tax free shopping

No Sales Tax in Delaware: See How Much You Can Save in a Year

Looking to save money this year so that you can put more toward saving for retirement, taking more vacations, paying off student loans, or just living more comfortably for less money? Well then, you might want to consider buying a home in Delaware.

Delaware is one of the few states in the U.S. that allows you to make completely tax-free purchases on anything. While you might not pay much attention to the relatively small amount added to your total for each transaction, those dollars can quickly add up. Sales tax is especially burdensome when you’re making big purchases, such as a new car, a home, furniture, electronics, etc.

How much can you save without sales tax?

There are a lot of things to factor when determining exactly how much you’ll save, such as what the sales tax percentage is in your current state, what your normal spending budget is, and if you’re making any changes to your spending habits once arriving in Delaware. However, for quick comparison, we’ll break down the average consumption.

According to data collected by the Bureau of Labor Statistics (BLS), the average household made $78,635 before taxes and spent about $61,000 of that in various expenditures. Since not all of those purchases would be subject to sales tax in most states, let’s see the break down of how the average family spends their paycheck, along with the savings opportunities that eliminating sales tax can provide:

  • Eating out – $3,459
  • Apparel and Services – $1,866
  • Vehicle purchases – $3,975
  • Entertainment – $3,226
  • Personal care products and services – $768
  • Expenditures – $2,030

These goods and services, averaging a total of $15,324, are usually taxed in most states. With state sales tax rates wavering between 2.9% and 7.25%, this can mean consumers are spending an additional $444 to $1,111 each year just in sales tax. Imagine having that money to put toward a dream vacation or to pay off some debt.

For some people, that number may increase even more. If you live in a state that imposes local sales tax in addition to state sales tax, you may be looking at a combined sales tax rate as high as 9.53% for every single purchase. That would mean you’re spending nearly $1,500 a year in sales tax alone.

Add in other expenses that could be taxed in your state, such as gasoline ($2,109), groceries ($4,464), and education ($1,407), and you could be paying an annual sales tax as high as $2,220.

Ready to post the “For Sale” sign on your lawn yet?

Where to buy in Delaware

Saving on sales tax is just one of many reasons to consider buying a home in Delaware. Montchanin Builders is proud to offer affordable, luxurious new construction homes in New Castle County, Delaware that give you the space and amenities you need in a unique master-planned community setting. Customize your new home at our Design Center by selecting floor layout, cabinets, counters, flooring, and more.

Take advantage of competitive interest rates and homebuyer programs when you work with Cardinal Financial, our preferred lending partner. Call today to schedule a tour today!

Portrait Of Family Cycling Through Fall Woodland

Why Is Relocating to Delaware So Popular? Here’s 5 Reasons

Delaware is one of the true hidden gems in the U.S. If one phrase could sum up life in Delaware, it would be: “Small town vibe and friendliness with big city amenities.” There are so many reasons why people decide to relocate to Delaware. The fresh air, scenic views, and recreational opportunities attract the outdoor lovers. The fine dining and dynamic craft brewery scene attract the foodies. And the outstanding tax benefits and affordability of the state attract all those who are fiscally prudent. What’s not to love?

The beautiful scenery is just one reason why relocating to Delaware makes sense

Waterfront? Check. Fantastic beaches? Check. Nature trails, dog parks, and mountain biking trails? Check, check, and check! You name it, Delaware’s got it. There’s never a shortage of things to do when the best recreational opportunities are just a stone’s throw from home. Many people decide that moving to Delaware makes sense because they want to raise their children in a region that clearly values the outdoors.

Your inner foodie will love the fantastic dining options

Wilmington alone has an incredible diversity of dining choices. From fine dining in a romantic atmosphere to casual family eateries, Wilmington has it all. Another little known secret about Delaware is that you can find better Philly cheesesteaks here than in Philly itself. But if this sounds like sacrilege to you, you can just hop on the freeway and get to the City of Brotherly Love in about 40 minutes.

You can buy a lot of house for a lot less money

It’s no secret that real estate is far more affordable in Delaware than in much of the rest of the country. Not only is the property itself more affordable, but annual costs are far lower. In fact, Delaware has one of the lowest property taxes in the country. And once you buy a house in Delaware, you may be entitled to a federal income tax credit.

Major benefit of living in Delaware: Few taxes… period

Delaware is one of the best places to move to if you don’t enjoy forking over your hard-earned cash to Uncle Sam. Not only is the property tax one of the lowest, but so is the income tax. And if you decide to go on a shopping spree with all the money you don’t pay in taxes, you’re treated to another major perk: No sales tax!

Living in Delaware: Reviews of the great art scene

Delaware is brimming with great artistic talent. The art galleries in this state combine a love of American tradition with a healthy respect for new artistic exploration and emerging talents. From the Somerville Manning Gallery to the Schoonover Studios, the art gallery scene in this area is a feast for the eyes.

Moving to Delaware? Find your family’s perfect home!

If you’re thinking about moving to Delaware, choosing the right region to move to is only part of the equation. You’ll also need to choose the right neighborhood and the perfect home. Let Montchanin Builders make your home search easier. Visit one of our masterfully planned communities in Delaware, like the much sought-after Darley Green, The Overlook at Rockford Falls, or The Town of Whitehall. Tour our beautiful and functionally arranged homes, and learn about our competitive financing options. Call us today – 302.472.7212!

Additional resources for living in Delaware

  1. Movoto, 30 Things To Know About Delaware Before Moving There,
  2. Investopedia, Delaware Property Tax Guide,

Back to School Tax Savings in Delaware

tax free delaware shoppingFamilies across the country are taking a hit to the pocketbook with back to school shopping. For families in Delaware, though, the spending spree is a bit more enjoyable because there is no sales tax.

Delaware is home to most of the country’s large corporations, netting it enough in corporate income tax that the state can give shoppers a free pass on sales tax, which is especially helpful for school supplies and holiday sprees.

No sales tax in Delaware

Delaware is one of only five states to offer shopping without sales tax. The savings is so attractive that Delaware’s retail outlets and malls attract shoppers from New Jersey, Pennsylvania, and beyond. Not surprising, the influx of out-of-state shoppers is greatest when people are planning for major shopping events like holiday gifts or supplies for the new school year. Delaware residents, however, reap the benefits year-round on even the smallest shopping or dining purchases, saving as much as 11.5% when compared to the state sales tax plus local surcharge in some other states.

Where non-Delaware shoppers are at a larger disadvantage is vehicle purchases. For cars, SUVs, and other passenger vehicles, sales taxes are based on the purchaser’s state of residence; crossing the border will not lead to a savings but moving across the border will.

Sales tax is one of many tax benefits in DE

The tax attractions in Delaware extend beyond shopping and dining. Delaware residents also benefit from:

  • Low income tax rates
  • No tax on social security income
  • No tax on the first $12,500 of retirement income
  • Some of the nation’s lowest property taxes
  • State tax structure that allows residents to create additional tax benefits

There is no doubt that the tax structure in the First State is a major perk that works to the advantage of its residents.

Other perks of Delaware living

Of course, taxes are not the only benefit to living in Delaware. Some of the other features that residents love include:

  • Beaches – the eastern part of Sussex County along the Atlantic Ocean is lined with beaches featuring excellent water quality
  • Recreation – Along with a dozen major beaches, Delaware offers tons of  utdoor recreation whether you love hiking, fishing, or enjoying a round of golf
  • Attractive cost of living – Beach living typically comes with a high cost of living but the cost of living in Delaware is far below that of other New England coastal communities
  • Accessibility – Delaware residents a just a short drive from Washington DC, Baltimore and Philadelphia

To take advantage of all that Delaware has to offer, consider a new home by Montchanin Builders. The walkable communities like Rockford Falls, The Cedars, Darley Green and Shipley Road Estates offer luxury living along with the best that Delaware has to offer.

To explore our expertly-crafted move-in ready homes, contact our sales representative today for a tour.

Delaware: A Hidden Gem for Retirees

retired Delaware coupleForget Florida and Belize. The best place to spend your carefree retirement years just might be in Delaware. Long known as a “hidden gem” for retirees, Delaware offers incredible tax breaks for seniors, along with the best in leisurely living.

If you’re looking for a place to call home, Montchanin Builders welcomes you to our masterfully designed communities in the Wilmington, DE area. Need a little more convincing? Take a look at the following financial incentives.

Financial freedom in retirement

You worked hard all of your life to save money for retirement. Now that retirement is imminent, it’s more important than ever to get the most bang for your buck. Financial experts have called Delaware one of the most tax-friendly states for retirees. If you’re over the age of 60 and are entitled to a pension, you can exclude $12,500 from your state income taxes. Under the age of 60? No problem; you can still exclude $2,000 from your pension. Perhaps even more impressive is the state’s policy on Social Security income. When you move to Delaware, all of your Social Security income will be excluded from state income taxes. This is particularly attractive for the many retirees who rely heavily on Social Security income to pay their living expenses.

But the financial incentives don’t end there. If you’re 65 or older, Delaware will let you claim a tax credit for half of your school property taxes. The maximum is $500. Many retirees enjoy holding down a part-time job to get out of the house now and then and allow for socialization. If this describes you, you can look forward to a moderate income tax rate with a low of 2.2 percent. Plus, you’ll get an additional tax break just for being over the age of 60.

Enjoy shopping? You can do so without paying any state sales tax anywhere within Delaware. Concerned about the legacy you’ll leave behind? Living out your golden years in Delaware will likely save your beneficiaries big bucks on estate taxes. Executors do not even have to file an estate tax return in Delaware if the estate is less than $5.25 million.

Move-in ready homes by Montchanin

Another major benefit of choosing Delaware for your retirement is the affordability of real property. Montchanin Builders has long been known for building high-quality, luxurious homes at competitive price points. Our beautiful homes in Darley Green, The Cedars, Shipley Road, and the Town of Whitehall are move-in ready — with the option of custom upgrades.

Enjoy the true spirit of community with your new neighbors. Tree-lined streets and immaculate landscaping go hand-in-hand with community gathering areas and nature trails. Plus, Montchanin communities are convenient to shops and businesses, cultural enrichment opportunities, and so much more. To learn more about our new homes in Delaware, call us today at 302.655.2600.

Philadelphia Named Top Destination by Lonely Planet

liberty bell

For the second year in a row, Philadelphia has been named the “Best in the U.S.” by the largest travel book publisher, Lonely Planet.

The coveted spot is on a top 10 list of the “unexpectedly exciting places to see.” The news comes as no surprise to residents of Philly, Wilmington, DE, and other nearby areas. The City of Brotherly Love is on the fast track toward ditching its status of being the East Coast’s “Best Kept Secret” and instead becoming the widely acclaimed “It” destination for millennials.

Kudos abound for Philly

Lonely Planet’s list certainly isn’t the only claim to fame Philly has. The city has been declared to be in the top five of the most walkable cities in the U.S. The New York Times’ list of 52 Places to Go In 2015 puts Philly at number three, beating out countless other contenders, both domestic and international. Philly has also been declared the first and only World Heritage City in the U.S. With this designation, Philly has been elevated to the stature of the likes of Paris, Cairo, and Jerusalem.

And the kudos don’t stop there. Those who already live in the area know all too well the necessity of regular exercise. Without it, the scores of gourmet restaurants with delicious cheesesteaks “wit” or “wit out” are bound to expand one’s waistline a tad bit. (Though Philly’s incredible vegetarian bistros could give the cheesesteaks a run for their money.) Philly’s foodies also love the city’s famed Tastycakes, “water ice,” and square pizza with upside-down toppings. In fact, in 2015, Philly made the Washington Post’s “10 Best Food Cities in America.”

Philly has also been dubbed among the “9 Best Cities for Biking to Work” by Time magazine. However, it should be noted that Philly has a superb public transportation system, which makes it easy for residents of Wilmington and beyond to navigate the city during a day trip. (Speaking of day trips, did you know that Philly does not impose sales tax on clothes or shoes? Or food, for that matter.)

And the accolades don’t stop there. A financial services company, JLL, ranked Philadelphia among the top destinations of choice for millennials. As the folks at Lonely Planet put it, “Philly’s on a roll. NYC’s more neighborly neighbor is experiencing a transformation to its urban core.” Lonely Planet went on to note Philly’s distinction as being a stopping point for Pope Francis and serving as the host of the Democratic National Convention in July.

Darley Green: Your gateway to living life well

Homeowners in Darley Green are already enjoying the good life, with all the benefits of a close-knit, friendly community just a quick ride away from the sights and sounds of Philly and downtown Wilmington, DE.

Montchanin Builders offers move-in ready condos and townhomes in the premier Darley Green community for those looking for luxury at an affordable price. If the spacious floor plans, masterpiece kitchens, and prime location just 20 minutes away from happening Philadelphia aren’t enough to entice you, call our office at 302-655-2600 and ask us about the $10,000 move-in incentive.

Tax-Free Shopping Getaway to Wilmington

mom and daughter shoppingImagine a girls or family getaway filled with tons of tax-free shopping at your favorite stores. It’s time to turn your dreams into reality by paying a visit to the greater Wilmington area, where ZERO sales tax equals tremendous savings.

Buy much more for less when you shop in Delaware, home to high-end boutiques, trendy retail outlets, sprawling farmers markets and massive shopping malls, just minutes from downtown Wilmington.

Black Friday is just around the corner – the perfect time to pick up those big ticket items you’ve been pining for all year. Here’s a guide to your weekend Wilmington, DE getaway for some serious retail therapy.

Weekend getaway of tax-free shopping in Wilmington

  • Christiana Mall – The Apple store in the Christiana Mall sells more iPhones than any other outlet, and for good reason. If you’ve been hankering for the latest iPhone edition and want to save some cash on taxes, head to the state’s largest mall, which is conveniently situated halfway between Newark and Wilmington, DE. The Christiana Mall is ideally located for a weekend shopping trip, whether you live in New Jersey, Maryland, New York or Pennsylvania. Browse hotspots like Anthropologie, Brookstone, J. Crew, Kiehls, Pottery Barn, Macy’s, LUSH, Swarovski, Williams Sonoma and Urban Outfitters and take advantage of seasonal sales.
  • Tanger Outlets Rehoboth Beach – Featuring more than 150 brand-name outlets, this is the place to go for some amazing Black Friday deals. Check their website for extra savings coupons before heading over to 36470 Seaside Outlet Drive. Discover super deep discounts on designers you love like Tommy Hilfiger, BCBG, Guess and Nine West or find great deals on children’s wear at OshKosh B’Gosh.
  • Artisanal spirits & wines – Explore charming family-operated vineyards for tastings and tax-free purchases along the Delaware Beer, Wine & Spirits Trail that features four local wineries and a handful of brewpubs and artisanal distilleries. Boasting gorgeous countryside and rustic charm, Pizzadili Vineyard and Winery and Harvest Ridge are sublime settings for a wine aficionado’s weekend retreat.
  • Museum Shopping – The region’s numerous museums are an excellent bet for one-of-kind gifts. The Winterthur Museum store is brimming with unique coffee table books, garden accessories and home decor items, and the Delaware Art Museum features a first-rate store for quirky finds including vases, jewelry, retro cards, artsy posters and other treasures.

Enjoy NO sales tax all-year long

A weekend shopping escape to Delaware gives you the opportunity to experience the fine dining, beautiful scenery, family-centric attractions and vibrant culture of the state – just some of the compelling reasons to call Wilmington, DE home.

The master-planned community of Darley Green is a collection of luxurious Delaware condos and townhomes in the Claymont Renaissance District – less than five minutes from Wilmington. Whether you’re looking for a 2-bedroom or a 3-bedroom move-in ready home, rest assured you’ll find a floorplan, features and amenities that perfectly suit your needs and desires.

To learn more about financial assistance for first-time homebuyers, or to schedule a tour, please call 302.472.7200 to speak with a Montchanin Builders sales representative.