The cost of living in Delaware is just above the national average, despite being a sales-tax-free haven. A single adult needs at least $36,896 per year to live in Delaware.

From beautiful east-coast beaches to rich historical monuments, Delaware, also known as the First State, is a genuine American treasure. But even though this state is sales-tax-free, its cost of living is still above the national average.

Here to break down the real costs of living in Delaware is

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How high is the cost of living in Delaware?

You may have assumed that because Delaware has no state sales tax, its cost of living would be lower than the national average. Yet surprisingly, Delaware’s cost of living index is 102.7, which is just above the national average of 100. The cost of living in Delaware is similar to

Virginia

with a cost of living index of 103.7, and

Pennsylvania

with a cost of living index of 102.5.

For Delaware residents, this means that they pay slightly more than the average American for essential living costs like housing, food, transportation, and healthcare. Here’s what these essential expenses cost in Delaware compared to the national average.

Food: $279 to $1000 per month

Food comes out on top as one of the most essential costs of living. In this case, we’re only focusing on your monthly grocery bill, so this excludes any takeout or restaurant outings.

According to MIT’s

Living Wage Calculator

, the annual cost of food in Delaware ranges from $3,351 to $11,999 according to family size, number of dependents versus working adults, location, and total income. This breaks down to $279 per month on groceries for a single adult and a whopping $1000 for a family of five. To compare, the Bureau of Labor Statistics found in 2020 that the average monthly grocery bill for US households was approximately $411.

Remember that this cost doesn’t include your morning Starbucks run or your date night last Friday. These are additional costs on top of your monthly grocery bill!

Healthcare: $679 per month

The Bureau of Economic Analysis released a report in 2020 stating that the average annual healthcare cost per person in Delaware is $8,156, which breaks down to $679 per month. This is a particularly costly aspect of Delaware living, as the national average healthcare cost is $477 per month.

However, each individual’s healthcare cost will vary widely depending on their insurance coverage, health status, and dependents. If you have a child with an expensive prescription, you’ll likely be paying much more than a single adult who rarely seeks professional healthcare.

Housing: $849 to $1,460 per month

Housing is another major living expense, but thankfully, housing costs are only slightly above the national average in Delaware. The average home value in Delaware is $244,700—$39,800 more than the national median home value of $204,900.

The monthly breakdown of your housing costs in Delaware depends largely on the type of home you live in. Let’s take a closer look:

Average monthly mortgage payment: $1,121

Average studio rent: $849

Average one-bedroom rent: $886

Average two-bedroom rent: $1,094

Average three-bedroom rent: $1,302

Average four-bedroom rent: $1,460

These averages represent the whole state and don’t capture cost differences between urban and rural areas. Rent for a one-bedroom apartment in

Wilmington

is $1,416—nearly as much as the state average for a four-bedroom! To keep housing costs affordable, opt for smaller communities in Delaware within proximity to large cities.

Transportation: $813 to $1,251 per month

Unless you live a reasonable walking distance away from your workplace, shopping, and other amenities, transportation is another major cost of living in Delaware. The average single adult spends $813 per month on transportation costs, while a family of five spends around $1,251 per month to get where they need to go. For context, the national average for a two-person household is $818 per month.

To put those numbers in perspective, here’s how monthly transportation costs break down:

Average annual cost of car insurance in Delaware: $913 to $1,483 (

liability

only vs.

full coverage

)

Wilmington monthly bus pass: $80

Average

commute length

in Delaware: 8 miles (one way)

Average cost of a gallon of gas, September 2022: $3.568

MORE:

What are the car insurance laws in Delaware?

How much you need to live comfortably in Delaware: $36,896 to $88,599 per year

Considering the figures presented above, an individual with no dependents needs to make at least $36,896 before taxes or $17.74 per hour to support themselves in Delaware. A family of five requires at least $88,896 before taxes or $42.60 per hour to live in Delaware. Considering Delawares’ minimum wage of $10.50 per hour, it can be tough to make ends meet, even in a state with a cost of living that’s only slightly higher than the national average.

Making beyond the required wage and living comfortably may be challenging. Check out the list below to see how some basic non-essentials compare in cost to the national average:

Average cost of a date: $134.27 (US average: $116)

Average cost of a night at the movies: $9.11 (US average: $10.61)

Average cost of a Big Mac: $3.99 (US average: $3.99)

A 100-ticket book at Funland: $48 (US average theme park ticket price: $91)

Average sales tax: 0.00%(US average: 5.09%)

A comfortable life looks different to everyone, and you may be able to get by comfortably on just $32,336 per year. Thankfully, non-essentials cost only slightly more or are on par with the national average prices of these indulgences, but you’ll probably need to make more than the state’s minimum wage to enjoy them.

MORE: How do I get car insurance for about $50 a month?

The Delaware cities with the lowest cost of living

While the cost of living in Delaware is slightly above the national average, there are plenty of cities and towns in Delaware that enjoy a more affordable cost of living than Delaware’s biggest, most populous cities. Here’s a list of the top five most affordable cities in Delaware according to their cost of living index (COLI) scores:

Cheswold (COLI 88): You can snag a home for just $160,700 in Cheswold, a quaint community located in Kent County.

Greenwood

(COLI 94.6): This charming community offers low housing prices and is known for its great antiquing and close-knit feel.

Blades (COLI 90.3): Just ten minutes from the Maryland border, Blades is located across the Nanticoke River from Seaford, and offers unbeatable rent and home prices.

Felton

(COLI 101.4): Felton is located close to Dover, providing residents a small-town feel with access to big-city amenities. The town’s claim to fame is their water park located in their state park,

Killen’s Pond

Elsmere (COLI 93.9): Elsmere is famed as the first official suburb in Delaware and is a great place to live affordably. It’s just 45 minutes from downtown Philadelphia, thanks to its close proximity to the Pennsylvania border!

If you’d like to adopt the east coast lifestyle in a budget-friendly way, keep these five affordable Delaware communities in mind!

How to easily find home and car insurance in Delaware

Delaware living is slightly more expensive than the national average, but that doesn’t mean you can’t save on your insurance costs to make living more affordable. On average,

Delaware car insurance

is 19% higher than the national average for auto insurance. The good news is that you can actually save money by shopping for insurance.

That said, switching providers comes with a lot of work—but it doesn’t have to! Jerry makes shopping for a new

insurance policy

a breeze.

Simply download the app, and

Jerry

does all the paperwork for you and even helps cancel your old policy. Download the app, answer a few questions, then set your insurance updates to autopilot. Jerry will even send you new quotes every six months, so you always have the best policy at the right price.

MORE: Homeowners insurance in Delaware

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