Most of the joy we get from our Active Adults Realty blog comes from spotlighting so many wonderful features of a Delaware lifestyle. That means all kinds of posts about our fantastic farm-to-table food culture, our vast recreational opportunities, especially those involving interaction with nature, and of course our beautiful neighborhoods.
This post fits the pattern even if it’s not focusing on things we love. With April 15 IRS deadlines looming closer, I’m talking about taxes instead. Because we all have to pay them. The GREAT news is that you’re probably going to pay a lot less in Delaware than you did in states and localities where taxes are much higher.
I’ll start with a reference to last week’s post. If you’re 65 or older and live in your Delaware home as your primary residence, you’re probably eligible to save some money on the taxes you pay for our public schools. The longer you’ve lived in that home, the more you could be eligible to get back. The deadline for applying for a rebate this year is April 30th. Click here for details:
But that’s just one way to save money. Here are three much more significant scenarios:
Beautiful homes plus lifestyle options minus big tax bills = A Relaxed Peace of Mind
You might have loved Washington, D.C. for its political drama and energy . . . or New York for its go-go city lifestyle or upstate small town pleasures . . . or even New Jersey for all of the fun along its “shore” . . . but you probably didn’t like paying some of the highest property tax bills in the country.
That’s going to change big-time if you make your move to Delaware soon. As I noted in this post last Fall, our property taxes are low enough to make some mortgage companies assume you’ve made a mistake on your loan application. As an example, we spotlighted a recently-sold home in an amenity-rich community with 4 bedrooms, 3 baths and a selling price of $674,500 and an annual tax bill of just $1,718. If your calculator isn’t handy that’s just $143 a month for city, county and school taxes.
This phenomenon stretches all across the state, so whether you land in one of the culturally-rich upstate communities around Wilmington, the highly affordable neighborhoods around our state capitol in Dover, or within an easy drive of our beautiful beaches, you’re going to save a lot of money.
Room to grow your business and your entrepreneurial spirit
We work with lots of people who see retirement on the horizon but who are still highly engaged in their careers. Some of them are even starting or relocating their businesses to our state. One good reason for that is our very business-friendly environment and tax structure, which is why we’re known to many as Corporate Capital USA.” More than 50 percent of the publicly traded companies in the U.S. and more than 60 percent of the Fortune 500 companies are incorporated here, with the low cost being a driving factor.
Based on our experiences and those of so many home and business owners, I can almost guarantee you’re going to find the whole process of incorporating here to be pleasant and free of bureaucratic speed bumps that are so common elsewhere. That’s largely because the state has invested in the systems that ease the way, knowing how crucial corporate and business-revenue is.
As a result, you’ll also find it fast and easy to register your company and keep details of your start-up organization private, gain access to venture capitalists and patenting that amazing new concept or project you developed. This post from The Mill, a vibrant organization for co-working and entrepreneurial thought leadership based in Wilmington lays out these selling points in a very clear way.
Keep more of the money you earn
If you’re still a few years away from retirement you’ll also pay lower taxes as a Delaware resident than in many other states, with your personal income tax ranging from 2.2 percent to 6.6 percent depending on your income. Your standard deduction if you’re single and don’t itemize is $3,250 and if you’re married, filing jointly and not itemizing, it’s $6,500. Learn more here.
Enjoy a lot less ka-ching at the cash register
Are you one of the three people on the planet who hasn’t learned about tax-free shopping in Delaware? If so, welcome to one of the few places in the nation where your groceries, restaurant meals, clothing and most of what you buy for sustenance or pleasure costs a lot less. Think about that as you furnish your new home, fill your kitchen with appliances and wonderful foods, and select your springtime annuals for the yard. In addition to saving thousands of dollars a year in out-of-pocket expenses, you’ll can expand your savings at our tax-free shopping centers and outlets.
Enjoy your savings even more in your beautiful – and affordable – new home
If you lived in a thriving urban neighborhood in Washington, D.C., New York or elsewhere you know that the “law of scarcity” means the small number of townhouses or condominiums translates to some of the highest priced real estate in the country.
While the scarcity element certainly means you’re going to pay a premium for a home right on the ocean or in a quaint downtown setting in Lewes, Rehoboth, Milton and other small towns, the vast majority of the homes we’re selling now are in suburban-styled communities all over the state, with hundreds of thousands of new homes being built over the next few days.
As a result we still have clients experiencing “sticker shock” but in the best possible way, with brand new homes in amenity-rich communities being offered from the mid $200s. Wherever you land, rest assured you’re going to pay a lot less for a lot more.