Retiring from NJ to Delaware: How to Save $15,000 a Year Without Changing Your Lifestyle

If you're living in an $800,000 home in places like Princeton, Cherry Hill, or even Middletown, New Jersey, you're most likely writing a property tax check for around $19,000 per year. Now, what if I told you that if you moved just 90 minutes south in coastal Delaware, that same check could drop to $2,400 per year or less. That is over $16,000 back in your pocket. Before we even talk about the fact that Delaware has no sales tax, today we are breaking down what I like to call the New Jersey exit strategy. And we're going to go over some 2026 updates that are going to put even more money back in your pocket. This is such a strong financial move for retirees in 2026. Now, I know that sounds like a huge claim. So let's put some numbers into what I just mentioned. Let's start with the biggest driver, property taxes. New Jersey has the highest property taxes in the US. The average effective rate is 2.25%. So on an $800,000 home, you're looking anywhere from $18,000 to $20,000 per year. Now imagine that you may own your home outright. You still have an $18,000 to $20,000 property tax bill, which if you break that down, it's like having another mortgage after your home is already paid off. Now let's compare that to Delaware. Delaware's property taxes have an effective rate of 0.47% as opposed to 2.25%. So that same home could be anywhere from roughly $2,500 to $3,500 per year. That is not a small difference. That is a massive shift in your monthly cost of living. Imagine having that same house that we just talked about. You own it outright and your property tax bill is anywhere from $2,500 to $3,500 if you lived in coastal Delaware. Now, if you're watching this and thinking, where would I even go in Delaware? I have no idea anything about Delaware. I don't know where I would want to live. I have made a special tool to help you figure that out. It is below in the description is all about your Delaware retirement path. And in two minutes, we can figure out what you're looking for. So like I just said, that is below in the description if you want to check it out. Okay. So why is there such a huge difference in property taxes when the states are basically right next to one another? In most cases, most people think that Delaware is just cheaper. It's not. New Jersey uses a lot of their property taxes to fund local services and Delaware is structured completely different. That's why when people move here, they often feel like they have just gotten rid of this financial burden that has just been sitting on their shoulders that they didn't even realize was sitting there. This is why I'm always saying in all of my videos, it's honestly just like a breath of fresh air. You don't have to stress about the cost of living like you do if you've lived in New Jersey or honestly, even on all of our other surrounding states, New York, Pennsylvania, Maryland, it is cheaper to live in Delaware than it is in our surrounding states. Now let's talk about what has changed for 2026, which I'm super, super excited for. Delaware doubled their senior citizen school tax credit. It went from $500 to a thousand dollars. Now there is a 10 year minimum residency requirement, which means that in order to apply for this, you do have to live here for 10 years before you can take advantage of this senior citizen tax credit. But if you move in 2026, you start that clock earlier than if you wait for 2027. I keep that in mind. And listen, if you are planning on moving here early in retirement, that is actually going to happen quicker than you expect it to. And then that $2,500 bill will go to $1,500, which is minimal compared to what you would pay if you were still in New Jersey. And then let's look at the retirement income. You can exclude up to $12,500. So for a married couple, that is $25,000 of your retirement income that you can exclude off of taxes. And for military retirees, that jumps to $25,000 automatically. So really, when you look at the whole picture, we have low property taxes, no sales tax. You can exclude income off of your retirement. Really, the monthly cost and the yearly cost, you benefit so much by retiring to Delaware. You can start to see how this becomes a real strategy. And if you are interested in the true cost of retiring to Delaware, I have a full guide full of real numbers, breaking down anything from closing costs to moving expenses to vehicle registration. And it is below in the description. So go ahead and click on that link and download that guide. It is totally free and it is to help you know all of the numbers so that there's no guessing game when you actually decide to retire to Delaware. Okay, so I know we've talked heavily about money, about saving that money and how the financial burden just gets lifted off of you. But let's talk about what that actually does for you and where those extra funds can go to. Let's talk about where that extra $15,000 to $16,000 where you can spend that. So that could cover your HOA fee, which means that if you live in a 55 plus community or one of the amazing communities in coastal Delaware that actually covers your lawn maintenance, you don't have to worry about any kind of maintenance outside for your lawn care, which once again, peace of mind, you just not have to worry about it. You could spend that money on dining out. We have so many mom and pop restaurants in coastal Delaware that are absolutely amazing. You'd also use that extra money to travel more, maybe go on cruises, go abroad, go to Mexico. If you think about it, an all-inclusive resort in Mexico for a couple with airfare could cost you less than five grand. And essentially that's $15,000 to $16,000 that you just saved could pay for that. Or maybe you're a golfer. We have plenty of golf communities and golf courses in coastal Delaware that are absolutely gorgeous that people love to golf on. And here's the best part. You're not downsizing. Like I said, that same $800,000 house is going to cost you way less than property taxes in Delaware. So I'm not even telling you that you have to downsize. It could be the same exact house, but listen, I don't want you to rush into this. If you are even just thinking possibly I would want to retire to Delaware, reach out. Let's have a conversation. Let's plan out what the next six to 12 months looks like. Let's plan out what the next three to six months looks like. Let's plan a visit for you to come take a look at new construction communities or resale communities. Let's see what's in your budget, where you would want to be, because there are so much that goes into this decision. It is not just about what is the HOA fee? What is the cost of the house? It's do you like this community? Is this where you want to be? Is this how you picture your life? Do you want amenities? Do you not want amenities? Do you want to be in Lewis? Do you want to be in Georgetown? There are so many decisions that go into making this move. So do not hesitate to reach out, even if you're just thinking, maybe I would want to retire to Delaware, but what does that look like? Let's talk it out. Let's have a conversation, have you come visit and let's just go look at all the communities and see what you actually like. And listen, if you're thinking about, I think I would want to be in coastal Delaware, but honestly, I'm not sure because let's be honest, Milton Millsboro and Milford all sound about the same, but they are totally different places. So if you are interested in comparing the different places, you're not really sure where you would want to be. I actually have a full guide comparing all of the coastal towns in Delaware. And that also is down below in the description. So go ahead and click that. Okay. So bottom line, this is not about just exiting New Jersey. I'm sure you have lived there your entire lives. I hear that very often, but you get to a point where you're like, I just cannot afford this anymore. And what does this look long-term? And then that's when you just start deciding where am I actually going to retire to? So if Delaware has been on the list, which I think it should, because the cost of living is so much cheaper than New Jersey, please reach out. Whether it be you schedule a call with me, send me an email, send me a text. My information is down below in the description. I hope that this video helped. If it did be sure to give me a thumbs up and be sure to subscribe to the channel. Like I said, if you are just starting out and you're not really sure what you're looking for in Delaware, there's a tool down below in the description to figure that out. Or if you're already in the process and you're like, I'm definitely going to retire to Delaware. The true cost of retiring to Delaware guide is down below in the description as well. And if you would just like to compare the coastal town, that also is in the description as well. I really hope this video helped. Once again, don't forget to subscribe and hit that like button. And I will see you on next week's video. Thank you so much for getting this far into the video. If you would like more Delaware retirement content, check out this video right here. And if you would love to tour Delaware communities with me, check out this playlist right here. And don't forget subscribe to my channel.