Cost of Living in Delaware in 2025: From Grocery to Taxes

Delaware’s picturesque beaches, scenic landscapes, and charming small towns offer a unique blend of natural beauty and historic allure, making it an inviting destination. But before you pack your bags to live, study, or work here, ensure your budget can keep up with the cost of living in Delaware.

Average Cost of Living in Delaware

Data from World Population Review indicates that the Delaware cost of living index is 100.8, slightly higher than the national average. However, this number alone doesn’t tell the full story. 

Delaware Personal Income Tax

Delaware uses a graduated income tax system with rates ranging from 2.2% to 6.60%, with the highest rate applying to incomes over $60,000. 

Social Security and Railroad Retirement benefits are exempt from state income taxes. Additionally, residents aged 60 and older can exclude up to $12,500 of pension and eligible retirement income from their taxable income, which helps reduce the cost of living in Delaware for seniors.

Sales and Gross Receipts Taxes

Unlike many states, Delaware does not impose a state or local sales tax, allowing residents to save on everyday purchases. Instead, the state levies a gross receipts tax, charged to the seller of goods or services rather than the consumer. 

Property Tax

Delaware’s effective property tax rate is approximately 0.50%, making it one of the lowest in the country. This favorable rate results in a median property tax bill of around $1,570, substantially lower than the national median of $3,500. Such affordability makes Delaware an attractive option for homebuyers.

Housing Expenses

As you evaluate the cost of living in Delaware, you might wonder how much it will cost to buy a home. 

The median home price in the state is around $417,300, meaning you’ll need $41,730 for a 10% down payment. You should also budget for closing costs, home maintenance, repairs, and homeowners association fees.

Renting may be a more practical alternative if these homeownership costs feel burdensome. However, in Delaware, just 41 rental units are accessible and affordable for every 100 households with extremely low income.

The average Fair Market Rent (FMR) for a two-bedroom home is $1,594 per month. To cover both rent and utility costs, a full-time worker must earn an hourly housing wage of $30.65 and have a household income of $63,742 annually. Yet, an extremely low-income household of four typically earns just about $31,920 per year, falling short of the average cost of living in Delaware.

Grocery Prices

Delaware households spend an average of $246.21 per week on groceries. Prices for these goods are affected by local economic conditions, global commodity markets, and supply chain disruptions, causing fluctuations that influence the overall Delaware cost of living.

According to the U.S. Bureau of Labor Statistics (BLS), the food price index in the greater Philadelphia region, which includes New Castle County and Wilmington, Delaware’s largest city, rose by 2.6% over the year ending in April 2025.

In the two months leading up to April, prices for other food at home dropped by 2.6%, while fruits and vegetables declined by 2.0%. Conversely, the index for meats, poultry, fish, and eggs increased 8.8% over the year.

Electricity, Water, and Gas Prices in Delaware

The average electricity rate in Delaware is 16.53 cents per kilowatt-hour (kWh), slightly above the national average of 16.13 cents per kWh. This results in an average residential bill of about $152 per month, though costs can vary depending on the provider, plan, location, and season. 

The Delaware cost of living also includes water and sewer charges, which typically add $40 to $60 per month, depending on household size and usage patterns. Meanwhile, the state’s current residential natural gas price is around $12.71 per thousand cubic feet (Mcf).

Medical and Insurance Expenses

Health is one of the most important things people should spend their money on, yet it remains a major concern for Delawareans. 

The state ranks among the top 10 most expensive states for healthcare. A study revealed that Delaware’s per-person healthcare spending is $12,899. Several factors contribute to these high costs, including the state’s shortage of primary-care physicians and its large aging population. 

In addition to healthcare costs, Delaware residents face financial challenges related to insurance premiums. The average cost of car insurance in the state is $1,081 per year for the minimum required coverage. This rises to $2,953 for those opting for full coverage. 

On a more positive note, homeowners’ insurance in Delaware is relatively affordable compared to other states. Residents pay an average of $99 per month for homeowners insurance, which applies to policies with a coverage limit of $300,000 and a $500 deductible.

Education Costs

College costs in Delaware are notably higher than the national average for public institutions, with 4-year public colleges being 18.02% more expensive. However, private university costs are 53.72% lower than the national average.

In-state students at a 4-year public college in Delaware pay around $26,424 annually, which includes $11,922 for tuition and fees, $8,689 for room, and $5,812 for board. In contrast, the yearly cost at a 4-year private college is about $22,978. These education expenses significantly influence the cost of living in Delaware.

Fuel and Public Transportation Costs

The average cost of living in Delaware is also shaped by transportation and fuel expenses. In April 2025, the national average retail price for a gallon of regular gasoline was $3.133, while diesel averaged $3.514 per gallon.

In comparison, Delaware’s average fuel prices were $3.017 per gallon for regular gasoline and $3.602 for diesel. However, residents in southern areas like Sussex County may encounter higher fuel costs due to fewer service stations and increased transportation demand in rural regions.

Public transportation is also a critical component of Delaware cost of living. A standard one-way fare on Delaware Authority for Regional Transit (DART) First State buses is typically $2.00. Reduced fares are available for students, seniors, and individuals with disabilities, with options for daily and monthly passes. 

Additional Expenses

It’s essential to consider other aspects of Delaware cost of living, including expenses for leisure and entertainment. A survey by RSS.com revealed that while the national average annual spending on entertainment is $8,258, Delawareans spend approximately $10,035.

Notably, a significant portion of this expenditure goes toward in-person entertainment, such as live shows, social outings, and recreational activities, with an average annual cost of $4,440.

What Are the Cheapest Cities to Live in Delaware?

Now that you’ve discovered the elements that drive the cost of living in Delaware, let’s examine the top places where affordability and quality of life come together perfectly.

Wilmington

Wilmington helps lower the average cost of living in Delaware with its affordable utility bills. The average cost of utilities in the city, including phone and electricity, is 2.2% lower than the national average. 

Dover

As Delaware’s capital and second-largest city, Dover gives you the chance to earn extra money due to its proximity to major cities and a growing job market. 

It’s also relatively affordable to live in Dover, with a median home value of $349,900, which is lower than in many other areas. As this reduces the cost of living in Delaware, you can save on housing costs while taking advantage of diverse job and business opportunities.

Delaware City

The cost of living in Delaware City is relatively low compared to other areas in Delaware and the U.S. The median annual property tax bill in Delaware City is $1,006, which is $1,394 less than the national median of $2,400. These lower energy and property tax costs contribute to the average cost of living in Delaware City being more affordable for residents.

FAQs

The following straightforward answers to some commonly asked questions about the average cost of living in Delaware can empower you to make smarter choices:

Is It Expensive to Live in Delaware?

Living in Delaware is relatively expensive compared to states with a lower cost of living. However, it is more affordable than places like Hawaii and California, where the cost of living is higher.

How Much Money Do You Need to Live Comfortably in Delaware?

According to CNBC, living comfortably alone in Delaware requires an annual income of $94,141 to cover housing, groceries, transportation, travel, and entertainment. This amount exceeds the U.S. median income for single, full-time workers with a bachelor’s degree, which is approximately $86,970.

What Are the Pros and Cons of Living in Delaware?

The lack of state sales tax reduces the cost of living in Delaware. Its location near major East Coast cities like New York and Washington, D.C., provides urban access while maintaining a relaxed atmosphere. Moreover, Delaware’s scenic coastlines, historic charm, and strong community add to its appeal. However, some coastal and rural areas have a higher cost of living, unpredictable weather, hurricane risks, limited transportation, and fewer job opportunities.