Delaware vs Federal Tax Comparison
| Tax Type | DE State Rate | Federal Rate | Notes |
|---|---|---|---|
| Personal Income Tax | 2.2–6.6% | Federal: 10–37% | Combined fed+state applies |
| Corporate Income Tax | 8.7% | Federal: 21% | 8.7% but no sales tax = favorable for businesses |
| State Sales Tax | None | No federal sales tax | Combined avg: 0% |
| Capital Gains Tax | 6.6% | Federal: 0–20% | Same as income tax |
About Delaware Taxes
No sales tax; incorporation haven with over 1.5M registered entities.
Delaware levies income tax at rates from 2.2–6.6%. The progressive bracket system means higher earners pay a larger percentage on income above each threshold.
Corporate activity in Delaware faces a 8.7% state corporate tax rate. 8.7% but no sales tax = favorable for businesses. Combined with the 21% federal corporate rate, businesses should plan accordingly.
Calculate Your Net Salary in Delaware
See federal + DE state tax deductions, Social Security, Medicare, and take-home pay
Open US Salary CalculatorFrequently Asked Questions — Delaware Taxes
What are Delaware's income tax brackets for 2026?
Delaware has a progressive income tax ranging from 2.2–6.6%. The top rate of 6.6% applies to the highest income bracket. Filers should check the current threshold amounts on the Delaware Department of Revenue website.
What is the corporate income tax rate in Delaware?
Delaware imposes a corporate income tax at 8.7%. 8.7% but no sales tax = favorable for businesses. Businesses should also account for federal corporate tax at 21% on top of the state rate.
What is the sales tax rate in Delaware?
Delaware has no state sales tax, making it one of only five states without one. This significantly reduces the cost of goods compared to states with combined rates above 9%.
How does Delaware compare to neighboring states for taxes?
Delaware's overall tax burden ranks near average among US states. The state levies income tax at up to 6.6%. For individuals evaluating relocation or remote work, comparing the full picture — income, sales, and property taxes — is essential. Use our US Salary Calculator to estimate your net income in Delaware.
Are there any special tax incentives or exemptions in Delaware?
Delaware offers notable tax characteristics: No sales tax; incorporation haven with over 1.5M registered entities. Businesses and individuals should consult a qualified tax advisor to understand eligibility for available credits, deductions, and incentives specific to Delaware.
Cost of Living in Delaware
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