Does Delaware have a state income tax?

Yes. Delaware has a state income tax with a top rate of 6.6%.

How much is Delaware state tax on a $100,000 salary?

On a $100,000 salary in Delaware, state income tax is approximately $3,356. Your estimated total take-home pay is $75,824/year.

What other taxes does Delaware have?

Delaware has NO state sales tax — one of only five states without one. This makes retail purchases significantly cheaper than neighboring states. Property taxes are among the lowest in the US at roughly 0.55% of assessed value. Delaware is famous as a corporate registration hub due to its business-friendly laws.

How does Delaware compare to other states for taxes?

Delaware's top rate of 6.6% compares unfavorably — above the national median for state income taxes.

Does Delaware have a sales tax?

No — Delaware is one of only 5 states with no state or local sales tax. This can save residents and shoppers significant money on large purchases. Delaware's 'no sales tax' status also attracts shoppers from neighboring states like New Jersey, Pennsylvania, and Maryland.

What are Delaware's income tax rates?

Delaware has 7 income tax brackets from 0% (first $2,000) to 6.6% (above $60,000). Most working adults pay an effective rate of 4–5.5%. The $3,250 standard deduction further reduces taxable income.

Why do so many companies incorporate in Delaware?

Delaware's Court of Chancery provides a specialized business court with centuries of corporate law precedent. Delaware also has no sales tax, no inheritance tax, no stock transfer tax, and its corporate income tax only applies to profits earned within Delaware. Over 60% of Fortune 500 companies are incorporated there.

State Tax Guide

Delaware State Income Tax Guide (2026)

Delaware has a progressive income tax with rates up to 6.6% — and uniquely, no state sales tax, making it one of the most business-friendly states in the Mid-Atlantic.

Top State Rate

6.6%

$100k Take-Home

$75,824

/year (single)

State Tax on $100k

$3,356

single filer

Delaware Income Tax Brackets (2026)

Marginal Rate	Taxable Income (Single Filer)
0%	$0→$2,000
2.2%	$2,000→$5,000
3.9%	$5,000→$10,000
4.8%	$10,000→$20,000
5.2%	$20,000→$25,000
5.55%	$25,000→$60,000
6.6%	$60,000→Above $60,000

Each rate applies only to income within that bracket. Your effective rate is the average across all brackets — meaningfully lower than your top marginal rate.

Standard deduction: $3,250 single / $6,500 married filing jointly

Brackets reflect the most recently published schedules. Some states inflation-index thresholds annually — specific 2026 amounts may shift slightly. Verify with your state's Department of Revenue before filing.

$100,000 Salary in Delaware — Full Tax Breakdown

Category	Annual	Monthly
Gross Salary	$100,000	$8,333
Federal Tax	−$13,170	−$1,098
FICA (SS + Medicare)	−$0.00	−$0.00
Delaware State Tax	−$3,356	−$280
Take-Home Pay	$75,824	$6,319

Assumes single filing status, standard deduction, no 401(k) or HSA contributions. 2026 tax year.

Run your numbers through the right calculator

Salaried, freelance, bonus, overtime, or tips — pick the tool that matches your event.

Salary Calculator

Annual gross to take-home: federal + state + FICA + 401(k)/HSA modeling for all 50 states.

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Overtime Calculator

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1099 Tax Calculator

1099, sole prop, or LLC: self-employment tax (15.3%) plus quarterly estimates.

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Bonus Calculator

Year-end, sign-on, retention, or commission. Compare flat 22% vs aggregate withholding.

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The 30-second version

1.Delaware has 7 progressive brackets from 0% to 6.6%. The 6.6% top rate kicks in at just $60,000 of taxable income — meaning most professionals are effectively in the 6.6% bracket on most of their income. Standard deduction is unusually low ($3,250 single).
2.NO state sales tax — one of only five such states. Major shopping advantage; many NJ/PA/MD residents drive to Delaware for big-ticket purchases.
3.Wilmington 1.25% wage tax applies to residents AND non-residents working in Wilmington. Suburban DE living avoids it.
4.Property tax: ~0.55% effective average — among the lowest in the country. Three counties (New Castle/Wilmington, Kent/Dover, Sussex/beaches) all friendly.
5.Delaware Court of Chancery + business-friendly LLC laws make DE the corporate registration capital. 60%+ of Fortune 500 companies are incorporated here. Personal tax angle: separate from the business angle.

Why you can trust these numbers

Numbers reflect 2026 IRS federal brackets, FICA caps, and current Delaware Department of Finance progressive brackets. The calculator at the top uses a flat-rate approximation (~4%) for DE — this UNDER-states your actual DE tax bill at most income levels. For accurate DE tax, the 6.6% top rate applies above $60K of taxable income; below $60K, the lower brackets apply progressively. Add Wilmington 1.25% wage tax if you live or work there.

Sources: federal brackets + standard deduction from IRS Rev. Proc. 2025-32; state brackets verified against the Tax Foundation 2026 State Income Tax Rates compilation and the Delaware Department of Revenue's published 2026 schedule.

The brackets — "6.6%" applies to most working adults

Delaware's progressive brackets compress quickly. The 0% bracket covers only the first $2,000; 2.2% to $5K; 3.9% to $10K; 4.8% to $20K; 5.2% to $25K; 5.55% to $60K; 6.6% above $60K. So for most professionals (taxable income above $60K), the marginal rate is 6.6% on the bulk of income — comparable to or slightly above CT (6.99%), VA (5.75%), NC (3.99%).

Standard deduction is unusually low at $3,250 single / $6,500 MFJ — well below federal $15K/$30K. Personal exemption is $110 per filer (a credit, not a deduction). Net effect: DE taxable income is meaningfully larger than federal taxable income on the standard-deduction path.

Delaware's other distinction: NO state sales tax. One of only five (AK, MT, NH, OR, DE). This is a major consumption advantage — residents avoid the 6–9% sales tax that surrounds them in NJ, PA, MD, and NY. Cross-border shopping into DE is a real economic phenomenon.

What you'll actually pay — two real-life scenarios

Two scenarios to anchor the math.

Illustrative — single filer, federal standard deduction, full-year DE residency, W-2 income. Wilmington 1.25% wage tax shown separately. Two-earner MFJ households pay more FICA than the calculator shows. Ballparks, not invoices.

Scenario 1: Wilmington banking professional, $130,000

Federal income tax	~$20,200
Delaware state income tax (~$6,575)	~$6,575
Wilmington wage tax (1.25%)	~$1,625
FICA (Social Security + Medicare)	~$9,950
Total taxes	~$38,350
Annual take-home	~$91,650
Effective state + city rate	~6.3%

Wilmington banking professional — JPMorgan Chase Wilmington (largest private employer in DE), Capital One, M&T Bank, Discover Financial, Bank of America credit card operations. Same role in NJ at $130K: ~$5,300 NJ tax + much higher property tax. Same role in MD at $130K: ~$5,000 MD + ~$4,000 county piggyback = $9,000. DE's $6,575 + $1,625 Wilmington = $8,200 — competitive with MD, slightly above NJ on the income tax line, but DE's no sales tax + lower property tax usually nets out favorably.

Scenario 2: Dover state employee, $75,000

Federal income tax	~$8,100
Delaware state income tax (~$2,950)	~$2,950
FICA (Social Security + Medicare)	~$5,750
Total taxes	~$16,800
Annual take-home	~$58,200
Effective DE tax rate	~3.9%

Dover-area state employee or healthcare worker (Bayhealth, ChristianaCare). No Wilmington wage tax (Dover is in Kent County, separate municipal tax structure). The $0 bracket on first $2K + lower middle brackets keep effective rate moderate. Combined with Dover's low cost of living (median home $250K) and DE's no sales tax, the after-tax-after-cost-of-living is very competitive with peer states.

Property tax + Wilmington wage tax

DE property tax effective rates by county (approximate, primary residence): New Castle (Wilmington area) 0.50–0.65%, Kent (Dover area) 0.40–0.55%, Sussex (Lewes/Rehoboth/Bethany Beach) 0.30–0.45%. Statewide average ~0.43%. Among the lowest in the country. Sussex County's beach-area effective rates are remarkably low even on high-value resort properties.

Wilmington wage tax: 1.25% on wages earned by residents + non-residents working in Wilmington. Filed via Wilmington City quarterly and annual reports. Suburban New Castle County workers (Newark, Hockessin, Greenville) avoid the city wage tax. Kent and Sussex counties: no city wage taxes anywhere.

Things financially comfortable Delawareans actually do

Max your 401(k) ($24,500 in 2026) — pre-tax for federal AND Delaware.
Max your HSA if eligible — pre-tax for federal AND DE.
Backdoor Roth IRA — fully legal.
Mega backdoor Roth if your employer's 401(k) plan allows.
Delaware College Investment Plan (529) — DE allows a state-tax deduction up to $1,000 single / $2,000 MFJ for contributions to DE's 529 plan. Modest but worth claiming.
Cross-border shopping — DE has no sales tax. Big-ticket purchases (electronics, appliances, furniture, vehicles) are 6–9% cheaper than in NJ, PA, MD, NY. Some retailers near state borders see DE residents driving in for major purchases.
Pension exclusion — DE excludes up to $12,500 of pension/retirement income for filers 60+. SS fully exempt. Combined with very low property tax, DE is exceptionally retirement-friendly — a major reason Sussex County beach communities (Rehoboth, Lewes, Bethany Beach) have grown rapidly.
Wilmington vs suburb decision — if you're choosing between renting/buying in Wilmington proper vs Newark/Hockessin/Greenville, the 1.25% wage tax is meaningful (~$1,000–$2,000/year for typical professionals). Factor into the residence decision.
Estate tax — DE repealed the estate tax effective 2018. Major HNW improvement.

Real questions people actually ask

Q: Does Delaware really have no sales tax?

Yes. DE is one of five states (AK, MT, NH, OR, DE) with no state or local sales tax. The Delaware Constitution doesn't formally prohibit a sales tax, but the political consensus is firmly against introducing one — DE's economy benefits substantially from cross-border shopping by NJ/PA/MD/NY residents. Realistically, plan around no sales tax for the foreseeable future.

Q: What's the Wilmington wage tax?

Wilmington (the city) levies a 1.25% tax on wages earned for work performed within the city limits — applies to both residents and non-residents. Filed via Wilmington City quarterly and annually. Most Wilmington-based employers withhold automatically. Workers based in Wilmington but living in suburban DE: still owe the wage tax on Wilmington workdays. Hybrid workers should track workdays carefully.

Q: Why do companies incorporate in Delaware if they're not headquartered here?

Two main reasons: (1) Delaware Court of Chancery — a specialized business court with 200+ years of corporate law precedent and judges who handle complex corporate disputes efficiently; (2) Delaware General Corporation Law — extremely flexible and well-defined rules for LLC formation, fiduciary duty, M&A processes, etc. The TAX angle for DE corporations is generally neutral (DE corporate income tax applies only to profits earned in DE; out-of-state operations are taxed by the state where the activity occurs). Over 60% of Fortune 500 companies are DE-incorporated, even though most are headquartered elsewhere.

Q: How does DE compare to neighboring states for retirees?

DE is exceptionally retirement-friendly. SS exempt, $12,500 pension exclusion 60+, very low property tax (~0.43% statewide), no sales tax (groceries, prescriptions all cheaper than neighbors), no estate tax (repealed 2018). Sussex County (Rehoboth, Lewes, Bethany Beach) has been a top retirement-relocation destination from NJ, NY, PA, and DC for years. Combined with proximity to East Coast cities, DE's beaches are within driving distance for grandkid visits.

Our honest opinion (which is just an opinion)

Delaware is an underrated tax state. The 6.6% top rate sounds high but is competitive with peer Mid-Atlantic states (CT 6.99%, NJ 6.37% on most professionals' income, NY higher). The combination of NO sales tax + very low property tax + recent estate tax repeal makes DE one of the friendliest total-tax-burden states in the Northeast — and exceptionally retirement-friendly.

The case for Delaware:

NO state or local sales tax (one of only 5 states)
Property tax among the lowest in the country (~0.43%)
Estate tax repealed effective 2018
Generous retirement structure: SS exempt + $12,500 pension exclusion 60+
Strong banking and financial services economy
Beach access (Sussex County) draws major retirement migration
Court of Chancery makes DE the corporate-formation capital

The case against:

6.6% top rate kicks in at just $60K — most professionals pay near top rate
Standard deduction unusually low ($3,250 single)
Wilmington wage tax (1.25%) for city workers
Calculator simplification — DE's actual bill is higher than the calculator's flat 4% approximation suggests
Small state, less metro depth than peers

Honest take: DE is a quiet winner for retirees and consumption-heavy households. The no-sales-tax angle compounds annually for shoppers. For working professionals: the income tax is moderate, comparable to peer Mid-Atlantic states. For HNW retirees: DE is competitive with FL on many dimensions, with much closer proximity to NY/NJ/PA family.

What now

Run your numbers in the calculator above — note that the calculator uses a flat 4% approximation for DE that under-states your actual bill. Real DE tax at $115K of taxable income: ~$6,575 (the calculator shows ~$4,600). If you live or work in Wilmington, add the 1.25% wage tax. If you're 60+, claim the $12,500 pension exclusion. The biggest tax mistake most Delawareans make isn't paying too much state tax — it's missing the pension exclusion at 60+ or being surprised at the actual DE bill (vs the calculator's simplified estimate).

Sources & further reading

A few honest notes

Not personal tax, legal, or financial advice. Verify with a licensed CPA, EA, or tax attorney before making meaningful decisions.
Tax law changes. This guide reflects 2026 IRS schedules and current DE Department of Finance rules.
The calculator at the top uses a flat 4% approximation for DE — your actual DE bill at $60K+ taxable income will be higher (DE's top rate is 6.6%). For accurate state-tax estimates, compute the DE bracket-by-bracket calculation manually or consult DE Form 200-01.
Property tax estimates vary by county and school district — check your county assessor's website.
Wilmington wage tax applies only to wages earned in Wilmington — verify your work location.
The numbers are illustrative — scenarios don't include every credit, deduction, or wrinkle that might apply to you.
No client relationship is created by reading this page.

Last updated April 2026 with 2026 IRS schedules and current DE Department of Finance guidance.