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Yes, Delaware can be a good place to retire. Many retirees are drawn by its tax-friendly policies, mild climate, and inviting coastal towns like Lewes and Rehoboth Beach. You’ll find scenic drives, small-town charm, and easy access to the water.
Still, life in the First State has trade-offs. Housing near the coast can be costly, public transportation is limited outside cities, and rural internet service can be unreliable. Winters bring occasional ice and snow, and some areas face hurricane and flooding risks.
Whether you prefer a lively beach town or a quieter inland setting, knowing the First State’s advantages and drawbacks helps you plan wisely. This article explains why Delaware is among the best states to retire.
What You’ll Learn
The benefits of retiring in Delaware
The challenges of being a retiree in the First State
The frequently asked questions people ask about retiring in Delaware
Summary
Financial Benefits
Tax-Friendly
Moving to Delaware for retirement means keeping more of your money. You’ll pay no state tax on your Social Security benefits. In fact, you can exclude up to $12,500 of pension or retirement-account income from state tax if you’re age 60 or older. Delaware also has no sales tax.
Property taxes are another benefit. The effective tax rate in Delaware is 0.50 percent, ranking the state as the 10th lowest in the country.
Keep in mind that in some counties, the effective property tax rate can be higher or lower. Some examples include:
New Castle County: 0.76 percent. Home to Wilmington, the state’s most populous city.
Kent County: 0.47 percent. Home to Dover, the state’s second most populous city.
Manageable Cost of Living
The cost of living in Delaware is 1.88 percent higher than the rest of the country. There are many reasons for this. Many cost factors, such as housing, rent, electricity, and healthcare, are more expensive compared to the national average. Groceries are lower in the First State, though.
The table below shows how retiring in Delaware costs compared to the national average:
It may seem that living in the First State is more expensive compared to other states. Nevertheless, costs are manageable if you compare expenses with pricier areas like New York and Maryland.
One major expense is housing. Delaware homes, on average, are around 25% more affordable than properties in New York. Homes in Massachusetts, meanwhile, are almost 48% more expensive than in the First State.
The table below shows the cost of living average in Delaware and how lower it is in contrast to nearby states:
This is why it makes sense to:
Look into independent living communities: These can curb maintenance costs that come with owning a home, like property repair.
Use lifestyle choices to reduce costs: Staying near community amenities, like parks, libraries, and senior centers, can help you enjoy multiple activities at low or zero cost.
Lifestyle and Location
Mild Climate
Summers are warm and often sunny, and winters tend to be moderate, making outdoor activities easier. With abundant sunshine and coastal influence, the First State supports an active lifestyle without extreme heat or cold.
This means there are many things to do in Delaware year-round, like:
Bird-watching: One of the best spots to find and identify birds in the state is in the Bombay Hook National Wildlife Refuge. It contains more than 16,000 acres of tidal salt marshes, freshwater pools, and grasslands.
Hiking: All levels of hikers are welcome in Brandywine Creek State Park. It offers more than 1,100 acres and several miles of trails.
Beautiful Coastal Communities
Many beaches in Delaware offer a mix of peaceful living and lively coastal fun. These are near towns like:
Rehoboth Beach: Known for its iconic boardwalk, restaurants, shops, and vibrant atmosphere.
Bethany Beach: Offers a more relaxed pace compared to some of the busier beach towns.
Accessible Healthcare
Delaware offers access to strong healthcare options. The state hosts leading medical networks like ChristianaCare. You’ll find a wide range of Medicare Advantage plans tailored for older adults. Reliable senior-care facilities and services also support your long-term needs.
Some hospitals stand out for retirees, such as:
ChristinaCare Christiana Hospital: Offers nationally-ranked care for heart, cancer, and orthopedics.
Bayhealth Medical Center: Offers strong cardiac, orthopedic, and rehab support.
Other Considerations
Coastal Storm Risks
Living in Delaware means facing coastal storm risks. The official hurricane season runs from June 1 to November 30. Even though major hurricanes are rare, storm surges, flooding, and wind damage can affect low-lying shore towns.
Managing this may involve:
Building a personalized emergency plan: Plan where you’ll shelter or evacuate if a storm hits.
Signing up for local alerts: The Delaware Emergency Management Agency operates the Delaware Emergency Notification System. This warns you of emergencies that can affect your health and safety.
Higher Housing Costs in Coastal Areas
Many Delaware coastal towns rank among the best places to retire, thanks to their ocean access and relaxed pace. That same proximity, though, raises housing costs compared to inland areas.
The table below shows how higher the average home prices are in some coastal Delaware towns compared to the rest of the state:
Source: 2025 data from Zillow.com
To lower home ownership costs, you can:
Choose a home outside the prime beachfront zone: Homes slightly away from the beach often cost less.
Consider a condo or townhouse rather than a single-family home: Shared maintenance and insurance costs can reduce upkeep.
Limited Public Transportation Outside Urban Areas
Public transportation is limited outside major Delaware cities and towns. The state system DART First State provides bus routes across counties, but service is sparse in many rural and coastal locations.
To manage this, you can:
Use Dart First State’s specialized transit services: They offer paratransit if you have difficulty using regular buses.
Explore local volunteer or nonprofit ride programs: Some agencies, like the Delaware Aging & Disability Resource Center, connect you with resource specialists.
Winter Conditions
Expect generally milder winters than in the far North, but you still need to be ready for snow and icy conditions. Average winter highs on the coast fall in the low 40s °F, with overnight lows dropping into the 20s. Occasionally, you’ll get snow or freezing rain, especially inland or during a coastal storm.
Coping with this may involve:
Keeping your home warm: Remember that older adults lose heat more quickly.
Dress in layers: Wet or cold clothing raises the risk of frostbite or hypothermia.
Final Thoughts: Retiring in Delaware
Delaware offers a mix of coastal charm, tax advantages, and welcoming communities that appeal to retirees seeking comfort and convenience. From scenic beaches to walkable historic towns, the state provides a slower pace without sacrificing access to healthcare, recreation, and amenities.
Whether you stay for a season or for life, Delaware helps keep you connected and content.
Move Your Car to the First State with AmeriFreight
Let AmeriFreight Auto Transport handle your vehicle shipment before you settle into Delaware’s coastal charm, historic towns, and peaceful countryside. Our agents work with licensed carriers nationwide to help make your move reliable and easy.
With more than 20 years of experience, AmeriFreight helps get your vehicle ready for scenic drives through Rehoboth Beach, Dover, or Wilmington.
Frequently Asked Questions (FAQs)
Are there sufficient public transportation options for seniors who may eventually need to stop driving, particularly in areas outside of Wilmington and Dover?
Yes, some senior-transportation programs exist statewide through DART First State and local nonprofits. But outside major cities in Delaware, like Wilmington and Dover, the public transit grid remains limited for non-drivers.
How does the overall cost of living in popular Delaware retirement towns like Lewes or Rehoboth Beach compare to the national average?
In popular coastal towns like Rehoboth Beach and Lewes, the overall cost of living runs about 8 percent to 10 percent above the U.S. average.
What are the pros and cons of retiring in coastal Delaware (like Bethany Beach) versus moving to a more inland area (like Middletown)?
Settling in one of the best places to retire in Delaware, like Bethany Beach, offers you ocean access, a relaxed atmosphere, and charming beach amenities. Yet housing and upkeep tend to be more expensive, and summer crowds or storms may impact your lifestyle.
Moving inland to a place like Middletown gives you greater affordability, a quieter daily life, and easier access to everyday services. You may, though, trade away full beach-town charm and direct waterfront views.
How reliable is the internet and cellular service in the more rural, western parts of Kent and Sussex Counties for a retiree who works remotely part-time?
In rural areas of western Kent County and Sussex County, Delaware, internet and cell service are improving but remain mixed.
The Delaware Broadband Office is actively expanding service in underserved zones. You may still face slower speeds, fewer provider choices, or higher costs compared to more urban locations in other Delaware counties.
Disclaimer
The information provided in this guide is for general informational purposes only and does not constitute legal, financial, or professional advice. While efforts have been made to ensure the accuracy and timeliness of the content, laws, regulations, and local conditions are subject to change without notice.
Readers should not act upon this information without seeking appropriate professional counsel, especially in financial and legal matters.
