Delaware 2025 taxes stay at 6.6% top; HB13 seeks higher 2026 brackets.

(DELAWARE) Delaware’s tax rules are often an early “welcome surprise” for newcomers who arrive for a first job, a transfer, or a new campus program and suddenly see state withholding on a paycheck. The main point for planning is simple: 2025 personal income tax rates and brackets are unchanged, and the top rate 6.6% still applies on taxable income over $60,000 for single filers (and over $120,000 for married couples filing jointly, because the income ranges are doubled). Proposals in House Bill 13 and its substitutes are still pending, so there is no enacted 6.75% or 6.95% bracket in force for 2026 based on the information provided.

Two anchor numbers that shape most planning

If you’re deciding whether a job offer “works” after taxes, or you’re setting up payroll for a new hire who just moved to Delaware, focus on two anchor points under current law:

• 0% on the first $2,000 of taxable income (single/MFS).
• 6.6% on taxable income over $60,000 (single/MFS), with the same bracket thresholds doubled for joint filers.

These are marginal rates, meaning only the dollars in a given bracket get taxed at that bracket’s rate. People new to the U.S. system often assume crossing $60,000 means all income is taxed at 6.6%. That isn’t how Delaware’s progressive table works.

For the state’s official formulas and tables used in guidance, use the Delaware Division of Revenue official site on personal income tax and withholding through the Delaware Division of Revenue official site.

The typical 30-day path for newcomers

Below is a practical step-by-step path many newcomers follow during their first month in Delaware.

Step 1 — Confirm whether your wages are Delaware-source income (first week)

For immigrants and other new arrivals, the first practical question isn’t a tax rate—it’s whether Delaware can tax your wages at all.

• Delaware residents owe Delaware tax on taxable income in Delaware.
• Nonresidents working in Delaware may owe Delaware tax on Delaware-source income even if they live elsewhere.

This means a commuter from a nearby state can still face Delaware withholding if the work is performed in Delaware. Remote work details matter: where you sit when you do the work can change what counts as Delaware-source income.

What to do in week one:
– Ask HR where your work is assigned and where it’s performed.
– Keep a simple log of days worked in Delaware versus outside Delaware if your schedule is mixed.
– Save offer letters and assignment emails — they often become the best “paper trail” later.

Step 2 — Fill out the right withholding form (first payroll cycle)

Employers in Delaware must withhold state income tax using the current tables and brackets. In practice, the first friction point is the state withholding form. Delaware uses Form DE-W4 for state withholding choices.

What to do before your first paycheck:
– Complete Form DE-W4 and return it to payroll.
– If you have more than one job, or if a spouse also works, expect that a “default” withholding choice can leave you short at tax time.

You can find the state withholding form and related guidance via the Delaware government’s revenue resources, including access points where employers and workers pull forms such as Form DE-W4 (Delaware Employee Withholding Allowance Certificate).

Step 3 — Learn the bracket table you’re actually under (weeks 2–4)

For single filers and married filing separately, Delaware’s 2025 table in the source material is:

This is why the sentence “2025 personal income tax rates and brackets are unchanged” matters: payroll systems, estimated payments, and personal budgeting should keep using these same thresholds unless and until the General Assembly passes a change.

What the state will ask you to do — withholding now, filing later

Most workers experience Delaware income tax in two phases: withholding now, filing later.

Withholding phase (throughout the year)

Your employer withholds throughout the year based on the current tables. If your pay changes mid-year—bonuses, overtime, a new role, or a second job—your withholding can drift away from what you truly owe.

If you’re an immigrant on a new work visa or a student starting authorized work, confusion is common: state withholding happens even while you’re still sorting out federal forms, Social Security numbers, or campus payroll steps. Delaware withholding is still tied to doing paid work in the state.

Filing phase (early the next year)

• 2025 tax-year income is reported on returns filed in 2026. That timeline catches many first-year residents off guard because the tax bill (or refund) arrives long after the move.

Practical planning ideas:
– Save your year-end wage statement and keep your Delaware withholding amount visible in your own records.
– If you move during the year, keep a clear record of your move date to help sort resident versus nonresident periods.

Worked example you can copy

A single filer with $12,345 in taxable income:

1. Base tax for the $10,000–$20,000 bracket: $261.00
2. Amount over $10,000: $2,345
3. Multiply by 4.80%: $112.56
4. Add to base: $373.56, rounded to $374

This “base plus percent over the threshold” format is how Delaware’s table works in every bracket. If you’re new to progressive taxes, this example shows that only the slice over the bracket line gets taxed at that bracket’s rate.

The standard deduction — check the current booklet

The source reports a standard deduction of $5,700 (single) and $11,400 (married filing jointly) for 2025, noting these are higher than older figures. However, the source also warns that secondary sources don’t always match the most current Delaware instructions and older numbers can persist online.

Important: Verify the standard deduction in the state’s current instructions before you file. For many immigrants filing in the U.S. for the first time, the standard deduction can be the difference between owing tax and getting a refund.

House Bill 13 — why to watch it (but don’t assume it’s law)

It’s easy to miss a bill that hasn’t passed yet, but it can still shape real decisions like job negotiations, bonus timing, and residency choices.

Key points from the source:
– House Bill 13, plus HS 1 and HS 2, would change bracket design and raise rates on higher incomes in future years, but they are still pending and have not been enacted.
– A legislative recap said a personal income tax increase via HS 2 to HB 13 “failed to advance this session but will likely resurface next year.”
– The General Assembly adjourned for 2025 without passing these measures, so the proposals do not change 2025 or 2026 rates unless and until enacted.

So, when asked “Do I need to budget for 6.75% next year?” the answer from the provided material is no: no new 6.75% or 6.95% brackets are in force for 2026. Still, high earners should monitor bill movement in 2026.

For official bill text and status, the public can track Delaware legislation through the Delaware General Assembly’s bill tracking system.

According to analysis by VisaVerge.com, state-level tax predictability can matter almost as much as visa timing for families deciding when to relocate, because small changes in withholding can affect rent approvals, car loans, and day-to-day cash flow.

Business-side change to watch: House Bill 255 (2025)

Even though individual rates stayed put, the source notes a major business-side move: House Bill 255, passed by the House in November 2025, would temporarily decouple Delaware from certain federal Internal Revenue Code provisions enacted under the federal “One Big Beautiful Bill Act” (OBBBA).

Why: budget protection — without action, Delaware projected a $400 million shortfall over three years from automatic adoption of new federal corporate tax breaks.

What the bill would do (per the source):
– Spread out depreciation and business expensing over multiple years instead of allowing large immediate deductions.
– Not affect small-business expensing up to $2.5 million, which remains fully deductible up front.
– Apply retroactively to some taxpayers (business tax years beginning in 2022; all taxpayers in 2025).

For immigrants who own a small business, invest in a U.S. partnership, or join a startup with pass-through income, these timing rules can change how fast deductions show up on a Delaware return, affecting quarterly estimated payments and cash planning.

What employers should do now for a mixed-status, global workforce

Many Delaware employers hire across borders—new graduates on work authorization, transfers, and foreign nationals arriving for specialized roles. Under the source material’s facts, the employer’s job is clear: withhold using current law and be ready if the legislature acts later.

Actions payroll teams can take immediately:
– Keep withholding systems aligned with the existing 0%–6.6% structure and confirm that new hires complete Form DE-W4.
– Communicate clearly that House Bill 13 proposals are not law yet, so employees shouldn’t assume a higher bracket applies in 2026.
– Set a process for watching Delaware Division of Revenue bulletins and the 2026 legislative calendar; if a bill passes, employers may need to update withholding quickly.

For workers, the best protection is simple:
– Keep your first paystub, your DE-W4 choices, and a running record of where you worked during the year, especially if you travel or split time between states.

Quick warnings and takeaways

• Warning: Do not assume pending legislation has changed current withholding rules — use the 0%–6.6% table until a law is enacted.
• Deadline reminder: 2025 tax-year income is filed in 2026 — keep year-end documents handy.
• If you own a business or have pass-through income: watch House Bill 255 impacts on depreciation and expensing timing.

For official Delaware guidance and forms, see the resources linked above:
– Delaware Division of Revenue official site
– Form DE-W4 (Delaware Employee Withholding Allowance Certificate)
– Delaware General Assembly bill tracking system