Delaware State Income Tax Rates and Brackets for 2025 Explained

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Key Takeaways

• Delaware’s 2025 state income tax rates remain unchanged, with a top rate of 6.6% on income over $60,000.
• House Bill 13 introduces new 6.75% and 6.95% tax brackets effective for 2026 on income above $125,000.
• Employers must update payroll for 2025 rates and prepare for 2026 changes; taxpayers should review withholding.

Delaware’s state income tax rates and brackets for 2025 have been updated, and these changes are important for anyone living, working, or planning to move to Delaware. This update explains what’s new, who is affected, when the changes take effect, and what actions individuals and employers need to take. It also looks ahead to the changes coming in 2026, so you can plan your finances and tax filings with confidence.

Summary of What Changed

Delaware State Income Tax Rates and Brackets for 2025 Explained

For the 2025 tax year, Delaware’s state income tax rates and brackets remain mostly the same as in previous years. The rates are progressive, which means the more you earn, the higher your tax rate on each extra dollar. The highest rate for 2025 is 6.6% for income over $60,000. However, a new law—House Bill 13—will introduce two new higher tax brackets starting with the 2026 tax year. This means that while the 2025 rates are stable, higher earners will see increased rates in the following year.

Who Is Affected by These Changes?

Residents of Delaware: Anyone who lives in Delaware and earns income is subject to these state income tax rates.
Nonresidents with Delaware Income: If you work in Delaware but live elsewhere, you may also need to pay Delaware state income tax on your Delaware-sourced income.
Employers in Delaware: Businesses must use the correct rates for payroll withholding and update their systems for the new brackets in 2026.
Tax Preparers and Payroll Services: Professionals who help with taxes or payroll must stay up to date with the latest rates and bracket changes.
Immigrants and New Arrivals: If you are new to Delaware, understanding these rates helps you plan your finances and avoid surprises at tax time.

Effective Dates

2025 Tax Year: The current rates and brackets apply to income earned in 2025, which you will report when you file your taxes in 2026.
2026 Tax Year: The new higher brackets (6.75% and 6.95%) start with income earned in 2026, affecting tax returns filed in 2027.

Delaware State Income Tax Rates and Brackets for 2025

Here are the official Delaware state income tax rates and brackets for single filers and those married filing separately for the 2025 tax year:

Taxable Income Range (Single/Married Filing Separately)	Tax Calculation Formula	Marginal Tax Rate
$0 to $2,000	$0	0.00%
$2,000 to $5,000	2.20% of amount over $2,000	2.20%
$5,000 to $10,000	$66.00 + 3.90% of amount over $5,000	3.90%
$10,000 to $20,000	$261.00 + 4.80% of amount over $10,000	4.80%
$20,000 to $25,000	$741.00 + 5.20% of amount over $20,000	5.20%
$25,000 to $60,000	$1,001.00 + 5.55% of amount over $25,000	5.55%
$60,000 and over	$2,943.50 + 6.60% of amount over $60,000	6.60%

Note: For married couples filing jointly, the brackets are doubled. For example, the 6.6% rate applies to income over $120,000 for joint filers.

Standard Deductions for 2025

Single / Married Filing Separately / Head of Household: $3,250
Married Filing Jointly: $6,500

These standard deduction amounts have not changed since 2023 and 2024. There are no announced increases for 2025.

What’s New for 2026?

House Bill 13, passed by the Delaware General Assembly, brings in two new higher tax brackets for the 2026 tax year and beyond:

6.75% tax rate on income over $125,000 up to $250,000
6.95% tax rate on income over $250,000

The 6.6% rate will still apply to income between $60,000 and $125,000. These new brackets mean that higher earners will pay more tax on income above $125,000 starting in 2026.

Required Actions for Taxpayers and Employers

For Individuals:

Check Your Withholding: Make sure your employer is using the correct Delaware state income tax rates for 2025. If you expect to earn more than $125,000 in 2026, plan for higher withholding or estimated tax payments.
Review Your Tax Bracket: Use the table above to see which bracket your income falls into for 2025. This helps you estimate your state tax bill.
Claim the Right Deductions: Decide if you will use the standard deduction or itemize. The standard deduction for 2025 is $3,250 for single filers and $6,500 for joint filers.
Plan for 2026: If your income is expected to rise above $125,000, consider how the new brackets will affect your take-home pay and tax planning.

For Employers:

Update Payroll Systems: Ensure your payroll software or provider uses the correct 2025 Delaware state income tax rates and brackets.
Prepare for 2026 Changes: Plan to update your systems again for the new brackets and rates that start in 2026.
Use the Correct Forms: Employees should complete Form DE-W4 for Delaware state tax withholding. You can find the latest version of Form DE-W4 here.
Communicate with Employees: Let your staff know about the upcoming changes, especially if they are likely to be affected by the new higher brackets in 2026.

For Payroll Services and Tax Preparers:

Stay Informed: Monitor updates from the Delaware Division of Revenue and the Delaware General Assembly.
Advise Clients: Help your clients understand how the 2025 and 2026 changes affect their tax situation.
Adjust Withholding Calculations: Make sure you use the correct rates for each year and help clients plan for the higher rates in 2026.

Calculation Example for 2025

Let’s say you are a single filer with a taxable income of $12,345 in 2025. Here’s how you would calculate your Delaware state income tax:

Start with the base amount for the $10,000 to $20,000 bracket: $261.00
Calculate the amount over $10,000: $12,345 – $10,000 = $2,345
Multiply by the bracket rate: $2,345 × 4.80% = $112.56
Add to the base amount: $261.00 + $112.56 = $373.56

So, your Delaware state income tax would be about $374 for 2025.

Implications for Pending Applications and New Arrivals

If you are moving to Delaware or have recently arrived, it’s important to understand how these state income tax rates will affect your finances. For immigrants, international students, or workers on visas, knowing the state income tax rates helps you:

Budget for Taxes: Plan for how much of your income will go to state taxes.
Meet Legal Requirements: File your Delaware state income tax return on time and pay any taxes owed.
Avoid Surprises: If you come from a state with no income tax or lower rates, be aware that Delaware’s rates may be higher than you are used to.

Employers hiring new arrivals should make sure they provide the correct tax forms and explain how Delaware’s state income tax works.

Other Payroll-Related Taxes in Delaware

Besides state income tax, Delaware employers must also handle:

State Unemployment Insurance (SUI): This is a payroll tax paid by employers to fund unemployment benefits.
Local Taxes: Some localities may have additional taxes, but Delaware does not have city or county income taxes like some other states.

Employers must consider all these taxes when calculating payroll and withholding.

No Changes to Standard Deductions or Exemptions

As of the latest update, there are no changes to the standard deduction or personal exemptions for 2025. Taxpayers can still choose to itemize deductions if it results in a lower tax bill, but the standard deduction remains the same as in previous years.

How Delaware’s State Income Tax Compares

Delaware’s state income tax is considered progressive, which means it is designed to be fairer for lower-income residents. The first $2,000 of taxable income is not taxed at all. Middle-income earners pay rates between 2.2% and 5.55%. The top rate of 6.6% applies to income above $60,000 in 2025.

Starting in 2026, the new higher brackets will mean that those earning more than $125,000 will pay more. This change is meant to increase state revenue from higher earners, while keeping rates stable for most residents.

Why These Changes Matter

For Low-Income Earners: The 0% rate on the first $2,000 and low rates on the next brackets help keep taxes manageable.
For Middle-Income Earners: The rates are moderate, and the standard deduction helps reduce taxable income.
For High-Income Earners: The new brackets in 2026 will mean higher taxes on income above $125,000, so planning ahead is important.
For Employers: Accurate withholding is key to avoiding penalties and making sure employees are not under- or over-withheld.

Official Resources and Where to Get Help

For the most up-to-date information, forms, and guidance, visit the Delaware Division of Revenue website. This site provides:

Tax tables and calculators
Forms for filing and withholding
Updates on legislative changes
Contact information for help with questions

You can also track legislative changes, such as House Bill 13, on the Delaware General Assembly’s website.

Key Takeaways and Next Steps

For 2025: Delaware’s state income tax rates range from 0% to 6.6%. The standard deduction remains unchanged.
For 2026: Two new higher brackets (6.75% and 6.95%) will apply to income above $125,000 and $250,000, respectively.
Action Steps: Review your income, check your withholding, and plan for the new brackets if you expect your income to rise.
Employers: Update payroll systems for 2025 and prepare for the 2026 changes. Use the correct forms and communicate with employees.
New Arrivals and Immigrants: Learn about Delaware’s state income tax rates and how they affect your finances. Use official resources for help.

As reported by VisaVerge.com, these updates reflect Delaware’s ongoing efforts to balance fair taxation with the need for state revenue. Staying informed and planning ahead will help you avoid surprises and meet your tax obligations smoothly.

If you have questions about your specific situation, consult a tax professional or contact the Delaware Division of Revenue directly. They can provide guidance tailored to your needs and help you understand how these changes affect you.

Conclusion

Delaware’s state income tax rates for 2025 remain stable, but important changes are coming in 2026 for higher earners. By understanding the current rates, planning for the new brackets, and using official resources, you can manage your taxes effectively. Whether you are a resident, a new arrival, an employer, or a tax preparer, these updates ensure you are prepared for the year ahead and beyond.

Learn Today

State Income Tax → A tax levied by Delaware on individual earnings within the state, based on progressive rates.
Tax Brackets → Income ranges taxed at different rates, increasing progressively as income rises.
House Bill 13 → Delaware legislation adding two higher income tax brackets starting in 2026 to increase revenue.
Withholding → The portion of an employee’s wages withheld by employers to pay state income taxes.
Standard Deduction → Fixed amount subtracted from taxable income to reduce overall tax liability.

This Article in a Nutshell

Delaware’s 2025 income tax rates remain steady, but new higher brackets start in 2026. Residents and employers must plan accordingly to manage withholding and tax liabilities effectively amid upcoming changes.
— By VisaVerge.com