---
title: "Pennsylvania vs Delaware Taxes: Comparison"
description: "PA vs DE tax comparison 2026. Delaware has no sales tax. Compare income tax, property tax, and total tax burden for these neighboring states."
canonical_url: "https://www.themoneypocket.com/articles/pennsylvania-vs-delaware-taxes-2026"
last_updated: "2026-05-01T16:53:21.497Z"
---

## Pennsylvania vs Delaware Taxes 2026: Complete Comparison

Pennsylvania and Delaware are neighbors with surprisingly different tax approaches. **Delaware has no sales tax and is business-friendly ("Delaware corporation" anyone?). Pennsylvania has a flat income tax and higher property taxes.**

## Quick Comparison

<table>
<thead>
  <tr>
    <th>
      Tax Category
    </th>
    
    <th>
      Pennsylvania
    </th>
    
    <th>
      Delaware
    </th>
    
    <th>
      Winner
    </th>
  </tr>
</thead>

<tbody>
  <tr>
    <td>
      <strong>
        Income Tax
      </strong>
    </td>
    
    <td>
      3.07% flat
    </td>
    
    <td>
      2.2% - 6.6%
    </td>
    
    <td>
      ⭐ <strong>
        PA
      </strong>
      
       (for high earners)
    </td>
  </tr>
  
  <tr>
    <td>
      <strong>
        Sales Tax
      </strong>
    </td>
    
    <td>
      6%
    </td>
    
    <td>
      <strong>
        0%
      </strong>
    </td>
    
    <td>
      ⭐ <strong>
        Delaware
      </strong>
    </td>
  </tr>
  
  <tr>
    <td>
      <strong>
        Property Tax
      </strong>
    </td>
    
    <td>
      1.50%
    </td>
    
    <td>
      0.57%
    </td>
    
    <td>
      ⭐ <strong>
        Delaware
      </strong>
    </td>
  </tr>
  
  <tr>
    <td>
      <strong>
        Total Tax Burden
      </strong>
    </td>
    
    <td>
      10.2%
    </td>
    
    <td>
      6.4% (#47 lowest!)
    </td>
    
    <td>
      ⭐ <strong>
        Delaware
      </strong>
    </td>
  </tr>
</tbody>
</table>

**Bottom Line:** Delaware wins overall with dramatically lower total tax burden, no sales tax, and low property tax.

<federal-tax-bracket-calculator>



</federal-tax-bracket-calculator>

## Income Tax

### Pennsylvania: 3.07% Flat

Simple flat tax on all income:

- $75K = **$2,303**
- $100K = **$3,070**
- $200K = **$6,140**

### Delaware: 2.2% - 6.6%

Progressive brackets:

- 2.2% up to $5K
- 3.9% on $5K-$10K
- 4.8% on $10K-$20K
- 5.2% on $20K-$25K
- 5.55% on $25K-$60K
- **6.6% on $60K+**

**Examples:**

- $75K = **$4,200**
- $100K = **$5,850**
- $200K = **$12,450**

### Income Tax Winner

**PA wins** for income above ~$80K<br />

**DE wins** for income below ~$80K

<standard-deduction-calculator>



</standard-deduction-calculator>

## Sales Tax: DE Dominates

### Pennsylvania: 6%

Most goods taxed at 6%. Exceptions:

- Groceries: exempt
- Clothing: exempt
- Prescription drugs: exempt

### Delaware: 0%

**NO SALES TAX**

**Annual Impact ($40K spending):**

- PA: $2,400 sales tax
- DE: $0
- **DE saves $2,400/year**

**Many Marylanders and Pennsylvanians shop in Delaware to avoid sales tax!**

## Property Tax: DE Wins Big

### Pennsylvania

**Average:** 1.50%

- $400K home = **$6,000/year**

### Delaware

**Average:** 0.57%

- $400K home = **$2,280/year**

**DE saves $3,720/year** on property tax!

<tax-withholding-calculator>



</tax-withholding-calculator>

## Real-World Scenarios

### Scenario 1: Middle-Income Family

**Income:** $120,000<br />

**$450K home**

**Pennsylvania:**

- Income: $3,684
- Sales: $2,400
- Property: $6,750
- **Total: $12,834**

**Delaware:**

- Income: $7,170
- Sales: $0
- Property: $2,565
- **Total: $9,735**

**DE saves: $3,099/year** 🎉

### Scenario 2: High Earner

**Income:** $250,000<br />

**$600K home**

**Pennsylvania:**

- Income: $7,675
- Sales: $3,000
- Property: $9,000
- **Total: $19,675**

**Delaware:**

- Income: $16,050
- Sales: $0
- Property: $3,420
- **Total: $19,470**

**DE saves: $205/year** (close race!)

<child-tax-credit-calculator>



</child-tax-credit-calculator>

## Which State Wins?

### Delaware Better For:

✅ **Most households** (lower total burden)<br />


✅ **Homeowners** (much lower property tax)<br />


✅ **Big spenders** (no sales tax!)<br />


✅ **Beach lovers** (Rehoboth, Bethany)<br />


✅ **Business owners** (DE corporation benefits)<br />


✅ **Lower earners**

### Pennsylvania Better For:

✅ **Very high earners** ($200K+) without homes<br />


✅ **Urban lifestyle seekers** (Philadelphia)<br />


✅ **Sports fans** (Eagles, Steelers, etc.)<br />


✅ **Those wanting 4 distinct seasons**

## Special Considerations

**Delaware Beaches:**
Tax-free shopping + beach = summer tourism boom

**"Delaware Loophole":**
No sales tax attracts shoppers from MD, PA, NJ

**Philadelphia vs Wilmington:**
Philly is bigger, more urban. Wilmington is smaller but growing.

<qbi-deduction-calculator>



</qbi-deduction-calculator>

## FAQ

**Q: Why does Delaware have such low taxes?**<br />


Corporate franchise fees! Delaware incorporates 60%+ of Fortune 500 companies. This revenue allows lower resident taxes.

**Q: Can I shop in DE to avoid sales tax?**<br />


Yes! Perfectly legal. Many do.

**Q: Which has better schools?**<br />


PA has strong suburban school districts. DE varies more. Research specific districts.

**Q: Cost of living?**<br />


Similar overall. DE beach areas expensive. PA Pittsburgh/smaller cities cheaper.

## Conclusion

**For most households, Delaware offers lower total tax burden**—typically $2,000-5,000/year savings, mainly from no sales tax and low property tax.

**High earners ($200K+) find the states roughly equal**, with PA's lower income tax offsetting DE's other advantages.

### Calculate Your Savings:

<federal-tax-bracket-calculator>



</federal-tax-bracket-calculator>

<eitc-calculator>



</eitc-calculator>

<amt-calculator>



</amt-calculator>

---

**Last Updated:** Jan 2, 2026