Delaware

Moving from North Dakota to Delaware would RAISE your total state and local tax burden from 8.9% of income to 12.4% of income — an increase of +3.5 pts. On a $100K household budget, that is roughly $3500 more per year in combined state and local taxes.

Delaware top marginal income tax rate is 6.6%, versus 2.5% in North Dakota. Compare across your expected income bracket — top rates kick in at different thresholds in each state.

Delaware has NO state sales tax (one of only 5 states). Combined rate: 0.00% (local only where applicable).

Delaware median effective property tax rate is 0.61% of home value. On a $400,000 home, that is roughly $2,440/year. Property tax typically funds schools, municipalities, and county services — rates vary sharply within a state by school district.

Delaware has NO state estate tax and NO state inheritance tax. Heirs are subject only to federal estate tax (over $13.99M in 2025). This is favorable for wealth transfer.

In Delaware: Social Security is not taxed. Pensions and 401(k)/IRA withdrawals are partially taxed.

Delaware capital gains treatment: Taxed as regular income up to 6.6%. Compare to federal long-term capital gains rates (0%, 15%, or 20%) — some states offer preferential treatment for long-term holdings, while others tax capital gains as ordinary income.

Delaware gas tax is 23.0¢/gal — 0.0¢/gal the same as North Dakota's 23.0¢/gal. For a 15,000 mile/year driver getting 25 mpg, each 1¢/gal of gas tax = about $6/year.

Delaware allows local income, occupational, or earnings taxes. Wilmington imposes a 1.25% earned income tax on residents and non-residents working in the city. These are often overlooked but can add 1–3% to your effective rate.

Delaware residency rules: Domicile + 183-day statutory residency test. Physical presence plus permanent place of abode. To establish residency for tax purposes, typical steps include: update driver's license and vehicle registration, register to vote, file a homestead declaration, close home-state bank accounts where possible, and spend clearly more than 183 days in your new state. If your former state is aggressive (e.g., CA, NY, NJ, OR), keep documentation of every day spent in each state.

Delaware recent tax law changes: Estate tax repealed in 2018; no major income tax changes in 2024-2025. Gross Receipts Tax on businesses continues (no state sales tax). Delaware decoupled from federal One Big Beautiful Bill Act for R&D expenditures, bonus depreciation, and special depreciation for qualified production property (2025).

For the most current tax information in Delaware, visit the official source at https://revenue.delaware.gov/. Tax laws change annually; verify rates and rules before making a permanent move. Consult a CPA for advice specific to your situation.