Cost of Living in Delaware

(Last Updated – September 3,2025)

Although it’s the second smallest state by land mass, Delaware has a lot to offer, from its white sand beaches to small historic cities to pristine state parks. Plus, it’s one of only five states that doesn’t charge sales tax on purchases, which could lead to big savings over time. Although Delaware isn’t the most affordable place to live, it’s not the most expensive, either — the First State falls near the middle when it comes to cost of living. From housing to groceries to weekend fun, here’s a close look at how much it costs to live in Delaware.

What’s the Average Cost of Living in Delaware?

Average cost of living in Delaware: $57,672 per year

Delaware doesn’t top the list of best affordable places in the U.S., but it’s not at the bottom, either. Instead, Delaware falls near the middle when it comes to cost of living, placing 35th among all U.S. states on the Missouri Economic Research and Information Center’s (MERIC’s) 2025 First Quarter Annual Average Cost of Living Index.

Delaware’s cost of living index number is 103.5, meaning it’s only slightly more expensive than the baseline number of 100. Utilities are more affordable in Delaware than the national average, while housing and health care costs are a bit pricier.

According to data from the Bureau of Economic Analysis, the average personal consumption expenditures per person add up to $57,672. Here’s how these personal expenses break down by major category:

Category	Average Annual Per-Capita Cost in Delaware
Housing and Utilities	$10,311
Health Care	$11,091
Food and Beverages (nonrestaurant)	$4,237
Gas and Energy Goods	$1,696
All Other Personal Expenditures	$30,337

Housing Costs in Delaware

Median monthly housing costs in Delaware: $1,782 for mortgage, $1,182 – $1,811 in rent

Delaware has 448,735 housing units, 73.6% of which are owner-occupied. The average home value in Delaware is $404,612, according to Zillow, which is higher than the national average of $368,581, but low enough to be appealing if you’re buying your first home. Renters have a median gross rent of $1,358 per month.

Here’s a closer look at how much housing costs in Delaware:

•  Median monthly mortgage cost: $1,782

•  Median studio rent: $1,223

•  Median one-bedroom rent: $1,182

•  Median two-bedroom rent: $1,340

•  Median three-bedroom rent: $1,548

•  Median four-bedroom rent: $1,811

•  Median five-bedroom or more rent: $1,438

•  Median gross rent: $1,358

Your costs may be higher or lower depending on where you live in Delaware. If you’re looking to qualify as a first-time homebuyer, you may be interested in these average home values in cities across the state.

Delaware City	Average Home Value
Harrington	$271,582
Bowers	$318,331
Milford	$348,164
Viola	$343,538
Frederica	$370,841
Houston	$383,698
Felton	$386,731
Magnolia	$417,747

Utility Costs in Delaware

Average Utility Costs in Delaware: $420.04 per month

Along with the costs of your home loan or rent, you’ll also need to factor in utility costs. Here’s how much the typical Delaware resident is paying each month.

Utility	Average Delaware Bill
Electricity	$138.04
Natural Gas	$80
Cable & Internet	$134
Water	$68

Food & Beverage

Average food and beverage costs in Delaware: $353 per month

Delaware residents are paying an average of $4,237 per year on food and drinks, or about $353 per month. This is the average monthly expense for one person. If you’re a family of four, you may have a monthly grocery bill of $1,412.

Delaware’s grocery store cost of living index is 100.1, just barely higher than the baseline of 100. Here’s how grocery costs break down on a more local level.

Delaware City or County	Grocery Items Index
Dover	100.3
Sussex County	101.6
Wilmington	105.8

Transportation

Average transportation costs in Delaware: $10,249 – $19,070 per year

If you live in Delaware, you’ll probably need a car to get around. There are some public transit options, though, like the DART First State buses and SEPTA commuter rail. Amtrak trains are also an option if you’re going long distance.

Here’s what you can expect to pay in transportation costs each year, depending on the size of your family.

Family Makeup	Average Annual Transportation Cost
One adult, no children	$10,249
Two working adults, no children	$11,860
Two working adults, three children	$19,070

Health Care in Delaware

Average health care costs in Delaware: $11,091 per person, per year

Health care costs in Delaware average $11,091 per person annually, according to the Bureau of Economic Analysis Personal Consumption Expenditures report. This is higher than the average annual cost across the U.S., which totals $9,130. Your own costs will of course be higher or lower depending on your medical needs, health insurance plan, and other factors.

Child Care

Average Child Care Costs in Delaware: $892 to $1,403 per child, per month

Child care can be a major expense wherever you live, and Delaware is no exception. According to CostofChildCare.org, child care costs can range from $892 to $1,403 per month for one child, depending on the type of child care. Here’s how the costs break down.

Type of Child Care	Average Cost Per Month, Per Child in Delaware
Infant Classroom	$1,403
Toddler Classroom	$977
Preschooler Classroom	$892
Home-Based Family Child Care	$1,149

Taxes

State income taxes in Delaware: 2.2% – 6.6%

Delaware uses a graduated income tax system, meaning tax rates increase on higher incomes. The lowest state income tax rate is 2.2%, while the highest is 6.6%. This is significantly lower than the national average income tax rate of 14.5%, according to the most recent data from the Tax Foundation.

Delaware also doesn’t charge a sales tax, nor does it levy an estate tax or inheritance tax. Homeowners can expect to pay a 0.48% tax on owner-occupied properties. According to the Tax Foundation’s 2025 State Tax Competitiveness Index, Delaware’s tax system ranks 18th among all 50 states.

Miscellaneous Costs

Along with budgeting for groceries and rent, make sure to set aside money to have fun in the First State. If you’re up for an amusement park, Rehoboth Funland has classic rides and games by the water. You can pick up an unlimited ride wristband for you and your family for $26 (valid from 1:00 pm to 4:30 pm), or opt for tickets that range from $0.75 for a single ticket to $55 for 100 tickets.

If the ocean is calling to you, check out sailing lessons at the Rehoboth Bay Sailing Association. Members can sign up for a two-hour session for $140, while nonmembers pay $250. If those prices are a bit steep, head to one of Delaware’s scenic state parks. For an entrance fee of only $4 to $10, you can spend the day hiking and picnicking inland or by the sea.

For those looking to dive into culture, the Winterthur Museum, Garden and Library offers American art and more than 60 acres of gardens. Tickets are $30 for adults, $28 for seniors and students, $9 for kids, and free for babies under two.

For the most budget-friendly option, head to one of Delaware’s free beaches. It’s free to visit Rehoboth Beach or stroll along the Rehoboth Beach Boardwalk, which is lined with shops and restaurants. Plus, the Rehoboth Beach Bandstand hosts free concerts in the summer.

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

The amount of money you’ll need to live comfortably in Delaware largely depends on your lifestyle, how many people are in your family, and other factors. According to U.S. News & World Report, Delaware ranks 34th among the 50 states for cost of living in the U.S. and 33 for housing affordability.

MERIC gives Delaware a cost of living index of 103.5, just slightly higher than the baseline of 100. That means living expenses are fairly close to the national average. Housing costs can also vary depending on where you live in Delaware. Overall, the average cost of living in Delaware is moderate, but you may appreciate the lack of sales tax when you shop.

What City Has the Lowest Cost of Living in Delaware?

Dover has one of the lowest costs of living in the state of Delaware, with a cost of living index of 95.9. Its housing index is lower than average at 85, while utilities have an index of 96.3. According to Zillow, the average home value in Dover is $339,753.

Helpful Resources for Future Delaware Residents