Delaware Paycheck Calculator

Delaware imposes a state income tax of 2.2%-6.6%. No sales tax, progressive income tax. Your actual Delaware tax liability depends on your filing status, deductions, and taxable income.

In addition to Delaware state tax, all workers pay federal income tax (10%—7% progressive brackets) and FICA taxes (7.65% combined). Use our calculator above to see your complete tax breakdown.

Delaware has a progressive state income tax system with seven brackets ranging from 0% to 6.6%. The Delaware Division of Revenue administers state taxes. Despite the relatively high top rate, Delaware offers generous standard deductions that result in many low-to-moderate income residents paying little or no state income tax.

Key Tax Features: Delaware does not tax Social Security benefits. The state also provides a tax credit for pension and retirement income. Delaware's first $2,400 of dividend income is tax-exempt. The state conforms to many federal tax provisions but has its own rules for certain deductions.

Business-Friendly Features: Delaware is famous for its business-friendly incorporation laws, with many corporations legally headquartered there even if they operate elsewhere. However, individuals physically working in Delaware still owe income tax to Delaware regardless of where the company is incorporated.

No Local Taxes: Delaware does not impose any local income taxes on wages, and there is no state sales tax. However, the state does levy a gross receipts tax on businesses.

Delaware is one of the few states with no sales tax, though it does levy a progressive income tax. The state is famous as a corporate haven —more than 60% of Fortune 500 companies are incorporated in Delaware.