Delaware

Sales Tax

  • Statewide: None
  • Counties cannot levy additional sales tax.
  • Gasoline Tax: 41.40 cents/gallon (Includes all state, local, and federal taxes)
  • Diesel Fuel Tax: 46.40 cents/gallon (Includes all state, local, and federal taxes)

 

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: $12,500 pension exclusion for military retirees of all ages (other retirees receive same exclusion at age 60, but smaller exclusion before that -- see "Income Tax Comments" below)
    • Military Disability Pay: Taxable to the extent included in federal AGI*
    • VA Disability Dependency & Indemnity Compensation Benefits: Exempt
    • SBP/SSBP/RCSBP/RSFPP: $12,500 pension exclusion for military survivors of all ages (other retirees receive same exclusion at age 60, but smaller exclusion before that -- see "Income Tax Comments" below)

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. Imposes a special tax on lump-sum distributions. 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.
    • Disabled Veteran School Tax Credit: Credit of 100% of nonvocational school district property tax if 100% disability rating and state resident for three years.
  • 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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