Delaware vs Texas
Property‑Tax Comparison: Delaware vs. Texas
Overview
Both Delaware and Texas levy property taxes that fund local services such as schools, public safety, and infrastructure. According to the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates), Delaware’s effective property‑tax rate is considerably lower than Texas’s. The difference in rates translates into substantially different annual tax bills for comparable home values.
Side‑by‑Side Key Metrics
| Metric (2023 ACS) | Delaware | Texas |
|---|---|---|
| Effective property‑tax rate | 0.53 % | 1.58 % |
| Median home value | $326,800 | $260,400 |
| Median annual property tax | $1,731 | $4,111 |
| Property tax on a $250,000 home | $1,324 | $3,947 |
| Property tax on a $500,000 home | $2,649 | $7,893 |
| Median household income | $82,855 | $76,292 |
Sources: Delaware property tax and Texas property tax; data drawn from the U.S. Census Bureau’s 2023 American Community Survey (5‑year estimates).
Which State “Wins” on Property Taxes?
Winner (lower tax burden): Delaware
- Rate advantage: Delaware’s effective property‑tax rate of 0.53 % is 1.05 percentage points lower than Texas’s 1.58 %. This represents a 66.5 % lower rate.
- Dollar impact: For a home valued at $250,000, the annual tax in Delaware is $1,324 versus $3,947 in Texas – a difference of $2,623. For a $500,000 home, the gap widens to $5,244 ($2,649 vs. $7,893).
The lower rate and resulting lower annual tax bills make Delaware the more favorable jurisdiction for property‑tax purposes based on the data provided.
Who Is This Comparison Most Relevant For?
| Audience | Relevance of the Comparison |
|---|---|
| Current or prospective homeowners | Understanding the ongoing cost of owning a home in each state helps assess affordability beyond the purchase price. |
| Retirees | Many retirees are on fixed incomes; a lower property‑tax burden can affect the sustainability of retirement budgets. |
| Real‑estate investors | Property‑tax rates directly influence cash‑flow calculations and net‑operating income for rental properties. |
| Policy analysts & local officials | The contrast highlights how state‑level tax structures impact revenue generation and resident cost of living. |
The data are purely quantitative; they do not account for other fiscal factors such as state income taxes, sales taxes, or differences in public‑service quality, which may also influence decision‑making.
Summary
Based on the most recent ACS estimates, Delaware’s effective property‑tax rate (0.53 %) is markedly lower than Texas’s (1.58 %). This rate difference results in annual tax savings of $2,623 on a $250k home and $5,244 on a $500k home. Stakeholders who prioritize a lower ongoing property‑tax expense—particularly homeowners, retirees, and real‑estate investors—may find Delaware’s tax environment more advantageous, while the higher Texas rates reflect the state’s reliance on property taxes to fund local services.
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Data Source
All figures are drawn from the U.S. Census Bureau's 2023 American Community Survey (5‑year estimates). This comprehensive dataset provides reliable, standardized property tax information across all states.