PCSing to Delaware

Taxes for Military Families in Delaware

Delaware has no sales tax and some of the lowest effective property taxes in the country. Military pensions qualify for the state's pension exclusion — recent legislation raised the excluded amount substantially for retirees under 60, with those 60 and over getting the larger standard pension exclusion; verify current figures. VA disability is untaxed, and active-duty pay is taxable for residents at Delaware's moderate rates. Disabled-veteran property tax relief is handled largely through county and school-tax credit programs, including a full school property tax credit for qualifying 100% disabled veterans.

Delaware Veteran Benefits Worth Knowing

• Full school property tax credit for qualifying 100% permanently disabled veteran residents (verify residency requirements)
• Expanded pension exclusion covering a substantial portion of military retirement pay, larger at age 60+
• No sales tax on anything, including vehicles' point-of-sale (a document fee applies instead)
• Education benefits for children of certain deceased veterans and reduced-fee licenses and plates for disabled veterans

The Delaware Housing Market for Military Buyers

Kent County around Dover AFB is the affordability story: median prices sit well below the Northeast corridor norm, and an E-5 BAH handles a typical Dover, Camden, or Magnolia single-family home comfortably. New Castle County costs more but stays cheaper than neighboring Pennsylvania and New Jersey suburbs, with no sales tax sweetening the move. Sussex County beach towns run hot with retiree demand, so Guard families there compete with cash buyers.

Top School Districts & Counties in Delaware

• Near Dover AFB: Caesar Rodney School District in Camden is the long-standing military favorite
• Also in Kent County: Smyrna School District draws families splitting the Dover-Wilmington commute
• Near New Castle ANGB: Appoquinimink School District in Middletown is New Castle County's growth standout
• Sussex County: Cape Henlopen School District serves the Lewes-Rehoboth area near the coastal training site

Weather & Climate in Delaware

Delaware's mid-Atlantic climate is moderate — humid 90°F summers, winters with a few snow events rather than constant cover. The real due-diligence items are water-related: much of the state is flat and low-lying, so check flood zones and drainage in Kent County subdivisions and anywhere near the Delaware Bay or inland bays. Coastal Sussex properties carry meaningful flood insurance costs and nor'easter exposure. High water tables make sump pump and crawl-space moisture inspections worthwhile statewide.

Traffic & Commutes in Delaware

Dover AFB commutes are easy — most Kent County drives run under 25 minutes, with Route 1 toll-road access making Smyrna and Milford practical. The main friction is summer beach traffic on Route 1 south of Dover, which can double weekend drives. New Castle ANGB sits off I-95 and Route 141; Wilmington-area rush hour is real but short by big-metro standards, and Middletown commuters should test Route 1 north at peak times before buying.