Delaware

Sales Tax

  • Statewide: None
  • Counties cannot levy additional sales tax.
  • Gasoline Tax: 41.4 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 46.4 cents/gallon (Includes all state, local, and federal taxes)
  • Cigarette Tax: $2.10/pack of 20

 

Personal Income Tax

  • Personal Income Tax Rate Range: Six brackets from 2.2% to 6.6% on income over $60,000
  • Standard deduction: Single filing status: $3,250. Married Filing Jointly: $6,500. Additional standard deduction of up to $2,500 if 65 and over and don't itemize.
  • Personal Exemption Allowance: $110. Dependent Exemption: $110. Additional $110 if over age 60 (all taken as tax credit)
  • Itemized Deductions Allowed?: Subject to limitations.
  • Retirement Income
    • Social Security: Exempt
    • IRAs: Taxable at ordinary income tax rates*
    • 401Ks/Defined contribution employer retirement plans: Taxable at ordinary income tax rates*
    • Private pensions: Taxable at ordinary income tax rates*
    • Public Pensions: Taxable at ordinary income tax rates*
  • Military Pay
    • Active Duty Pay: Taxable to the extent included in federal Adjusted Gross Income
    • Military Retirement Pay: Taxable at ordinary income tax rates*
    • Military Disability Pay: Taxable to the extent included in federal AGI*
    • VA Disability Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: Taxable at ordinary income tax rates*

Income tax comments: Reduction in taxable income of $2,000 if over 60 or disabled and meet certain income requirements. *Up to $2,000 of retirement income is excluded for taxpayers under 60; $12,500 for 60 and over. State allows county- and city-level income tax.  

 

Property Tax

  • Local municipalities average .56% of the property's assessed value.
  • Calculation of assessed value: Varies by county. 
  • Relief programs for:
    • 65 and over: Eligible for credits equal to half of school district tax up to $400. Ten-year residency requirement for new applicants.
  • Personal Property Tax: No
Property Tax Comments: Exemptions for seniors may be eligible at the county level.

 

Inheritance & Estate Taxes: The estate tax was repealed as of Jan. 1, 2018, but estates of those who died in 2017 or earlier may still owe estate tax. There is no inheritance tax.

 

Department of Revenue website: https://revenue.delaware.gov

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