Compare taxes and see how much you save moving from Maryland to Delaware
Maryland has progressive state income tax rates from 2% to 5.75% PLUS county taxes of 2.25% to 3.2%, while Delaware charges progressive rates from 2.2% to 6.6%. Living in Delaware saves $2,450/year on $100k income vs Maryland. Delaware's biggest advantage: NO SALES TAX (vs MD's 6%). Delaware also has much lower property taxes (0.61% vs MD's 1.09%). Overall, Delaware offers significant tax advantages. The MD-DE border is popular for tax planning, especially for retirees.
Progressive + County Tax
State 2-5.75% + County 2.25-3.2%
Progressive
7 brackets, up to 6.6%
At $100,000 income:
That is $204/month back in your pocket!
| Income | MD Tax | DE Tax | Savings | 10-Year |
|---|---|---|---|---|
| $50,000 | $3,475 | $2,212 | $1,263 | $12,630 |
| $100,000 | $7,450 | $5,212 | $2,238 | $22,380 |
| $200,000 | $16,200 | $11,812 | $4,388 | $43,880 |
| $500,000 | $43,000 | $31,612 | $11,388 | $113,880 |
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Moving from Maryland to Delaware? Multi-state returns are tricky—MD county tax, partial-year residency, DE no sales tax. Get matched with a CPA who specializes in MD/DE tax planning.
⚠ Not for simple single-state returns. Free filing is fine for straightforward W-2 situations.
Get Matched With a CPA →On $100,000 income, Delaware saves $2,450/year in income tax (DE 5.2% vs MD 8.95% combined state + county). DE has NO SALES TAX (saves $600/year vs MD 6%). Property tax savings are massive: DE 0.61% vs MD 1.09%. On a $500k home, DE pays $3,050/year vs MD $5,450/year—difference of $2,400/year. Total savings: $5,450/year. Over 10 years: $54,500.
Tax savings and beach access. Delaware has lower income tax on retirement income (5.2% vs MD 8.95%), NO sales tax (vs MD 6%), and much lower property tax (0.61% vs 1.09%). For retiree with $80k pension + $400k home: DE saves $2,000 income tax + $400 sales tax + $1,640 property tax = $4,040/year. Plus Rehoboth/Bethany Beach proximity. Many MD retirees move to DE coastal towns.
Yes, especially among retirees. In 2023, 8,472 people moved MD → DE (vs 4,134 DE → MD), net gain of 4,338 for Delaware. Migration drivers MD → DE: tax savings ($5,450/year at $100k), no sales tax, Delaware beaches, lower cost of living (15% cheaper). Reverse migration (DE → MD) driven by: job opportunities (Baltimore/DC), better schools, more amenities.
No—Maryland will tax MD-source income regardless of residency. If you work in MD but live in DE, you pay MD income tax on those wages. However, you save on: DE's no sales tax (vs MD 6%), lower property tax (0.61% vs 1.09%), and any non-MD income is only taxed by DE at lower rates. Best strategy: work remotely for non-MD company while living in DE.