Updated July 25, 2026. Quick answer (2026): Delaware still taxes retirement withdrawals (top rate 6.6%), but levies no estate or inheritance tax. Four taxes decide what a move is actually worth — income tax on withdrawals, state estate tax, state inheritance tax, and what probate costs your heirs. This page prices all four for Delaware and shows what each arriving state gains or gives up.
What Delaware charges a retiree in 2026
| Tax | Delaware position, 2026 |
|---|---|
| State income tax | graduated to 6.6% (6 brackets, 2.2%-6.6%) |
| Social Security | not taxed (excluded) |
| Pension / 401(k) / IRA | 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). |
| Estate tax | none (repealed effective 1/1/2018) |
| Inheritance tax | none |
| Probate fee model | reasonable-fee |
| Probate filing fee | varies by county |
| Small-estate limit | $30,000 — distribution of personal estate without grant of letters (small estate affidavit), 12 Del. C. §2306: personal property only, no solely owned DE real estate, 30-day wait, filed with county Register of Wills. |
What you gain by arriving, depending on where you leave
The saving is not a property of Delaware — it is a property of the pair. From some states the income-tax gain is the whole story; from others it is exactly zero and the real money is a death tax you leave behind.
- Moving from Maryland — the top rate falls; the death taxes matter more
- Moving from New Jersey — the top rate falls; the death taxes matter more
- Moving from Pennsylvania — you would START paying state income tax here
Getting the sequence right
Arriving in Delaware is the easy half. The order you do things in — when you establish domicile, when you convert, when you retitle or sell property back home — changes the total, and some of it is irreversible. See finding an advisor for a cross-state move.
What a move to Delaware does not fix
- Domicile is a test, not an address. Your departing state can audit the move. Days present, licence, registrations and where your advisers sit all count.
- Property left behind stays reachable by the old state’s estate rules.
- Probate still applies. No estate tax is not the same as no probate; Delaware uses a reasonable-fee fee model.
- Roth conversions are taxed where you are domiciled that year — see how all 51 jurisdictions tax Roth conversions.
Full detail: Delaware retirement taxes. Compare any pair with the retirement tax comparison tool, or browse all corridors at the relocation hub.
Getting the order right
Move timing, conversion sequencing and estate exposure interact. Know what advice should cost before you buy it — see our advisor cost guide.
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Cite or share this guide
Suggested citation: Clear Money Guide, “Retiring to Delaware: the 2026 Tax Position,” statute-cited; clearmoneyguide.com/retiring-to-delaware-taxes/. Free to cite with attribution. Download the full dataset as CSV, or contact contact@clearmoneyguide.com for custom cuts.
Primary sources
- 30 Del. C. § 1106(b)
- Delaware Division of Revenue Personal Income Tax FAQs
- 12 Del. C. §2306
- 12 Del. C. §2305