Living

COL index101.7 (US=100)
Avg electric bill$151/mo

Why People Move to Delaware

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.

  • Combined with corporate-friendly laws (Delaware is where most major US corporations are incorporated), the state has business and lifestyle infrastructure that punches above its population weight.

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.

  • The beaches (Rehoboth Beach, Dewey Beach, Bethany Beach) are East Coast summer favorites.
  • The state is small enough to cross in 30 minutes in some directions, giving residents access to multiple metro areas.

Delaware DMV & Registration

Delaware requires you to get a Delaware driver's license within 60 days of establishing residency.

  • Delaware's DMV handles both registration and licensing.
  • Delaware has no front license plate requirement.
  • Delaware has no state sales tax on vehicle purchases — this makes buying a car in Delaware attractive for nearby residents.
Official Delaware DMV →

Frequently Asked Questions

How much does it cost to move to Delaware?

Moves from neighboring states (Maryland, Pennsylvania, New Jersey) run $1,000–$3,000.

  • Moves from further north or south run $2,000–$5,000.
  • Longer moves from the Midwest or South run $2,500–$6,000.

What is Delaware's income tax rate?

Delaware has a graduated income tax with a top rate of 6.6% starting at $60,000.

  • Rates start at 2.2% on income over $2,000.
  • There's no sales tax and no inheritance tax.
  • Delaware exempts a portion of pension income and Social Security for older residents.

What are the best areas to live in Delaware?

Wilmington: Delaware's largest city, financial and corporate services hub, 25 miles from Philadelphia, urban neighborhoods with walkable amenities, $250K median home.

  • Newark: home of University of Delaware, small-city feel, commutable to Wilmington and Philadelphia, $320K median.
  • Dover: state capital, affordable, slower pace, $230K median.
  • Rehoboth Beach area: popular beach community and retirement destination, significantly higher prices near the ocean.
  • Sussex County: rural, affordable, growing retiree population.

Is Delaware really tax-free for shopping?

Delaware has no state sales tax — not even a low rate.

  • Every retail purchase, from groceries to electronics to clothing, is sales-tax-free.
  • For residents from neighboring states (Pennsylvania: 6%, Maryland: 6%, New Jersey: 6.625%), this creates meaningful savings on everyday purchases and large items like appliances, furniture, and vehicles.
  • Delaware is a common day-trip shopping destination from the region for exactly this reason.

What is Delaware's proximity to major cities?

Wilmington to Philadelphia: 25 miles (30–45 minutes without traffic).

  • Wilmington to Baltimore: 75 miles (70–90 minutes).
  • Wilmington to Washington D.C.: 100 miles (90–120 minutes).
  • Even the southern beach communities have reasonable access to metro areas via Route 1 and Route 113, though summer beach traffic adds significant time on weekends.