Yes, Delaware has a state income tax. The Delaware state income tax is a graduated tax with rates from 0% to 6.6%, and the top rate applies to taxable income above $60,000. Returns are due April 30, two weeks after the federal deadline, which catches a lot of filers off guard.1State of Delaware. Delaware’s Tax Season Starts January 26, 2026
What You’ll Pay: Rates and Brackets
Delaware runs seven brackets. Each slice of your income is taxed at its own rate, not the whole amount at the top rate that applies to you.2State of Delaware. Personal Income Tax Rates and Brackets
- $0 to $2,000: 0%
- $2,001 to $5,000: 2.2%
- $5,001 to $10,000: 3.9%
- $10,001 to $20,000: 4.8%
- $20,001 to $25,000: 5.2%
- $25,001 to $60,000: 5.55%
- Over $60,000: 6.6%
So someone with $70,000 of taxable income doesn’t pay 6.6% across the board. Only the $10,000 above $60,000 is taxed at that rate. The effective rate for that filer works out to roughly 4.8%.2State of Delaware. Personal Income Tax Rates and Brackets
Who Actually Owes It
Whether Delaware can tax your income depends on your status for the year.
You’re a resident if you’re domiciled in Delaware, or if you keep a place to live in the state and spend more than 183 days there during the tax year.3Justia. Delaware Code Title 30 – 1103 Resident Individual Defined Residents owe Delaware tax on all income, no matter where it was earned. Remote work for an out-of-state employer still counts.
Non-residents owe Delaware tax only on income from Delaware sources, such as wages from a Delaware employer or rent from Delaware property. Part-year residents report the income earned while they lived in the state, generally prorated to the months of residency.
When It’s Due and How to Get More Time
Delaware personal income tax returns are due April 30, 2026. The gap with the federal April 15 deadline is real, and it also means you can’t wait for the state deadline to deal with your federal return.1State of Delaware. Delaware’s Tax Season Starts January 26, 2026
If you need more time to file, Delaware grants an automatic five-and-a-half-month extension when you submit Form 1027 by April 30, pushing the filing deadline to October 15. The extension covers filing only. You still have to estimate what you owe and pay it by April 30, or penalties and interest start running on the unpaid amount.4State of Delaware. Delaware Form 1027 Application for Automatic Extension
Deductions and Credits That Lower the Bill
The standard deduction is $3,250 for single filers and those married filing separately, and $6,500 for married couples filing jointly.5State of Delaware. PIT-RES Instructions Those figures sit well below the federal standard deduction, so more of your income is exposed to state tax than you might assume.
Delaware does let you itemize on your state return even if you took the federal standard deduction. If your state-deductible expenses top $3,250 (or $6,500 jointly), it’s worth running the numbers both ways.
On top of deductions, every personal exemption you claim federally generates a $110 Delaware credit, applied to you, a spouse filing jointly, and each dependent. A couple with two kids gets $440. Taxpayers 60 or older receive an additional $110 credit per qualifying person.5State of Delaware. PIT-RES Instructions Credits reduce the tax itself dollar for dollar, which makes them more valuable than a same-size deduction.
Social Security and Retirement Income
Social Security benefits are fully exempt from Delaware income tax and don’t belong on your state return.6Division of Revenue – State of Delaware. Personal Income Tax FAQs
Pensions and other retirement income get a partial exclusion. If you’re 60 or older, the first $25,000 of qualifying pension or retirement income is excluded. Under 60, the exclusion is $2,000 for most pensions, though military pensions qualify for the full $25,000 regardless of age.7Delaware General Assembly. HB 108 – Pension and Retirement Income Exclusion The exclusion is per person, so a joint-filing couple where both spouses are over 60 can each claim up to $25,000.
One Local Add-On: Wilmington
Delaware cities generally don’t impose their own income taxes. Wilmington is the exception. The city charges a 1.25% wage tax on earned income, and it applies to anyone who works within city limits, whether they live in Wilmington or not.8City of Wilmington. City of Wilmington Tax Rates Employers typically withhold it as a separate line on your paycheck. For someone earning $60,000 at a Wilmington job, that’s roughly $750 in city tax on top of state income tax.
What Happens If You File or Pay Late
Miss the April 30 deadline with a balance due and the late-filing penalty is 5% per month on the unpaid amount. File on time but short the payment, and a separate 1% monthly penalty applies to the outstanding balance, capped at 25%.6Division of Revenue – State of Delaware. Personal Income Tax FAQs
Interest also runs at 0.5% per month, compounded monthly, on any unpaid tax.9Justia. Delaware Code Title 30 – 533 Interest on Underpayment The three charges stack. Someone who files late and pays late can have the 5% penalty, the 1% penalty, and 0.5% interest all accruing at the same time. Filing an extension and sending your best estimate of what you owe by April 30 is the clean way to avoid all of it.