When it comes to owning a home, property taxes are one of the biggest ongoing expenses buyers need to consider. In 2025, Delaware continues to stand out as one of the most tax-friendly states in the country, offering some of the lowest property tax rates in the nation. For families, retirees, and first-time buyers, this difference can mean thousands of dollars in savings each year compared to nearby states. By contrast, Pennsylvania, Maryland, and especially New Jersey often place a much heavier burden on homeowners. Understanding these differences isn’t just about saving money today—it’s about long-term affordability and financial stability. Delaware’s favorable tax structure also makes it a magnet for out-of-state buyers looking for relief from high-tax regions. Before making a move, it’s essential to see how Delaware stacks up against its neighbors.

Delaware’s Low Property Tax Profile

Delaware consistently ranks among the states with the lowest effective property tax rates in the country. SmartAsset reports an average effective rate of 0.55%, translating to roughly $1,674 annually on a median-valued home—one of the most affordable in the U.S.

Breaking it down further by county offers even more savings:

• Sussex County leads with an ultra-low 0.35% rate, or about $1,122 per year. 
• Kent County sits around 0.47%, or $1,291 annually. 
• New Castle County—which includes Wilmington—is slightly higher at 0.76%, but still modest, equating to about $2,369 annually. 

Pennsylvania’s Higher Tax Burden

Pennsylvania has a much higher property tax rate, averaging 1.19%—more than double Delaware’s effective rate. On a home valued at, say, $300,000, this means nearly $3,570 in annual property taxes—significantly more than a comparable property in Delaware.

PA does offer relief through programs like the Property Tax/Rent Rebate, especially beneficial for retirees. Still, even with rebates, many homeowners pay substantially more than they would in Delaware.

Maryland: Mid-Range Tax Rates with Credits

Maryland’s average effective property tax rate is 0.95%, significantly higher than Delaware’s but lower than Pennsylvania’s. That equates to $3,590 annually on a median-valued property at roughly $380,500.

However, Maryland offers local credits—like property tax deferrals for seniors and renters’ tax credits—which can soften the impact for qualified homeowners.

New Jersey: National Leader in Property Taxes

New Jersey consistently ranks as having the highest effective property tax rate in the nation—around 2.2%–2.3%. A typical homeowner faces an annual property tax bill of almost $9,000.

Some fragments of New Jersey (like Woodlynne or Lindenwold) have equalized rates that exceed 4%, but even in lower-tax locales, residents pay considerably more than in Delaware.

What This Means for Homebuyers & Homeowners

1. Affordability & Budgeting

Delaware’s low property tax environment translates directly to lower annual living costs, making it particularly attractive for retirees, budget-conscious families, and long-term residents.

2. Investment Security

With taxes remaining predictable and relatively low, homeowners in Delaware enjoy greater financial stability—especially in contrast to NJ or MD, where local levies and state-wide pressures can drive costs up.

3. Mobility Advantage

Buyers relocating from NJ, PA, or MD may experience instant cost savings—even properties with slightly higher sticker prices can be more affordable over time due to lower ongoing tax liabilities.

4. Smart Tax Planning

If you’re a tax-savvy owner in MD or PA, check to see if available local credits or rebates apply. And if you’re already in Delaware, make sure you’re taking advantage of exemptions like senior credits (e.g. Wilmington offers waivers up to $715 on property taxes for qualifying seniors).

5. Local Variations Matter

Even within states, tax rates vary by county and school district. For example, Sussex County’s 0.35% is a statewide standout—but New Castle’s 0.76% shows that ZIP code can significantly impact your rate of return.

Final Takeaway

Delaware stands out in the Mid-Atlantic region for its scarcity of property tax burden—offering homeowners considerably lower rates than neighboring states. Whether you’re comparing Delaware’s tidy 0.55% average to Pennsylvania’s 1.19%, Maryland’s 0.95%, or New Jersey’s top-tier 2.2%+, the savings are far from trivial.

For prospective buyers, that can make entering the Delaware real estate market an even more compelling long-term value proposition. Homeowners should stay vigilant on local exemptions and potential reassessments, but in 2025, Delaware remains one of the most tax-friendly states to own property in the region.