Delaware Tax Brackets
How to read this: Only the income within each bracket is taxed at that rate. Your total tax is the sum across brackets.
| Income Range | Tax Rate |
|---|---|
| $0 - $2,000 | 0.00% |
| $2,000 - $5,000 | 2.20% |
| $5,000 - $10,000 | 3.90% |
| $10,000 - $20,000 | 4.80% |
| $20,000 - $25,000 | 5.20% |
| $25,000 - $60,000 | 5.55% |
| $60,000+ | 6.60% |
Brackets shown for single filers. Married filing jointly brackets may differ. Use the calculator above to see your specific situation.
Key Facts That Affect Your Take-Home Pay
- Delaware uses a progressive income tax system with seven brackets, starting at 0% for the first $2,000 of income (for all filing statuses) and escalating to a top rate of 6.6% for income above $60,000, making Delaware's top rate moderate compared to high-tax progressive states but still higher than flat-tax states.
- Delaware's progressive brackets are relatively spread out at the bottom with a zero-percent bracket for the first $2,000, but then quickly escalate through multiple brackets. For a $75,000 earner, income is taxed across brackets creating an effective rate around 5.5%-6%, not the top 6.6% rate.
- Delaware does not charge income tax at city or county levels, so your withholding doesn't differ based on work location. All Delaware residents have the same income tax structure—only the state progressive brackets apply.
Common Mistakes People Make
Misconception: 'Progressive tax means I'll pay the top 6.6% on all my income in Delaware.' Reality: Delaware's progressive system starts at 0% for the first $2,000 of income, and most middle-income earners pay effective rates around 5%-6%, not 6.6%. The 6.6% rate only applies to income above $60,000. Someone earning $75,000 pays an effective rate around 5.5%-6% (~ $4,125-$4,500 annually), while the same earner in a flat-tax state like Pennsylvania would pay $2,300 (3.07% flat, though PA may have local EIT).
Misconception: 'Delaware has no sales tax, so I'll save money overall.' Reality: While Delaware has no sales tax (a significant advantage for spenders), the state relies heavily on income tax and property taxes to compensate. A high earner in Delaware pays up to 6.6% income tax, which could be higher than what they'd pay in a flat-tax state like Pennsylvania (3.07% flat). Additionally, Delaware property taxes can be significant. The lack of sales tax benefits big spenders, but high earners may still pay more in income tax than in lower-tax states.
Misconception: 'Delaware's tax structure is the same as other states with no sales tax.' Reality: Delaware is one of only five states with no sales tax (along with Alaska, Montana, New Hampshire, and Oregon). This creates a unique revenue model where Delaware relies more heavily on income tax and property taxes. Unlike zero-income-tax states like Texas or Florida that rely on sales/property taxes, Delaware taxes income progressively (up to 6.6%) while exempting sales transactions from taxation.
One Thing to Know
Delaware is one of only five states with no sales tax, which benefits big spenders, but the state compensates with higher income tax rates. Many people moving to Delaware for the 'no sales tax' benefit are surprised to find their income tax burden is actually higher than in some sales-tax states.
Important Notes
These calculations are estimates based on current tax law. Your actual take-home pay varies based on:
- Pre-tax deductions (401(k), health insurance, HSA, etc.)
- Your W-4 withholding elections
- Additional income or deductions at tax time
- Individual circumstances and tax situations
Tax rates are subject to change. Federal and state tax laws may be updated annually. This is not tax advice. For personalized help, consult a tax professional familiar with Delaware tax laws.