Delaware State Chamber Of Commerce Has One Of Lowest Tax Burdens In United States

Wilmington DE

23 May, 2022

5:05 AM

Description

Press release from Delaware State Chamber of Commerce: May 19, 2022 According to WalletHub's recently released 2022 Tax Burden by State report, Delaware has the distinctive advantage of having the third-lowest tax burden in the United States. Delaware also has a lower cost of living than most of its East Coast neighbors, a median household income 6.3% higher than the national median and high-wage job opportunities in the manufacturing and advanced manufacturing industries. With a total tax burden of 6.22%, Delaware ranks near the top for tax favorability — only Alaska and Tennessee have lower tax burdens. The listing is formulated based on the three components of state tax burden – property taxes, individual income taxes and sales and excise taxes — as a share of personal income. Delaware is one of just five states in the nation – and the only state in the Mid-Atlantic region – with no sales tax. Unlike tax rates, which vary widely based on an individual's circumstances, tax burden measures the proportion of total personal income that residents pay toward state and local taxes. In addition to low total tax burden, Delaware is among the states with the lowest property tax burdens with a percentage of 1.77%. The Cost of Living Index Calculator shows how far salary goes for housing, utilities and more in Delaware. Delaware also ranks among the top three states nationwide for favorable business tax. The comprehensive report Location Matters, sponsored by KPMG and The Tax Foundation, assesses the business tax burden in two categories of cities — major and mid-sized — throughout all 50 states, accounting for the wide range of tax impacts faced by businesses, such as property tax, income tax, sales tax and others. "Delaware's favorable position in national tax burden rankings underscores our commitment to making sure that our tax structure is attractive to businesses and individuals and supports our growing economy," said Governor John Carney. "That, along with Delaware's low cost of living, plus top-notch healthcare, education and recreation, add up to one great place to live." This press release was produced by Delaware State Chamber of Commerce. The views expressed here are the author's own.