The First State ranks as the most tax-friendly state in the country according to a new index.
Put together by Kiplinger, a DC-based business forecaster, Delaware rose to the top of the organizations first state-by-state Guide to Taxes study.
Delaware also ranks 6th out of the tax-friendliest states in their Retiree Tax Map.
Sandra Block edited the report, which weighs a state’s income tax, property taxes and gas taxes among others to determine their ranking.
Block says Delaware not only stood out because of its relatively low rates, but because of its location.
“There’s sort of a regional pattern in both of our tax maps. Taxes tend to be lower in the south and higher in the north, higher on the East Coast. But Delaware kind of stands out," said Block. "It is sort of an East Coast state, close to a lot of big metro areas. But comparatively speaking, a much lower tax state.”
But Block adds that while considering various state taxes before relocating to a new place is important, she says people need to look at other factors before making a final decision.
“The other thing that we really stress, particularly with states that make our unfriendly list, is if you moved to a low-tax state that has bad schools you may not think that’s much of a deal because if you had to send your kids to private schools, any savings you would earn would probably be wiped out.”
The report did not consider business or corporate taxes in making its decision. Delaware recently ranked as the state with the 13th most business friendly climate by the Tax Foundation and 20th by Forbes.