Delaware Tax Calculator 2025
Calculate your Delaware state income tax with our comprehensive 2025 calculator featuring the First State's progressive tax rates from 0% to 6.6%, no sales tax benefits, and advanced tax planning tools for business-friendly Delaware.
Calculate Your Delaware Tax
Enter your income information to calculate Delaware's progressive state income tax with rates ranging from 0% to 6.6% plus applicable deductions and corporate considerations.
Delaware Tax Structure 2025
Delaware operates a progressive income tax system with rates ranging from 0% to 6.6%, making it a moderate-tax state with business-friendly policies. The First State has no sales tax and offers various business incentives for corporations.
DE Progressive Tax Brackets (2025)
- 0% on income up to $2,000 (single) / $4,000 (married)
- 2.2% on income $2,001-$5,000 (single) / $4,001-$10,000 (married)
- 3.9% on income $5,001-$10,000 (single) / $10,001-$20,000 (married)
- 4.8% on income $10,001-$20,000 (single) / $20,001-$40,000 (married)
- 5.2% on income $20,001-$25,000 (single) / $40,001-$50,000 (married)
- 5.55% on income $25,001-$60,000 (single) / $50,001-$120,000 (married)
- 6.6% on income over $60,000 (single) / $120,000 (married)
Standard Deductions (2025)
- Single: $3,200
- Married Filing Jointly: $6,400
- Married Filing Separately: $3,200
- Head of Household: $5,700
Delaware Tax Benefits and Business Advantages
Delaware provides several valuable tax benefits and business advantages, particularly for corporations, retirees, and working individuals. The state's business-friendly environment and no sales tax policy make it attractive for both residents and businesses.
- Personal Exemption: $110 per taxpayer and qualifying dependent
- No Sales Tax: Delaware is one of five states with no statewide sales tax
- Retirement Pension Exclusion: $12,500 annual exclusion for residents 60 and older
- Earned Income Tax Credit: Delaware version of federal EIC for qualifying families
- Childcare Credit: Credit for qualifying childcare expenses
- Business-Friendly Laws: Favorable corporate laws and Court of Chancery
- Low Property Taxes: Among the lowest effective property tax rates in nation
Delaware Residency and Business Tax Planning
Understanding Delaware residency requirements and business tax planning strategies is important given the state's unique position as a corporate haven and favorable business environment combined with moderate income tax rates.
Establishing DE Residency
Delaware considers you a resident if your domicile is in Delaware or you maintain a permanent place of abode in Delaware and spend more than 183 days in the state during the tax year.
Corporate Incorporation Benefits
Delaware's business-friendly laws, Court of Chancery, and favorable corporate statutes make it the incorporation choice for over 60% of Fortune 500 companies, despite state income tax obligations.
No Sales Tax Advantage
Delaware's no sales tax policy provides significant savings for residents and attracts cross-border shopping, helping offset state income tax burden through reduced living costs.
Retirement Income Planning
Delaware's $12,500 pension exclusion for residents 60+ and no tax on Social Security makes it relatively retirement-friendly despite income tax obligations.
Frequently Asked Questions
What are Delaware's income tax rates for 2025?
Delaware has progressive income tax rates ranging from 0% to 6.6% for 2025. The rates increase across six brackets, with the top rate of 6.6% applying to income over $60,000 for single filers and $120,000 for married filing jointly.
Is Delaware a tax-friendly state for corporations?
Yes, Delaware is highly corporate-friendly with no sales tax, low property taxes, and favorable business laws. While it has income tax, the state's business climate makes it a popular incorporation destination for companies nationwide.
Does Delaware have sales tax?
No, Delaware is one of five states with no statewide sales tax, making it attractive for consumers and businesses. This no-sales-tax policy helps offset the state income tax burden for residents.
How does Delaware tax retirement income?
Delaware does not tax Social Security benefits and provides a $12,500 annual pension exclusion for residents 60 and older. This makes Delaware relatively retirement-friendly despite having state income tax.
What deductions are available for Delaware taxpayers?
Delaware offers standard deductions, personal exemptions, earned income tax credit, childcare deductions, and various other deductions including charitable contributions and mortgage interest deductions.
How are remote workers taxed in Delaware?
Delaware residents working remotely pay Delaware tax on all income regardless of where they work. Non-residents working remotely for Delaware companies generally don't owe Delaware tax unless they work physically in the state.