Delaware also does not have state income tax.  It is our own home-grown tax haven.  
Delaware DOES have an income tax, and a fairly stiff one at that.

Property taxes, however, are relatively low compared to neighboring New Jersey. Overall, the cost of living is not all that much different from neighboring equivalent areas in PA, MD, and NJ, particularly since real estate prices are now more in line with those states.  

The absence of a sales tax is nice, but unfortunately DE has a de facto sales tax on cars by means of a registration 'fee' that is a certain percentage of the imputed value of the vehicle.

I really don't think there is all that much cross-border traffic from neighboring states to take advantage of the absence of sales tax. Anyway, that traffic would show up in the statistics for the neighboring states rather than DE.

State governments generally get the amount of money out of you that they want to, by one means or another. However, property taxes in NJ are really horrendous.

DE is an incorporation haven soley because it's incorporation laws are purposely lax and because it has a rather well developed corporate law system.  It is also a good place to register a pleasure boat, which is why you can go to almost any marina on the East Coast and see boats with Wilmington, DE as their 'home port'.

I stand corrected.  Thanks.