Are you newly retired, or in the planning stages for your retirement? If so, congratulations! You have worked hard and planned for this day. It’s time to enjoy your golden years doing what you love. But have you considered where you’ll live? If you are still weighing your options, you may want to consider three financially savvy reasons to retire in Delaware.
- Tax benefit #1: Delaware is known for small-town charm and beaches, of course, but did you know that Delaware is a tax-friendly state for retirees? If you decide to call Delaware home, the state income tax allows for a $12,500 exclusion from your retirement income. Retirement income sources include 401(k) plans and IRA’s.
- Tax benefit #2: How’d you like to shop till you drop without having to pay sales tax? Other states like Minnesota charge sales tax on food items and services, but don’t charge sales tax on clothing. Delaware, however, does not charge sales tax at all. How’s that for a bonus?
- Tax benefit #3: If you are over the age of 65, there is a $2,500 standard deduction available, too.
- Tax benefit #4: All of the tax benefits listed above add up to a retirement that is both easy on the wallet and will help you protect your retirement nest egg. You worked hard and long for that nest egg, after all.
Of course, Delaware has lots of things to offer for quality of life besides tax benefits, for you to enjoy solo or with your spouse or partner. Indeed, if you are already a Delaware resident, you may want to consider staying put. If not, you may want to consider a move to this retiree-friendly state.