Delaware State Tax Rates 2025-2026 Full Guide – Delaware remains one of the most tax-friendly states for individuals and businesses in the U.S., thanks to its 0% state sales tax, competitive income tax structure, and business-friendly policies. Whether you’re a resident, non-resident, or business owner planning for tax years 2025 and 2026, this comprehensive guide covers everything you need to know about Delaware state tax rates. All information is based on the latest data from the Delaware Division of Revenue and Tax Foundation as of 2026.
Rates have remained stable with no major changes enacted for 2025-2026 tax years. Delaware offers no sales tax and low overall burden compared to many states—ideal for retirees, remote workers, and corporations.
Delaware Personal Income Tax Rates 2025-2026
Delaware imposes a graduated personal income tax on taxable income for residents and non-residents with Delaware-sourced income. The brackets and rates are identical for all filing statuses (single, married filing jointly, head of household, etc.) and have not changed since 2014.
Here are the 2025-2026 Delaware state income tax brackets:
| Taxable Income Range | Tax Rate | Tax Calculation |
|---|---|---|
| $0 – $2,000 | 0% | $0 |
| $2,001 – $5,000 | 2.2% | $0 + 2.2% of amount over $2,000 |
| $5,001 – $10,000 | 3.9% | $66 + 3.9% of amount over $5,000 |
| $10,001 – $20,000 | 4.8% | $261 + 4.8% of amount over $10,000 |
| $20,001 – $25,000 | 5.2% | $741 + 5.2% of amount over $20,000 |
| $25,001 – $60,000 | 5.55% | $1,001 + 5.55% of amount over $25,000 |
| $60,001 and above | 6.6% | $2,943.50 + 6.6% of amount over $60,000 |
Example: A single filer with $67,751 in taxable income owes $2,943.50 + 6.6% of $7,751 = approximately $3,455 (rounded).
Key notes:
- Taxable income starts from federal AGI with Delaware-specific adjustments.
- Delaware offers a standard deduction (approximately $3,250 single / $6,500 joint for recent years, plus $2,500 additional for age 65+ or blind if not itemizing). Amounts may adjust slightly—verify on the 2025 PIT-RES form.
- Additional credits include those for seniors, child/dependent care, and earned income.
How Delaware Income Tax Compares to Other States?
Delaware’s top rate of 6.6% is moderate. Many high-income states top out at 8-13%. Combined with no state sales tax, Delaware often results in lower overall tax liability for residents. The state ranks favorably in tax burden (around 42nd nationally) with a competitive index ranking of 24th.
Note: Wilmington residents pay an additional local earned income tax (typically around 0.76-1.25%, depending on source), but most of the state does not.
Delaware Corporate Income Tax Rates 2025-2026
Delaware’s corporate income tax is a flat 8.7% on federal taxable income apportioned to the state (using a three-factor formula: property, payroll, and sales).
- Applies to C-corporations and entities taxed as corporations.
- No graduated brackets.
- Delaware also imposes a gross receipts tax on certain businesses (rates vary by industry; see official gross receipts schedule for details).
Delaware remains a top choice for incorporation due to its overall business tax environment, privacy laws, and Chancery Court system—despite the corporate rate.
Delaware Sales Tax Rate: 0% in 2025-2026
One of Delaware’s biggest advantages: no state sales tax. It is one of only five states without a general sales tax.
- State rate: 0%
- Local rates: None
- Combined rate: 0%
This makes Delaware ideal for retail, online shopping, and large purchases. Note: Some localities may have minor fees, but no broad sales tax applies.
Property Taxes in Delaware 2025-2026
Property taxes are levied at the county and municipal level (no statewide rate). Delaware’s effective property tax rate on owner-occupied housing is 0.50%—below the national average and ranked 40th among states.
- Average collections per capita: Lower than most states.
- Rates vary by county (New Castle, Kent, Sussex) and property type.
- Assessment is typically at 100% of assessed value; check local assessors for 2025-2026 rates.
Homeowners benefit from relatively low property taxes combined with no sales tax.
Other Delaware Taxes and Fees
- Estate and Inheritance Taxes: None. Delaware fully repealed its estate tax effective 2018 and has no inheritance tax. Only federal estate tax may apply to very large estates.
- Gross Receipts Tax: Applies to certain businesses (e.g., utilities, retailers) in addition to corporate income tax.
- Gasoline Tax: 23 cents per gallon (relatively low).
- Cigarette Tax: $2.10 per pack (among the lowest nationally).
Delaware has no tax on Social Security benefits for most retirees and offers exclusions for certain pension and retirement income.
Filing Deadlines and Resources for Delaware Taxes 2025-2026
- Personal Income Tax Deadline: Generally April 15, 2026 (for 2025 tax year). Extensions available.
- Corporate Returns: Due on the 15th day of the 4th month after fiscal year-end.
- File Online: Free via the Delaware Division of Revenue portal at revenue.delaware.gov.
- Official 2025 forms (PIT-RES, PIT-NON, etc.) are available now on the Division of Revenue website.
Always use the latest tax tables from revenue.delaware.gov for precise calculations.
Why Choose Delaware for Taxes in 2025-2026?
Delaware stands out with:
- No sales tax → Savings on everyday and big-ticket purchases.
- Moderate income taxes with generous retirement exclusions.
- Low property taxes and business-friendly corporate rules.
- Strong overall tax competitiveness for residents and companies.
Whether you’re relocating, retiring, or running a business, Delaware’s tax structure supports wealth-building and economic growth.
Final Tips for Delaware Taxpayers
- Maximize deductions and credits (especially for seniors and families).
- Use free online filing through the state portal.
- Consult a tax professional for complex situations like non-resident income or business apportionment.
- Check the Delaware Division of Revenue website regularly for any last-minute updates.
For the most accurate and personalized advice, visit the official Delaware Division of Revenue or consult a licensed tax advisor. Tax laws can have nuances based on your specific situation.
This guide reflects the most current information available for tax years 2025-2026. Plan ahead and take full advantage of Delaware’s tax advantages!