Pennsylvania to Delaware Retirement Taxes (2026): Every Tax That Changes

Updated July 25, 2026. Quick answer (2026): Moving from Pennsylvania to Delaware in retirement, you would start paying state income tax on withdrawals that Pennsylvania currently exempts entirely. Four separate taxes change when you move — state income tax on withdrawals, state estate tax, state inheritance tax, and what probate costs your heirs. Most comparisons only price the first one.

Pennsylvania vs Delaware: every tax that changes

Every cell is quoted from our statute-cited 51-jurisdiction dataset. Download the full dataset as CSV.

1. What changes on your annual tax bill

This move costs you on income tax, it does not save you. Pennsylvania exempts retirement withdrawals: Not taxed in retirement: distributions from eligible employer-sponsored plans (pensions, 401(k), 403(b)) are exempt when made after retirement upon meeting the plan’s age or years-of-service conditions; Delaware does not: Age 60+: exclude up to $12,500 per person of pension plus eligible retirement income (includes 401(k), IRA, Keogh, 457, plus dividends/interest/capital gains/rental income used for retirement). On $100,000 of withdrawals a year, you would go from $0 of state income tax to a graduated to 6.6% (6 brackets, 2.2%-6.6%) bill. Anyone quoting you a saving on this corridor is comparing wage-earner tax rates, not retiree treatment.

2. What changes at death: state estate tax

Neither state levies an estate tax. Pennsylvania: none Delaware: none (repealed effective 1/1/2018) Only the federal estate tax applies.

3. What changes at death: state inheritance tax

An inheritance tax is charged to the person who receives the money, by relationship — not to the estate. Pennsylvania: yes – rates by relationship, from the first dollar (no exemption thresholds): 0% surviving spouse and parent-to-child under 21; 4.5% lineal heirs (children, grandchildren, parents); 12% siblings; 15% all others; charities/government exempt; family farm and family business exemptions available Delaware levies none. Nieces, nephews, siblings and unmarried partners are the heirs most affected.

4. The one nobody prices: what probate costs your heirs

Pennsylvania uses a reasonable-fee fee model (No statutory percentage. Compensation of personal representatives and attorneys must be ‘reasonable and just’ (20 Pa.C.S. §3537). Courts often reference the informal ‘Johnson estate’ percentage guideline schedule, but it is case-law custom, not statute.); Delaware uses a reasonable-fee model (PR commissions and attorney fees allowed as reasonable by the Court of Chancery (12 Del. C. §2305 authorizes such commissions as the court allows); no current statutory percentage schedule verified.). Filing fees — Pennsylvania: Register of Wills fees are set per county and typically scale with estate size; commonly ~$100-$500 to open probate. No statewide schedule — varies-by-county, representative range only (unverified). Delaware: varies by county

Full detail: probate cost by state and small-estate limits by state.

Does this actually apply to you?

Below $1,000,000 no US state estate tax applies anywhere — Oregon has the lowest threshold in the country and that is where it starts. So for most estates the whole “escape the death tax” framing is irrelevant, and the only thing that changes when you move is your annual income tax. Here is exactly where the line falls for this pair: Pennsylvania also levies an inheritance tax, charged to the heir by relationship regardless of estate size.

Thresholds are the 2026 figures in our verified dataset and apply to the taxable estate. Federal estate tax is separate and far higher. Test your own number with the comparison tool.

Probate cost in each state, specifically

Pennsylvania uses a “reasonable fee” standard with no schedule, and its small-estate route does not clear a solely owned house. Delaware uses a “reasonable fee” standard with no schedule, and its small-estate route does not clear a solely owned house. Both states land in the same bucket on that question. Full figures with the governing statute, the court filing fee and the small-estate threshold: Pennsylvania probate cost and Delaware probate cost.

Four taxes, two states, one order of operations

Everything above changes together: what Pennsylvania stops taking on withdrawals, what Delaware does not take at death, and what probate costs in each. The order you do things in — when you establish domicile, when you convert, when you retitle property — changes the total, and some of it cannot be undone afterwards. If a move is genuinely on the table, here is what to look for in an advisor who knows both Pennsylvania and Delaware. If you would rather price it yourself first, the two-state comparison tool is free and asks for no email.

Will Pennsylvania still tax me after I move to Delaware?

Not on your retirement withdrawals, once you genuinely change domicile — but that is a harder test than a change of address, and what you leave behind stays in reach.

• Domicile is a test, not a mailing address. A departing state can and does audit residency. Days present, voter registration, driver’s licence, where your doctors and advisers are, and where you keep what you value all count.
• Real property left behind stays taxable. Keeping a home in Pennsylvania can keep part of the estate within reach of Pennsylvania rules even after you become a Delaware resident.
• A Roth conversion is taxed where you live in the year you convert. Sequencing a conversion after establishing the new domicile is often worth more than the annual saving — see how all 51 jurisdictions tax Roth conversions.

If you keep a home in Pennsylvania, what happens at death?

Changing domicile moves you. It does not move the house. Pennsylvania levies an inheritance tax, and it reaches a nonresident decedent’s real property situated there — so a home kept behind after the move stays within Pennsylvania’s reach even once Delaware is your legal home for every other purpose. For a nonresident decedent, all real property and tangible personal property located in Pennsylvania at death is taxable. Intangible personal property of a nonresident is not taxable.

Same rates as for residents, by relationship, and Pennsylvania inheritance tax has no exemption threshold – it applies from the first dollar. Filed with the Department’s Nonresident Tax Unit, not the Register of Wills. Due within nine months; 5% discount if paid within three. The practical consequence is the part most summaries skip: there is no threshold at all, so the Pennsylvania property is taxed from the first dollar. Authority: Form REV-1737-A (Nonresident Decedent).

This is the exposure that survives a move, and it is the one worth pricing before the move rather than after. The house also stays within that state’s probate jurisdiction, so the estate faces a separate ancillary proceeding there on top of the probate where you live — the ancillary probate calculator prices that second proceeding. Confirm the current figures with the state revenue department or a licensed professional before acting — thresholds move, and the arithmetic depends on the whole estate, not just the house.

Full state detail

Every figure above is summarized. The complete statute-cited breakdown for each state: Pennsylvania retirement taxes and Delaware retirement taxes. To compare any other pair, start at the retirement tax relocation hub.

Widen the comparison

This page prices one corridor. To see every destination Pennsylvania retirees consider and every origin state moving to Delaware, start there instead. For any pair not covered, the retirement tax comparison tool runs all 51 jurisdictions, and the probate cost calculator works out what settling the estate costs in each.

Talking this through

Relocation timing, Roth conversion sequencing and estate exposure interact, and the order you do them in changes the total. If you want a second opinion, understand what it should cost first — see our advisor cost guide.

Disclosure: the button above routes to an advertising partner and Clear Money Guide may earn a referral fee. See our Affiliate Disclosure.

Primary sources

• 72 P.S. § 7301(d) (compensation definition excluding retirement payments)
• 61 Pa. Code § 101.6
• PA DOR guidance: Gross Compensation / retirement income
• 72 P.S. sec. 9116
• 30 Del. C. § 1106(b)
• Delaware Division of Revenue Personal Income Tax FAQs
• 20 Pa.C.S. §3537
• 20 Pa.C.S. §3102
• 12 Del. C. §2306
• 12 Del. C. §2305

Methodology: every figure is quoted from Clear Money Guide’s statute-cited 51-jurisdiction datasets, compiled from state statutes, session laws and revenue-department publications and adversarially verified in July 2026. Nothing here is personalized tax or legal advice. Confirm your own facts with a qualified adviser before you move.