The fourth annual study of taxes paid by retirees in Delaware put Sussex County’s Georgetown in first place.
The Sussex county seat was closely followed by Milford, with Newark ranking third. Brookside, a census area south of Newark ranked 10th.
Sussex has the lowest property taxes among the three counties in Delaware
The study from SmartAssetanalyzed sales, property, income, fuel and Social Security tax data to rank locations on by tax friendliness for senors
The figures were based on a retiree who receives $50,000 in income.
Delaware is a tax-friendly location for retirees, since it has the region’s lowest property taxes, does not tax Society Security and offers a deduction on income earned through pensions and other sources. The deduction eases the bite of the state’s high income tax rate.
By contrast, Delaware ’s neighbor New Jersey has among the highest property tax rates in the nation as well as high income tax rates. In some cases, property taxes can amount to the equivalent of a year’s worth of mortgage payments.
The index does not include electrical costs at municipally owned utilities in Newark, Dover, Middletown and other communities. Profits from the electric utilities are used reduce property taxes.
See tax chart below: