Results are estimates for educational purposes only. Based on 2026 IRS federal brackets and Delaware state tax rates. Always consult a qualified tax professional.
Delaware income tax overview
Delaware has a progressive income tax with a top rate of 6.6%, applied across multiple brackets. Despite having an income tax, Delaware is well known for having no state or local sales tax at all, which significantly reduces the overall tax burden on everyday spending. Delaware offers a pension and retirement income exclusion of up to $12,500 for residents aged 60 and older, and Social Security benefits are not taxed. The state's favorable corporate law environment makes it the legal home of a huge share of US corporations, though this primarily benefits state revenue through franchise fees rather than affecting individual income tax rates directly. Wilmington and the broader Delaware Valley benefit from proximity to Philadelphia and the broader mid-Atlantic job market.
2026 Delaware income tax rates
Tax rate
Income range (single filer)
2.2%
$2,001 – $5,000
3.9% – 5.55%
$5,001 – $60,000 (3 brackets)
6.6%
Over $60,000
Worked example: $75,000 salary in Delaware
A $75,000 salary in Delaware results in approximately $3,900 in state income tax (effective ~5.2%), plus $12,580 federal tax, $4,650 Social Security, and $1,088 Medicare. Annual take-home is approximately $52,782, or $2,030 bi-weekly.
Key facts: 6.6% top rate · No sales tax anywhere in the state · $12,500 retirement income exclusion at 60+
Frequently asked questions — Delaware income tax
No. Delaware is one of five states with no state or local sales tax at all, which is a major draw for shoppers from neighboring high-sales-tax states like Pennsylvania and New Jersey.
No. Delaware does not tax Social Security benefits, and also offers a pension and retirement income exclusion of up to $12,500 per person for residents aged 60 and older.
Delaware's well-established corporate law and specialized Court of Chancery make it the preferred state of incorporation for over half of all US public companies, though this primarily generates franchise fee revenue rather than directly affecting personal income tax.
Wilmington levies a local wage tax of approximately 1.25% on residents and those who work within city limits, but most other Delaware municipalities do not have a local income tax.
Delaware's 6.6% top rate is higher than Pennsylvania's flat 3.07%, but the complete absence of sales tax can offset this for many households depending on spending habits.
Compare Delaware to other states
Use our US income tax calculator to compare your take-home pay across all 50 states. You may be surprised how much location affects your net income.