Question 1

What is Delaware's state income tax rate for 2025?

Accepted Answer

Delaware uses a 7-bracket progressive structure under 30 Del. C. Section 1102: 0% on the first $2,000 of taxable income; 2.2% on $2,001-$5,000; 3.9% on $5,001-$10,000; 4.8% on $10,001-$20,000; 5.2% on $20,001-$25,000; 5.55% on $25,001-$60,000; and 6.6% on income above $60,000. Delaware brackets are uniform across single, MFJ, MFS, and HoH filers and have been unchanged since tax year 2014.

Question 2

Does Delaware have a state sales tax?

Accepted Answer

No. Delaware is one of only five states with no statewide sales tax (the others being Alaska, Montana, New Hampshire, and Oregon). However, Delaware does impose a gross receipts tax on businesses (0.0945% to 1.9914% depending on business activity), which is not a direct consumer tax but does affect retail pricing statewide.

Question 3

What is Delaware's retirement and pension exclusion?

Accepted Answer

Under 30 Del. C. Section 1106(b)(3), Delaware offers a pension and retirement income exclusion of $2,000 for taxpayers under age 60 and $12,500 for taxpayers age 60 or older, applied per person. A married couple both age 60 or older filing jointly can therefore exclude up to $25,000 of qualifying retirement income. Social Security benefits are fully exempt from Delaware state income tax at all ages.

Question 4

Does Wilmington charge a local income tax?

Accepted Answer

Yes. The City of Wilmington imposes a 1.25% Earned Income Tax on wages earned within city limits, applied to both residents and non-residents who work in Wilmington. This local tax is typically withheld by employers and is separate from and additional to Delaware state income tax. Wilmington is currently the only Delaware municipality with a local income tax.

Question 5

What is Delaware's standard deduction for 2025?

Accepted Answer

For tax year 2025, Delaware's standard deduction is $3,250 for single, MFS, and HoH filers and $6,500 for married-filing-jointly filers. Taxpayers age 65 or older, or those who are blind, receive an additional $2,500 standard deduction per qualifying condition. Delaware also allows a $110 non-refundable personal credit per taxpayer and per dependent claimed on the state return.

Delaware Income Tax Calculator

Delaware Tax Calculator

Tax Results

About Delaware Income Tax

More Tax & Financial Tools