Delaware State Income Tax Withholding
Last Updated: January 2026
Overview
Delaware uses a progressive income tax system with nine tax brackets following the passage of HB 13. The state also has a standard deduction and personal credits that reduce tax liability.
2026 Tax Rates
All Filing Statuses
| Taxable Income | Tax Rate |
|---|---|
| $0 – $2,000 | 0% |
| $2,001 – $5,000 | 2.2% |
| $5,001 – $10,000 | 3.9% |
| $10,001 – $20,000 | 4.8% |
| $20,001 – $25,000 | 5.2% |
| $25,001 – $60,000 | 5.55% |
| $60,001 – $125,000 | 6.6% |
| $125,001 – $250,000 | 6.75% |
| $250,001 and over | 6.95% |
Top Marginal Rate: 6.95%
Deductions and Exemptions
| Filing Status | Standard Deduction |
|---|---|
| Single | $3,250 |
| Married Filing Jointly | $6,500 |
Personal Credit
| Credit Type | Amount |
|---|---|
| Personal Credit | $110 per exemption |
| Additional Credit (65+) | $110 |
Special Considerations
State W-4 Form
Delaware accepts the federal Form W-4 for state withholding purposes. No separate state form is required.
City of Wilmington Wage Tax
The City of Wilmington imposes a local wage tax:
| Wilmington Tax | Rate |
|---|---|
| Residents | 1.25% |
| Non-Residents Working in Wilmington | 1.25% |
Employers must withhold Wilmington wage tax for employees who work in the city.
No Other Local Taxes
Outside of Wilmington, Delaware does not have local income taxes.
Reciprocal Agreements
Delaware does not have reciprocal tax agreements with other states. However, Delaware residents who work in other states may claim a credit for taxes paid to other states.