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Old 04-16-2019, 09:22 PM
 
Location: Mid-Atlantic
32,790 posts, read 36,046,145 times
Reputation: 43523

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Quote:
Originally Posted by rdlr View Post
I'm always amused when people talk about "hidden costs" ..... taxes, etc. But that's o.k. .....less people coming to Delaware.

As I said, we have a large old 3 story home in a small town, and love it! We're over 65 so we get a reduction of $202.30 in school tax.
Here's our tax bill after that senior citizen tax reduction:

CNTY COUNTY TAX 72.90
COLB COUNTY LIBRARY TAX 8.02
S 20 CAESAR RODNEY SCHOOL 202.30
SC20 CAESAR RODNEY CAPITATION 24.00
VOCA VOCATIONAL SCHOOL 37.45
TOTAL COUNTY TAX FOR YEAR 2018 ...... $344.67

Of course, we pay town taxes, which is another bill that includes pick up for trash, yard waste, recycle, bulk items pickup, great police protection (3 officers 24 hours/day) and a cup of red juice and a cookie if we go to the town hall meetings once/month. If you don't want the red juice and cookie you don't get a discount! (could be a hidden cost)
That bill is $605/year
.
Things are taxed and payed differently in other areas. Trash, recyclables, and yard waste have been the biggest hiccups. Four states and four sets of problems. Problems within those states, too.
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Old 04-17-2019, 07:33 AM
 
Location: delaware
698 posts, read 1,048,361 times
Reputation: 2438
Quote:
Originally Posted by nuts2uiam View Post
Are you sure that you pay No school taxes? In Rehoboth, it used to be a reduction after 3 years of residency and now it is 10 years residency for up to $400 reduction.






I've been here for 13 years and began receiving tax reduction after age 65. That hasn't changed, and house is assessed for quite a bit more than $400.
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Old 04-17-2019, 08:42 AM
 
Location: Delaware Native
9,691 posts, read 14,169,518 times
Reputation: 21415
Quote:
Originally Posted by Gerania View Post
Things are taxed and payed differently in other areas. Trash, recyclables, and yard waste have been the biggest hiccups. Four states and four sets of problems. Problems within those states, too.
Of course. It depends on the school district you reside in. I wouldn't necessarily say Delaware has a "problem", though.

Here's Sussex tax rates, per school district, and everything is spelled out.
https://sussexcountyde.gov/sussex-county-annual-rates

I couldn't find the Kent Count tax rates, per school district, but there's a phone # in the Kent County Site to receive school tax rates. On this site, they have it broken down by town..... only for the Town of Camden, they have "Camden Wyoming" which is incorrect. Camden has their own tax structure, and Wyoming has their own tax structure.

Last edited by rdlr; 04-17-2019 at 09:10 AM..
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Old 04-17-2019, 12:52 PM
 
85 posts, read 131,516 times
Reputation: 55
are the school taxes included in the property taxes, or are in addition to?
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Old 04-17-2019, 02:23 PM
 
Location: Delaware Native
9,691 posts, read 14,169,518 times
Reputation: 21415
i am layla.....
Please see my breakdown of the tax bill I receive. I copied it directly from the county web site. I get one bill from the Kent county, which includes all of those items listed.
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Old 04-17-2019, 03:45 PM
 
Location: Center City
7,528 posts, read 10,202,698 times
Reputation: 11018
Before retiring to Delaware thinking is is a tax haven, it’s important to consider how retirement income is taxed. Delaware taxes all retirement income (except for SS) above $12,500. This means that after you collect a total of $12,500 in pensions, 401(k) distributions, and IRA distributions, Delaware collects taxes. When retirees collect more than $60K in combined benefits, these funds are taxed at 6.6%. Income between $12,500 and $60,000 is taxed at graduated rates between 2.2 and 5.55%.

“As a resident of Delaware, the amount of your pension and 401K income that is taxable for federal purposes is also taxable in Delaware. However, person's 60 years of age or older are entitled to a pension exclusion of up to $12,500 or the amount of the pension and eligible retirement income (whichever is less).

The combined total of pension and eligible retirement income may not exceed $12,500 per person age 60 or over. If you are under age 60 and receiving a pension, the exclusion amount is limited to $2,000.”

https://revenue.delaware.gov/information/faqs_pit.shtml

None of this is taxed in PA, whether you are collecting $10,000 or $1,000,000. Not pensions. Not IRA distributions. Not 401(k) distributions. Not Social Security. All tax free in PA.

Lower real estate taxes may balance out the difference for some, but most retirees with higher portfolios will find PA is easily the more affordable when it comes to taxes. Someone with fewer financial retirement assets, however, would most likely benefit more in Delaware unless they are renting.
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Old 04-17-2019, 07:19 PM
 
1,522 posts, read 1,015,274 times
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The retirement tax situation is why my ideal plan is to maintain our primary residence in PA and keep the Delaware place as a second home to pass down to our kids.
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Old 04-17-2019, 07:59 PM
 
Location: Former LI'er Now Rehoboth Beach, DE
13,036 posts, read 17,946,799 times
Reputation: 13969
Quote:
Originally Posted by Pine to Vine View Post
Before retiring to Delaware thinking is is a tax haven, it’s important to consider how retirement income is taxed. Delaware taxes all retirement income (except for SS) above $12,500. This means that after you collect a total of $12,500 in pensions, 401(k) distributions, and IRA distributions, Delaware collects taxes. When retirees collect more than $60K in combined benefits, these funds are taxed at 6.6%. Income between $12,500 and $60,000 is taxed at graduated rates between 2.2 and 5.55%.

“As a resident of Delaware, the amount of your pension and 401K income that is taxable for federal purposes is also taxable in Delaware. However, person's 60 years of age or older are entitled to a pension exclusion of up to $12,500 or the amount of the pension and eligible retirement income (whichever is less).

The combined total of pension and eligible retirement income may not exceed $12,500 per person age 60 or over. If you are under age 60 and receiving a pension, the exclusion amount is limited to $2,000.”

https://revenue.delaware.gov/information/faqs_pit.shtml

None of this is taxed in PA, whether you are collecting $10,000 or $1,000,000. Not pensions. Not IRA distributions. Not 401(k) distributions. Not Social Security. All tax free in PA.

Lower real estate taxes may balance out the difference for some, but most retirees with higher portfolios will find PA is easily the more affordable when it comes to taxes. Someone with fewer financial retirement assets, however, would most likely benefit more in Delaware unless they are renting.
My background was Trust and Estates and therefore can say with no uncertainty that each person needs to do the math for their own situation, to see what works best for them. There is no blanket answer. SS & RR pensions are not taxed in De. There is no sales tax here. Car insurance and Home insurance is considerably cheaper in most cases, again depending upon specific location. Property taxes are considerably lower in Delaware, in fact among the lowest in the nation. Pa has an inheritance tax and De has none and this is not insignificant. If, you look at actuarial tables and take all this into consideration, it is quite possible that Delaware may be a better fit for some. Again, you have to do your homework.

In our case, it did not matter because our choice to live here was driven mostly by the proximity to the beach, relative closeness to our family and then of course the tax benefits. While Pa. is a nice place to visit for us, we didn't want to live there. We have family in Pocono Pines, and have been to Woodloch Pines Resort, Lancaster, Brandywine and perhaps the best place of all Longwood Gardens. But we are always happiest right here in our little state of Delaware.
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Old 04-17-2019, 08:48 PM
 
650 posts, read 765,976 times
Reputation: 198
Older people love the weather in Delaware?
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Old 04-17-2019, 10:19 PM
 
Location: Mid-Atlantic
32,790 posts, read 36,046,145 times
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Quote:
Originally Posted by bluewin888 View Post
Older people love the weather in Delaware?
Some do and some don't.
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