Key Tax Facts: Delaware
- No state or local sales tax - major shopping draw
- Pension exclusion: up to $12,500 for those 60 and older
- Delaware filing deadline is April 30, not April 15
- City of Wilmington imposes a separate 1.25% earned income tax
Estimate Your 2026 Federal and Delaware State Income Tax
Delaware State Income Tax Overview
Delaware imposes a graduated state income tax with six brackets ranging from 0% to 6.6%. Income up to $2,000 is exempt, and the top rate of 6.6% applies to income above $60,000. Delaware is known as a tax-friendly state for retirees - there is no sales tax statewide, and the state offers a significant pension exclusion of up to $12,500 for residents 60 and older. The standard deduction is $3,250 for single filers and $6,500 for married couples filing jointly. Delaware also allows a personal credit of $110 per exemption claimed.
What Is Different About Delaware's Income Tax
Deductions and exemptions
Delaware's standard deduction is $3,250 for single filers and $6,500 for joint filers, with an extra $2,500 for filers 65 or older or blind. Itemizing is allowed using federal amounts, with state tax paid removed. Personal credits of $110 per exemption replace exemption deductions.
Credits worth knowing
Delaware offers a child care credit equal to 50% of the federal credit, a credit for taxes paid to other states, and an earned income credit that can be taken as 4.5% refundable or 20% non-refundable of the federal amount. Delaware has no sales tax, which is the state's most distinctive feature.
Retirement, capital gains, and other income
Social Security and Railroad Retirement benefits are exempt. Taxpayers 60 and older can exclude up to $12,500 of pension and eligible retirement income, and those under 60 can exclude up to $2,000 of pension income. Military pensions get the same exclusion, and capital gains are taxed as ordinary income up to the 6.6% top rate.
Rules summarized from the Delaware Division of Revenue guidance for tax year 2026. Amounts that index annually are described in general terms; confirm the current figure on the official form instructions.
Delaware Income Tax Brackets (Single Filers, 2026) projected
These are the Delaware state income tax brackets for single filers. Married-filing-jointly brackets use wider income thresholds, carried forward from 2025 pending official 2026 figures. Only the income within each bracket is taxed at that rate -- not your entire income.
| Taxable Income (Single) | Tax Rate |
|---|---|
| $0 - $2,000 | 0% |
| $2,000 - $5,000 | 2.2% |
| $5,000 - $10,000 | 3.9% |
| $10,000 - $20,000 | 4.8% |
| $20,000 - $25,000 | 5.2% |
| $25,000 - $60,000 | 5.55% |
| Over $60,000 | 6.6% |
Source: Delaware Division of Revenue. Brackets shown are for single filers; married-filing-jointly thresholds are wider.
What a Delaware Resident Actually Pays: A Worked Example
Your effective tax rate is almost always lower than your top bracket. Here is how the math works for a single filer earning $65,000.
Where Delaware Stands Among the 50 States
Delaware's top rate of 6.6% ranks #12 of the 41 states that tax wages. The median top rate across those 41 states is 5.2%, so Delaware is above the middle of the pack. It is one of 27 states with a graduated schedule, using 7 brackets; the top rate starts at $60,000 of taxable income, and the lowest bracket ends at $2,000.
On sales tax the picture is different: Delaware's combined state and average local rate of 0% ranks #47 of 50, against a national median of 7.00%.
Delaware State Tax at Five Income Levels (2026, single filer)
| Taxable income | Delaware tax | Effective rate | Marginal rate |
|---|---|---|---|
| $40,000 | $1,834 | 4.58% | 5.55% |
| $65,000 | $3,274 | 5.04% | 6.6% |
| $100,000 | $5,584 | 5.58% | 6.6% |
| $150,000 | $8,884 | 5.92% | 6.6% |
| $250,000 | $15,484 | 6.19% | 6.6% |
Brackets applied directly to the taxable-income figure shown, before Delaware-specific deductions, exemptions, or credits. Federal tax is separate and comes on top of every row.
Delaware vs. Its Neighbors on $75,000 of Taxable Income
A Delaware resident with $75,000 of taxable income pays about $3,934 in state income tax. Of Delaware's 3 neighboring states, 3 would tax that income less and 0 would tax it more -- Delaware is the most expensive state in its region on this measure.
| State | Structure | Tax on $75,000 | Top rate | Sales tax |
|---|---|---|---|---|
| Delaware (you) | Graduated | $3,934 | 6.6% | 0% |
| Pennsylvania | Rate to 3.07% | $2,303 | 3.07% | 6.34% |
| New Jersey | Rate to 10.75% | $2,651 | 10.75% | 6.60% |
| Maryland | Rate to 5.75% | $3,510 | 5.75% | 6% |
Frequently Asked Questions -- Delaware Income Tax
Does Delaware have a state income tax?
Yes. Delaware imposes a state income tax with a top marginal rate of 6.6%. This is separate from your federal income tax obligation.
What is the Delaware income tax rate for 2026?
Delaware uses a graduated income tax system with rates from 0% to 6.6%. Only the income within each bracket is taxed at that bracket's rate -- not your entire income.
Do I have to file a Delaware state tax return?
Most full-year Delaware residents with income above the state filing threshold must file a state return. Check the Delaware Division of Revenue for current thresholds and requirements.
How accurate is this estimate?
The federal figure uses the official IRS 2026 brackets and standard deduction. The Delaware figure applies the 2026 single-filer rate schedule to the same taxable income; it does not model Delaware-specific deductions, exemptions, credits, or local income taxes, so treat it as a planning number and confirm with the Delaware Division of Revenue or a tax professional before filing.
How does Delaware compare with nearby states?
On $75,000 of taxable income, Delaware collects about $3,934. Pennsylvania collects $2,303, New Jersey collects $2,651, Maryland collects $3,510. See the comparison table above.
Where does Delaware rank on state income tax?
Delaware's top rate of 6.6% ranks #12 of the 41 states with an income tax, against a median top rate of 5.2%. Its combined sales tax of 0% ranks #47 of 50.
Does this calculator include federal income tax?
Yes. It estimates your 2026 federal income tax using the official IRS 2026 brackets, then applies the Delaware rate schedule to the same taxable income and shows both figures plus the combined total.
Where can I find official Delaware tax forms?
Official forms, instructions, and filing guidance are available at the Delaware Division of Revenue.
What is the sales tax rate in Delaware?
Delaware's combined state and average local sales tax rate is 0%. This is separate from income tax and applies to most retail purchases -- use our sales tax calculator to check a specific purchase.
When are Delaware 2026 state taxes due?
2026 taxes are generally filed in 2027. The Delaware filing deadline is April 30, 2027 -- note this differs from the federal deadline of April 15, 2027, so mark both dates.
Understanding Your Delaware Tax Estimate
Your results combine two separate bills: federal tax owed to the IRS, and Delaware state tax owed to the Delaware Division of Revenue. The state return is filed separately from your federal Form 1040, with a state filing deadline of April 30. For the mechanics of how bracket math actually works -- why your effective rate is almost always lower than your top bracket -- see our marginal vs. effective tax rate guide.
Lowering Your Delaware Bill
Pre-tax retirement contributions reduce your federal and Delaware taxable income in the same move -- see our 401(k) contribution limits and HSA limits guides for the current caps. Beyond that, Delaware-specific credits and deductions that don't exist at the federal level are listed at the Delaware Division of Revenue -- worth checking, since these are easy to miss if you only look at federal guidance.
Combined Sales + Income Tax Picture
Delaware's combined state-plus-average-local sales tax rate is 0%. If you're self-employed, that's an added layer on top of income tax -- our self-employment tax calculator covers the SE-specific piece separately.
Disclaimer: Estimates for educational purposes only. State tax results are approximations based on published bracket data and do not account for all deductions, credits, exemptions, local taxes, or individual situations. Not tax, legal, or financial advice. Consult the Delaware Division of Revenue or a qualified tax professional for guidance specific to your situation.