Before moving to another state when you retire consider any applicable tax burdens and all living in Delaware has to offer.
When you plan for retirement taxes may not be one of the first things you think about when thinking of relocating to another state. With the 2018 estate tax repeal, now is the time to examine how living in Delaware can positively impact your tax burden. The different types of state taxes you will need to pay are among the numerous costs to consider when you are building your retirement plan of action. There are numerous ways a state generates revenue such as: sales tax, excise tax, license taxes, income tax, property tax, estate tax, and inheritance tax.
For many, the state of Delaware is either the most tax-friendly state or among one of the best states to consider. Granted, low taxes alone are not enough reason to relocate after retirement but this is an important consideration. So, what do the 2018 state tax repeal changes mean for you?
Understanding the 2018 Estate Tax Repeal
The state’s estate tax repeal went into effect January 1, 2018. Governor John Carney, Jr. signed a stand-alone estate tax repeal bill to remove this specific tax from individuals dying after December 31, 2017. Delaware estate taxes may still be owed on estates of those who died in 2017 or earlier if the total value of the estate assets is more than $5.49 million. An amount less than this figure will have no estate tax due. The estate will have to file a tax return if the deceased owned valuable real estate in Delaware, even if the deceased was not a Delaware resident. Additionally, for tax purposes, it doesn’t matter whether or not the asset goes through probate. For real estate jointly owned with someone else, only the deceased’s interest is included in the estate taxes.
Be sure to download our free Delaware Relocation Guide. It’s chock-full of information about the various regions statewide plus includes links to many resources. If you’ve been considering Delaware as your relocation destination, schedule an appointment to discuss where you’d like to live and get the conversation started.