Delaware Income Tax Rates 2025
Delaware has a progressive income tax system with 6 brackets ranging from 2.2% to 6.6%. Delaware is notable for having no state sales tax, making income tax a primary source of state revenue.
Tax Type
Progressive
Rate Range
2.2% – 6.6%
Brackets
6
2025 Tax Brackets
| Taxable Income | Rate |
|---|---|
| $0 – $2,000 | 2.2% |
| $2,001 – $5,000 | 3.9% |
| $5,001 – $10,000 | 4.8% |
| $10,001 – $20,000 | 5.2% |
| $20,001 – $25,000 | 5.55% |
| Over $25,000 | 6.6% |
See the official Delaware Division of Revenue for exact bracket thresholds, as they may be adjusted annually.
How It Works
Delaware's progressive income tax applies marginal rates to each income bracket. The top rate of 6.6% applies to income over $25,000, meaning most working residents reach the top bracket. Delaware uses its own standard deduction and personal exemption amounts.
Delaware has no state sales tax, which partially offsets the income tax burden. Social Security benefits are excluded from Delaware taxable income. Taxpayers aged 60 and older can also exclude up to $12,500 in pension and eligible retirement income.