Sales Tax
- Statewide: None
- Local governments 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 0% to 6.6% on income over $60,000 for both single and joint filers.
- Standard deduction: Single filing status: $3,250. 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). USPHS/NOAA Commissioned Officer Corps pay included under the exemption (SB 329)
- Military Disability Pay: Exempt
- 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: Can exempt $2,000 of pension income if under 60 or disabled and meet certain income requirements, $12,500 exempt 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 0.50% 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 $500. Ten-year residency requirement for new applicants.
- Disabled Veteran School Tax Credit: Credit of 100% of non-vocational 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: None.
Department of Revenue Website: https://revenue.delaware.gov
