Consisting of just three counties, Delaware is the second-smallest state in the U.S. Its nickname is “The First State” in honor of being the earliest colony to ratify the Constitution in 1787. Although it may be small, there’s nothing diminutive about this state. It boasts beautiful landscapes, famous coastlines, and a rich cultural heritage that makes it a place that over one million people are proud to call home.
It’s also a highly popular destination for retirees due to amenable financial benefits, generally favorable weather, and excellent quality of life. If you’re weighing up the idea of moving to Delaware for your retirement, this article covers everything you need to know to decide if it’s the right state for you.
Retiring in Delaware: Pros and Cons
Pros
- Affordable and Tax-Friendly – Overall, the cost of living in Delaware is slightly higher than the national average, but it’s quite affordable relative to other states in the Northeastern U.S. Paired with a tax environment that’s very friendly to retirees, it can be a great option for active adults.
- Diverse Lifestyles – Despite its slight size, Delaware has plenty of diverse regions that may be attractive to retirees. Some may prefer the laid-back coastal towns to the bustling cities, or the warmer climate of the southern region over the cooler northern one. This state packs a lot into a small package for active adults who like a change of pace every once in a while.
- World-Class Golfing – Delaware is a popular destination for golfers, due to its high-quality golf courses and moderate year-round weather. There are nearly 50 golf courses and a strong golfing community that hosts regular tournaments and events statewide, making Delaware a great place to retire for active adults who like to hit the links.
- Proximity to Metropolitan Cities – Delaware is conveniently located near several major population hubs including Washington D.C., Baltimore, Philadelphia, and New York City. This provides the opportunity to live in a less-populated, lower-cost state while still having access to all of the exciting big-city amenities of a metropolitan area.
Cons
- Weather Risks – Some active adults may be turned off by the heat and humidity of the summers in Delaware, but there are other weather considerations to take into account before moving here. Although they are rare, Delaware does have the potential to experience tropical storms and other severe weather events.
- Summer Tourism – Along with the beautiful beaches comes the scores of tourists who flock to the region every summer. Millions of people visit Delaware each year, and while this can make for a fun, lively environment for some residents, it can also cause increased traffic and crowding in popular areas.
- Limited Public Transit – Retirees who want to live a car-free lifestyle may find this difficult in Delaware. Even the major cities in the state have very limited options. The need to rely on a personal vehicle can increase living costs and also limit accessibility options for individuals who are unable to or prefer not to drive.
Delaware Climate
The entire state of Delaware lies in a humid subtropical climate zone, which means residents can expect four distinct seasons with long, hot summers and cool to cold winters. Generally, the state has a moderate climate year-round. As a coastal state, the Atlantic Ocean has a significant effect on the climate of Delaware. Cities further inland experience higher and lower average temperatures, less mild weather, and less precipitation throughout the year compared to ones along the coast. Even though it is such a small state, there are also notable climate differences between the southern and northern regions, with the latter being cooler and wetter.
Average Temperatures
During the summer months, temperatures are fairly high with averages falling between 75 to 90 degrees. The perceived temperature can often feel slightly higher due to the humidity, but coastal cities benefit from cooling ocean breezes.
In the winter, the temperature averages range from 25 to 45 degrees, though freezing temperatures are rare during the day. The yearly temperature averages fluctuate along with the seasons, with January being the coldest month and July the hottest.
Weather Conditions
Because of the humidity and proximity to the ocean, Delaware experiences higher-than-average rainfall in the summer months, although the wintertime sees less snowfall than the national average.
Rainfall is mostly concentrated in the summer, with brief afternoon thunderstorms, but the mild winter temperatures also make a few inches of rain per month possible all year round. On the other hand, snowfall only occurs between November and March, with a peak in late January, though it is rare to see any significant accumulation.
Outdoor Recreation
Thanks to the generally moderate weather conditions, retirees moving to Delaware will have plenty of opportunities to get outside and enjoy the state’s beautiful natural resources. Any location in the state is less than an hour drive away from the Atlantic coast, which is great for active adults who enjoy beachgoing, boating, fishing, and other aquatic activities. There is also an abundance of state parks and nature preserves for activities such as camping, hiking, picnicking, and more.
Delaware Taxes
Overall, Delaware is considered quite tax-friendly to retirees. In addition to low property and income taxes, there’s no statewide sales tax, which helps reduce the cost of groceries, medicines, and other luxury or everyday purchases by hundreds of dollars each year. There’s also no estate tax in Delaware, ensuring that your loved ones will receive the full value of any inheritances left to them.
Property Taxes
Delaware has the seventh-lowest property tax rates in the U.S.–around 0.53% in 2024. Median home costs in the state are slightly lower than the national average, as well as lower than surrounding states. These factors combined make property taxes in Delaware some of the lowest in the country, which is ideal for retirees looking to purchase a home here. It’s also worth noting that the three counties in Delaware have slightly different tax rates, with New Castle County in the north being the highest, and Sussex County in the south being the lowest.
Retirement Income Taxes
In Delaware, Social Security benefits are fully exempt from state income taxes. All other forms of retirement income–such as pensions and retirement savings accounts–are taxed. However, Delaware’s state income tax rates are fairly low, ranging around 2-6%.
Tax Exemptions for Retirees
Besides Social Security benefits, there are no other notable tax exemptions for retirees in Delaware. However, all residents who are 60 or over receive a significant income tax deduction of $12,500, and this applies to all forms of retirement income. There’s also a “senior school property tax credit” available for retirees who are 65+ and maintain primary residence in the state, which can reduce property taxes up to $500 per year.
Delaware Health Care
Delaware has a top-tier health care system, with providers and facilities that cover everything from routine checkups to specialized treatment. Also, because the state is so small, residents never have to travel far to find quality care.
ChristianaCare is not only one of the largest health networks in the state, it’s also ranked #1 according to U.S. News. It’s rated high-performing in two adult specialties and 13 different procedures and conditions. The #2 ranked provider is Beebe Healthcare, which is recognized as high-performing in seven different procedures and conditions. Their primary facility is located in Lewes in southern Delaware, but they have other locations throughout the state as well.
Where to Live in Delaware
As we mentioned earlier, Delaware packs a lot of diversity into a small package, offering everything from quiet, rural towns to exciting, coastal cities. Regardless of your preferences, the state has plenty of 55+ communities with their own unique benefits, such as low-maintenance living, attractive amenities, and social opportunities with like-minded neighbors. Check out some of our featured communities below or contact 55places.com today to learn more about homes for sale in Delaware.
Featured 55+ Communities
Heritage Shores – Bridgeville, DE
Low $300ks – High $500ks
Heritage Shores is a golf course community with over 1,800 single-family and attached homes. The community features a 28,000-square-foot clubhouse with a ballroom and various game and hobby studios. There are also fitness facilities, a full-service restaurant, and a pro shop to gear up before a round of golf at the community’s 18-hole championship course.
Independence – Millsboro, DE
High $400ks – Low $800ks
Independence is a 55+ community that completed construction in 2021. This community consists of 455 single-family homes, ranging from two to four bedrooms with green features such as solar panels and geothermal heating to help reduce utility costs. Homeowners also benefit from a 24,000-square-foot community clubhouse chock full of luxurious amenities.
Heritage Creek – Milton, DE
Low $400ks – High $500ks
Heritage Creek is an up-and-coming community that will feature 400 homes available upon completion. The collection of single-family and attached homes is built in a unique Victorian-style architecture. Offering 12 different floor plans and models to choose from, this community is sure to have a home to match your lifestyle and needs.
Noble’s Pond – Dover, DE
Mid $300ks – High $400ks
Noble’s Pond is another community that’s nearing completion. It will have a mix of 800 single-family and attached homes available both new and for resale. The homes are built in a neo-traditional style hearkening back to American neighborhoods of the 1950s and 60s. The community also has a clubhouse with plenty of opportunities for recreation and leisure, and an activity director on staff to ensure residents will always be able to keep their social calendar full.
Columbia Place – Wilmington, DE
High $800ks – Low $1Ms
Columbia Place is a luxurious and intimate 55+ community at the very north of Delaware, only 30 minutes from Philadelphia, PA. This gated community, which began construction in 2019, will consist of just 61 attached and single-family homes, ranging from roughly 2,600 to 3,600 square feet. The builder Reybold implemented single-story construction and open-concept floor plans to prioritize accessibility without compromising on space.
Explore Active Adult Living in Delaware
Ready to find your perfect retirement destination in Delaware? Whether you’re drawn to its tax-friendly benefits, vibrant communities, or beautiful coastlines, 55places.com is here to help. We’ll connect you with one of our local real estate experts today to help you learn more about the 55+ communities in Delaware and find the home that fits your lifestyle. Let us guide you every step of the way toward making your dream retirement a reality. Contact 55places.com now and start your journey!
