Delaware property taxes remain among lowest in nation - Delaware Business Now (2024)

Delaware continues to have among the lowest property taxes among the 50 states.

That was the finding of report from the financial advice site, Wallet Hub.

The first state ranked among the five lowest when it comes to home property taxes and vehicle property taxes.

The low home property taxes are attractive to residents of high tax states, especially retirees. Neighboring New Jersey has the nation’s highest home property taxes.

In many cases, the property tax savings from a move from New Jersey can be the equivalent of a mortgage payment.

The average American household spends $2,149 on property taxes for their homes each year, according to the U.S. Census Bureau, and residents of the 27 states with vehicle property taxes shell out another $402. Delaware’s home property taxes are about half that figure.

As Delaware continues to struggle with a structural budget deficit, the property tax is often eyed as a potential revenue source for waterway clean-up and a larger share of public school costs.

The same is true for motor vehicle fees, which have been raised in lieu of a higher gas tax.

Delaware’s low property tax offset by the state’s high income tax rate. The state also has no retail sales tax, although businesses pay a gross receipts tax on sales.